The UK government has banned a Chinese company and its prospective Sino-British joint venture from acquiring intellectual property and technology related to graphene from Versarien, a British advanced materials company.
Graphene is considered a strategic resource in the field of new materials due to its conductivity, strength, and lightweight properties, with wide applications in aerospace, defense, energy storage, and electronics.
The order prohibits Anhui Boundary Innovative Materials Technology (BIMT), and its associated joint venture with Versarien UK Joint Venture Co., from acquiring Versarien's graphene production capabilities, specialized technologies, and related intellectual property.
Versarien is banned from transferring to BIMT both tangible and intangible assets, including assets available for use by Versarien Plc through its access to the UK graphene industry and academia, according to the order.
The announcement said McFadden considers the measures in the final order “necessary and proportionate” to “prevent, remedy or mitigate risks to national security."
Since NSIA came into effect in 2022, the UK has blocked or reversed Chinese investments in advanced technology and infrastructure for national security reasons.
On July 20, 2022, the UK government blocked a licensing agreement between the University of Manchester and Beijing Infinite Vision Technology for vision-sensing technology with dual-use applications in robotics, VR, automotive, and surveillance, citing risks of enhancing Chinese defense capabilities. This marked the first use of NSIA powers to block a transaction.
One month later, the acquisition of Pulsic, a Bristol-based electronic design automation company, by Super Orange HK, an entity linked to a Chinese state-backed company, was blocked. Pulsic’s software for designing integrated circuits had dual-use potential in civilian and military supply chains.
In November 2022, the government ordered Nexperia B.V., a Dutch subsidiary of Chinese-owned Wingtech Technology, to divest its majority stake in Newport Wafer Fab, the UK’s largest semiconductor manufacturer, over concerns about potentially undermining UK capabilities.