China’s Investment Spree in the UK Gave It Access to Military-Grade Technology, BBC Panorama Reveals
In a detailed investigation, BBC Panorama has uncovered how China’s significant investments in the United Kingdom over the past two decades have provided it with access to sensitive military-grade technology. According to the report, Beijing’s aggressive strategy, which saw tens of billions of pounds poured into UK businesses and projects, has enabled the transfer of cutting-edge technology and expertise with potential military applications to China.
An Ambitious Plan: Made In China 2025
The surge in Chinese investments peaked following a 2015 directive from the Chinese state aimed at catapulting the nation to global leadership in high-tech industries. The directive was part of the broader “Made In China 2025” initiative — a strategic blueprint designed to dominate ten key sectors including aerospace, electric vehicles, robotics, and semiconductors.
Despite its ambitions, this investment spree did not go unnoticed. The United Kingdom emerged as the leading G7 destination for Chinese capital, relative to the scale of its population and economy, as highlighted by research from AidData, a US-based research group specializing in tracking overseas government funding.
Transfer of Sensitive Technologies
BBC Panorama’s investigation, assisted with exclusive data access from AidData at William & Mary university in Virginia, revealed instances where Chinese acquisitions of UK companies allowed for the transfer of know-how and technologies with military potential.
One critical case involves Imagination Technologies, a Hertfordshire-based semiconductor design firm known for its intellectual property powering various electronic devices worldwide. In 2017, after financial setbacks, Imagination was acquired by Canyon Bridge, a California-based private equity fund with close links to China through its largest investor, China Reform, which reports directly to the Chinese State Council.
Allegations from Imagination’s Former CEO
Ron Black, the former CEO of Imagination Technologies, who granted his first interview since leaving the company, disclosed a troubling episode. He recounted a 2019 meeting in Beijing where he was pressured by representatives from China Reform to oversee the transfer of Imagination’s technology and engineering talent to China, including replacing British engineers with Chinese ones.
Black declined the demand. Following his refusal, China Reform attempted to install several new board directors unfamiliar with semiconductor technology but connected politically to China Reform. Increasingly concerned about military implications, Black alerted UK authorities but was told it was a private business matter beyond governmental control.
Eventually, fearing the consequences of the technology transfer, Black resigned. Subsequent to his departure, Imagination’s homegrown technology was indeed transferred to China. Black’s claims led to renewed government scrutiny, halting China Reform’s attempts to assert greater control, though Black was later unfairly dismissed in related employment proceedings.
Official Responses and Wider Implications
Imagination Technologies maintains that its technology is not used in military applications and insists it complies fully with export and trade laws. Canyon Bridge emphasized that the Imagination deal was solely driven by its own management and advisers. Meanwhile, China Reform declined to comment on allegations put forth by Black, and the Chinese Embassy reiterated that Chinese companies operating overseas are required to comply with local laws and contribute positively to host economies.
This revelation comes against a backdrop of evolving UK-China relations. In 2015, then-Prime Minister David Cameron welcomed Chinese President Xi Jinping to Britain, marking the onset of a “golden era” promising mutual economic benefits. However, awareness of China’s strategic intentions grew over time. Sir Jeremy Hunt, former UK Health Secretary and Foreign Secretary, noted that initial optimism gave way to realizing China’s more assertive global ambitions.
Sir Jeremy Fleming, former head of GCHQ (the UK’s intelligence and security agency), criticized the UK’s historically lenient approach toward foreign investment in critical scientific and technological sectors. He stressed that whilst UK companies and government enjoyed trade benefits, state-backed Chinese entities strategically refrained from giving the West reciprocal access to their own key industries, effectively exploiting asymmetries.
Lessons Learned and the Ongoing Challenge
The BBC Panorama investigation underscores the delicate balance Western nations face: engaging with China economically while safeguarding national security and technological leadership. Former US National Security Advisor John Bolton remarked on the naivety and reluctance in the West to confront what some perceive as a new form of Cold War competition.
Experts acknowledge that China’s one-party political system enables it to focus on extensive, long-term industrial and technological planning, yielding results that many countries lack the political will to match.
As global geopolitical competition intensifies, the UK and its allies are grappling with how to refine investment screening and protect critical technologies without alienating valuable economic partnerships. The story of Imagination Technologies symbolizes the complex intersection of commerce, security, and international diplomacy in a rapidly shifting world order.
This report is based on exclusive data provided to BBC Panorama by AidData and interviews with key figures involved. It sheds light on the challenges facing UK industry and government as they navigate China’s expanding global influence.
