Government blocks Hong Kong takeover of electronics specialist

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In a new report issued by the Treasury Select Committee, MPs warned that Britcoin's introduction could increase the chance of bank runs and put up the cost of borrowing.
In a new report issued by the Treasury Select Committee, MPs warned that Britcoin's introduction could increase the chance of bank runs and put up the cost of borrowing.

The proposed takeover of an electronic design company by a Hong Kong firm has been blocked by the Government over national security concerns.

Super Orange HK had sought to acquire Bristol-based Pulsic but the Government argued there was the potential for tools to be exploited “to build defence or technological capabilities”.

The Department for Business, Energy and Industrial Strategy revealed the software developed by Pulsic could be used “to facilitate the building of cutting-edge integrated circuits that could be used in a civilian or military supply chain”.

The move is the latest attempt to limit Chinese involvement in British businesses and technology.

In 2020, Chinese mobile provider Huawei was also snubbed from the UK’s 5G infrastructure over national security concerns, which were denied by the company.

The government is currently assessing a Chinese-backed takeover of Newport Wafer Fab, Britain’s largest microchip factory.

The latest takeover attempt was blocked under the National Security and Investment Act, which came into force in January.

It gives the government powers to scrutinise and intervene in business transactions to protect national security.