Britain must defend its companies against overseas takeovers in the aftermath of the crisis caused by the coronavirus outbreak, a senior British lawmaker said, adding that China’s state-owned companies have drawn on state banks to outbid rivals.
“Increasingly, China's state-owned enterprises have been able to draw on state banks to outbid rivals in Europe and America,” Tom Tugendhat, chair of the Foreign Affairs Select Committee and a Conservative Party lawmaker, wrote in the Financial Times newspaper.
Our open economy is only a strength if all sides are playing by the same rules. If one is using state-backed credit to achieve monopolies all we’re doing is making the tools to be used against us. https://t.co/dCSYHF7Txg— Tom Tugendhat (@TomTugendhat) May 23, 2020
“In a downturn, the difference between state-backed credit and the buying power of normal commercial investors will become starker, further strengthening the hand of state-owned enterprises with a voracious appetite to buy rather than build.”
Tugendhat wrote that while Britain has prided itself on being an open economy with few restrictions on foreign ownership for decades, the basis for that model has been changed by the “rise in state capitalism with deep pockets.”
Last month, Tugendhat said China was trying to exploit the global crisis triggered by the novel coronavirus outbreak by wresting control of companies such as Imagination Technologies and changing the way the internet works.
UK to reduce Huawei's involvement in 5G network
China’s Huawei headache: More than what meets the eye
UK says PM Johnson’s adviser Cummings did not break coronavirus lockdown guidelines
Coronavirus: Britain signs deals for 10 million antibody tests from Roche and AbbottBritain will buy 10 million coronavirus antibody tests from Roche and Abbott and will roll them out to health workers from next week, health minister ... Coronavirus
Coronavirus: Britain to introduce two-week quarantine for arrivalsBritain plans to introduce a 14-day mandatory quarantine for most international arrivals, reports said Saturday, despite growing pressure on the ... Coronavirus
Post-Brexit talks between US, Britain beginBritain begins post-Brexit trade talks with the United States on Tuesday, with 100 negotiators on each side joining via videoconference.Many in Prime ... World News
Coronavirus: Britain to pilot new tracing app on Isle of WightBritain will trial a new coronavirus tracing program next week on the Isle of Wight, just off the south coast of England, cabinet minister Michael ... Coronavirus