Deputy Prime Minister of UK: Strengthen Economic Defense to Address Threats from China and Russia

UK Vice Prime Minister Oliver Dowden announced that the UK will review its policies and regulations regarding foreign investment and exports to safeguard national security. He warned that actions from countries such as China and Russia pose threats to the global economy.

Speaking at the Chatham House in London on Thursday, Dowden emphasized that globalization has exposed security risks related to economic integration, and the UK needs to strengthen its economic defense to address the “security risks” brought by globalization.

He cited the rise in natural gas prices triggered by Russia’s invasion of Ukraine and the “economic coercion behavior of China (Chinese Communist Party).”

Dowden stated, “Our open economy is becoming a target for state actors and their proxies, involving our inward and outward investment flows, imports and exports, and academic cooperation.”

He emphasized, “Various aspects of our economic security interests are under threat, and the nature of these threats is constantly evolving.”

Dowden pointed out that some foreign investments may raise national security concerns, saying, “These investments may drive technological advancements, thereby enhancing the military and intelligence capabilities of relevant countries.”

Therefore, the government will establish a review panel to assess the risks of foreign direct investment and initiate discussions on improving export controls for emerging technologies.

The UK has already enacted the National Security and Investment Act to regulate and intervene in the acquisitions of UK companies, particularly targeting investments and acquisitions from countries like China.

The UK government stated that it would adjust relevant policies, prioritize national security, maintain business-friendly environments as much as possible, provide targeted exemptions, and possibly expand the scope of control to critical minerals and semiconductor industries.

Dowden affirmed that the UK will not decouple from the global economy and will continue to “maintain openness.”

He remarked, “While we will not decouple, we must de-risk, and our policies must continuously adapt to changes.”