MINISTERS have blocked a Chinese takeover of a British chip-maker over spying fears.
They demanded it be investigated “on public interest grounds relating to national security”.
China’s Taurus International Ltd and others are seeking to take over Swansea-based Perpetuus Group, which makes semiconductors used in a wide variety of tech.
Business Secretary Kwasi Kwarteng has ordered the competition watchdog to report back by February before a final call is made on whether the controversial merger can go ahead.
Taurus already owns a huge chunk of the business and there are concerns that approving the deal will give China the upper hand in mobile and tech communications.
Last year, PM Boris Johnson reversed the decision to allow Chinese company Huawei to play a role in building the UK’s 5G infrastructure.
Ministers instead laid out plans to reduce its market share down to zero by 2050, after information from Britain’s intelligence agencies.
COP26 president-designate Alok Sharma arrived in China for crucial climate talks last night.
He faces an awkward meeting as he tries to get China to sign up to ambitious net zero goals ahead of the November summit.
The Business Department said: “We have been clear that foreign investment must not threaten our national security.”
