China’s Investment Spree in the UK Gave It Access to Military-Grade Technology, BBC Panorama Reveals
By Celia Hatton, BBC Panorama
Published 17 November 2025
China has poured tens of billions of pounds into UK businesses and projects over the past two decades, gaining access to cutting-edge technology—some with military applications—according to an exclusive BBC Panorama investigation.
Massive Chinese Investment in the UK
Since the early 2000s, China has invested approximately £45 billion ($59 billion) in the UK, adjusted to 2023 prices. This investment surge accelerated after a 2015 directive from the Chinese state aimed at positioning China as a global leader in a series of high-tech industries, including aerospace, electric vehicles, robotics, and semiconductors.
Relative to its population and economic size, the UK has become the leading G7 destination for Chinese overseas investments, according to data from AidData, a research group based at the College of William & Mary in Virginia, USA. AidData specialises in tracking how governments allocate money internationally and has provided its proprietary data to the BBC for this investigation.
Strategic Ambitions Behind Investments
While some of the investments made by Chinese state-backed entities were commercial in nature, many aligned with Beijing’s long-term strategic ambitions as outlined in the 2015 “Made In China 2025” plan. This blueprint set out aggressive targets for China to dominate ten high-tech sectors globally.
Dr Brad Parks, AidData’s executive director, emphasises the dual nature of these investments: “Some were commercial, but others clearly served a strategic purpose.”
Professor Keyu Jin of the Hong Kong University of Science and Technology highlights China’s foresight in strategic planning: “It’s longer-term strategic thinking that China has always had, and I’d argue many other countries should too.”
Case Study: Imagination Technologies
BBC Panorama examined how some Chinese acquisitions led to the transfer of technology with military potential to China. A notable example is Imagination Technologies, a UK firm based in Hertfordshire. The company specialises in semiconductor design — the creation of intricate electronic circuits inside chips that power everything from smartphones to computing devices.
In 2017, after losing its biggest client, Apple, Imagination’s share price plummeted. It was acquired for £550 million by Canyon Bridge, a private equity firm headquartered at the time in California, USA. Notably, Canyon Bridge had a single investor: Yitai Capital, whose largest stakeholder is China Reform. This organization reports directly to China’s State Council, which implements Communist Party policies.
Two months prior to the Imagination deal, Canyon Bridge had attempted to purchase a semiconductor company in the US. That acquisition was blocked due to US investment screening laws focused on national security concerns.
Transfer of Technology and Expertise
The true value of Imagination lay in its intellectual property and the expertise of its engineers, developed over decades. The underlying algorithms, although designed for commercial use, had potential applications in military systems such as missiles and drones.
Ron Black, former CEO of Imagination Technologies, revealed to BBC Panorama that although the UK government approved the acquisition, he was assured by Canyon Bridge that China Reform would be a passive financial backer only.
However, in 2019, Black was summoned to Beijing and asked to work directly for China Reform to facilitate the wholesale transfer of Imagination’s technology and expertise to China. He recalls being told by a China Reform representative: “From the heads of the British engineers to the Chinese engineers, then lay off the British engineers and you’ll make a lot of money.”
Black refused, but said China Reform attempted to place four directors without semiconductor experience onto Imagination’s board. He suspected these appointments aimed to solidify Chinese control.
UK Government’s Response
Concerned about the risks of military-grade technology falling into Chinese hands, Black contacted UK government officials. Though he felt he was heard sympathetically, he was told it was a private business matter with limited government recourse. Distressed by the situation, Black resigned, prompting increased government scrutiny. China Reform then abandoned its efforts to install new directors.
Black was later dismissed from Imagination under contentious circumstances and was found by an employment tribunal to have been unfairly dismissed. Following his departure, Imagination’s technology was transferred to China, although Imagination insists none of its technology is used for military purposes and that all transactions comply with export and trade laws.
Canyon Bridge stated that the Imagination acquisition was an independent transaction led solely by its own team and advisers.
Official Responses
The Chinese Embassy maintained that Chinese companies operating overseas strictly comply with local laws and contribute positively to local economies.
The UK government was less prepared to block such sales in 2017. At that time, British Prime Minister David Cameron had recently welcomed Chinese president Xi Jinping on a historic state visit hailed as the beginning of a “golden era” in Sino-British relations—a period characterised by optimism over business opportunities.
Sir Jeremy Hunt, former UK Foreign Secretary, reflected: “We thought China was basically a very friendly power and there was lots of money to be made. But under the surface, we were beginning to sense a much more assertive China.”
The Security Dilemma
The challenge facing the UK is how to balance lucrative trade and investment with safeguarding national security. Former GCHQ chief Sir Jeremy Fleming described it as a “trillion-dollar question.” He acknowledged the benefits of UK-China relations but warned the UK had been “far too free” in allowing access to strategic industries. He contrasted this with China’s approach, which tightly controls foreign investment into key sectors.
John Bolton, former US National Security Advisor, agreed that in 2017-18, Western nations were naive about China’s strategic intentions, reluctant to acknowledge a new era of rivalry.
Broader Perspectives
Some experts argue that Beijing’s actions reflect long-term strategic planning rather than wrongdoing. Professor Keyu Jin pointed out that China’s one-party system enables it to set and pursue multi-decade goals without interruption—an advantage other countries might learn from.
BBC Panorama’s Special Report
The investigation is featured in the BBC Panorama episode titled “Britain and China: Following the Money,” which explores the difficult questions Britain faces in dealing with China: how to engage with a rising superpower while ensuring the UK’s safety and sovereignty.
The program is available on BBC iPlayer and was broadcast on BBC One on Monday 17 November 2025. —
Image caption:
Chinese leader Xi Jinping and former UK Prime Minister David Cameron share a pint of beer during Xi’s 2015 state visit — a period later revealed as the prelude to intensified Chinese investment strategies aimed at UK strategic industries. (Getty Images)
For further information, watch BBC Panorama’s special report or visit the BBC News website.
