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National Security and Investment Bill - Sitting 1
24 November 2020
Type
Public Bill Committee
At a Glance
Issue Summary
Derek Twigg is chairing a Committee meeting discussing the National Security and Investment Bill and managing technical issues during the session. Charles Parton discusses the need for the UK Government to address the issue of foreign, particularly Chinese, technology acquisition and investment that may pose security risks. Charles Parton discusses the National Security and Investment Bill and its implications for addressing national security threats through investment. Derek Twigg discusses the National Security and Investment Bill, focusing on ensuring an effective and streamlined system for national security screening. Charles Parton discusses the need for safeguards in the National Security and Investment Bill to protect academic and commercial relationships with China, as well as the protection of intellectual property rights. The statement discusses concerns about the National Security and Investment Bill's ability to protect against indirect control and influence from potentially hostile operators. Derek Twigg introduces Sir Richard Dearlove as a witness to provide expert testimony on national security threats and the adequacy of existing public interest powers. The speaker discusses historical and current national security concerns regarding strategic material flow, intelligence operations, and economic ties with China, emphasizing the need for cautious engagement. The statement discusses the need for flexibility and strategic thinking in addressing national security threats from China and other hostile states, emphasizing the importance of balancing transparency with the sensitivity of national security decisions. The statement discusses the National Security and Investment Bill and its potential impact on national security, particularly regarding investments from foreign entities in critical UK infrastructure. The MP discusses concerns about foreign investment in critical national infrastructure, particularly regarding China's influence. Derek Twigg, MP for Widnes and Halewood, is addressing the National Security and Investment Bill committee.
Action Requested
Twigg requests for the witness, Charles Parton, to introduce himself and reminds Members about the scope of questions related to the Bill. He also suspends the sitting briefly due to technical difficulties and resumes after resolving them.
Key Facts
- Derek Twigg is chairing a Committee meeting on the National Security and Investment Bill.
- The meeting includes discussions with witnesses such as Charles Parton, OBE.
- Technical issues caused a brief suspension of the session.
- Parton is an associate fellow at the Royal United Services Institute.
- There have been only 12 cases since 2002 of technology acquisitions raising national security concerns in the UK.
- Oxford University and Huawei commissioned research on drone technology, cryptography, and gait recognition.
- The Bill is designed to deliver a quasi-judicial role for the Secretary of State for Business, Energy and Industrial Strategy.
- Parton criticises the division between economic and security Ministries in handling issues like Huawei.
- China's investment has declined since 2016 and is now more tightly controlled for acquiring science and technology.
- Charles Parton discusses the importance of involving various government bodies, including intelligence services, Ministry of Defence, and diplomatic corps.
- The Bill lacks a clear definition of national security compared to similar legislation in Germany and Japan.
- Parton emphasizes the need for open trading relations with China while upholding UK values and interests.
- Academics and universities are under pressure from China, especially when setting up companies.
- Intellectual property rights are at risk due to China's campaign to obtain IP through cyber theft.
- The Centre for the Protection of National Infrastructure aims to advise on cybersecurity but may need strengthening.
- The Bill aims to protect national security while promoting investment in the UK.
- It needs detailed research and resourcing structures to be effective.
- Comparative research with Five Eyes partners has not been done.
- Derek Twigg introduces Sir Richard Dearlove as a witness.
- Sir Richard Dearlove served as the head of MI6 from 1999 to 2004.
- Historically, heavy controls were in place to prevent strategic material from reaching Soviet bloc countries.
- A major intelligence success dismantled the Soviet Union's global strategic material acquisition efforts in the mid-1980s.
- Post-Soviet era saw a laissez-faire approach towards economic relationships with former Warsaw Pact nations and emerging China.
- Chinese intelligence focuses on economic growth, targeting Western education systems to gather strategic information.
- The speaker criticizes past naivety regarding Huawei's involvement in 5G infrastructure.
- China's strategy involves increasing carbon emissions until 2030 before transitioning directly to nuclear and hydrogen energy.
- The Bill should be flexible enough to accommodate changing threat scenarios from various states, including Iran and North Korea.
- Historical examples like Pakistan's A. Q. Khan network highlight the need for control by security services in areas of research involving national security.
- The National Security and Investment Bill aims to scrutinise investments coming into the UK.
- Sir Richard Dearlove raises concerns about foreign entities having strategic pieces of critical infrastructure.
- He mentions that Chinese involvement in nuclear power stations is a significant area of concern.
- MP discusses concerns about Chinese investment in British companies.
- Mentions CNOOC's control over North Sea oil production through Nexen.
- Questions whether the Bill goes far enough compared to other countries like Australia and the US.
- The Committee focuses on China's strategic relationship with other countries.
- Sir Richard Dearlove mentions a graded system for differentiating treatment of allied countries like India compared to China.
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