Recently, media reports have exposed that Chinese investments in the UK total up to a staggering £190 billion (over $250 billion USD), covering sectors such as nuclear power, water services, natural gas, ports, telecommunications, and data centers. This investigation has not only shaken the political scene in London but also marked a turning point in Sino-British relations – transitioning from the former “Golden Era” to a state of comprehensive vigilance.
According to a lengthy “China List” published by The Sunday Times in the UK, Chinese and Hong Kong individuals, companies, and state-owned entities collectively hold 442 assets in the UK, with ownership percentages in critical infrastructure far exceeding public knowledge. For instance, China General Nuclear Group (CGN) owns a 27.4% stake in the Hinkley Point C nuclear power station.
China Investment Corporation (CIC) holds 8.7% of Heathrow Airport, 9% of Thames Water, 10.5% of gas distributor Cadent Gas, and a 60% share of logistics real estate company Logicor, controlling 176 distribution centers. China’s State Development & Investment Corporation (SDIC) controls a 50% share in the Inch Cape offshore wind farm.
Moreover, Chinese government-related entities purchased the former site of the Royal Mint in central London for £255 million, planning to construct a large Chinese embassy.
Anne Keast-Butler, Director of Government Communications Headquarters (GCHQ), vigilantly expressed that Beijing poses a “systemic challenge that changes the times,” threatening national security and international order.
Dan Jarvis, Minister for Security of the UK Home Office, emphasized in parliament that “national security must take precedence over economic cooperation.”
Opposition Member Dame Priti Patel criticized the Labour government for “bowing to please Beijing.”
Commentator Li Linyi told The Epoch Times that these voices reflect the UK’s perception of Chinese investment infiltration as a security rather than a purely commercial issue.
Yao Yuan, a professor of international studies at the University of St. Thomas in the United States, told The Epoch Times that this is not just a monetary issue but a “substantial threat to democratic systems.”
“When a regime with ill intentions holds vast capital in other democratic countries, it has the ability to influence the politics and society of that country,” explained Yao Yuan.
Yao Yuan speculated that the UK is just the beginning, and other countries will also reassess the flow of Chinese investment in the past 30 years. These covert investments and capital flows will gradually undergo legal and institutional scrutiny, turning economic infiltration into a security issue.
He added, “The foundation of the UK is still that of an old democratic country… People are increasingly aware of whether the growing Chinese investment will change the UK.”
Taiwanese economic commentator Huang Shicong questioned, “Does the flow of assets behind these funds involve ‘princelings’ and ‘official second-generation’ figures? This disclosure may be a ‘tiger hitting at the mountain,’ telling Beijing: we know where your money is and who is behind it.”
He told The Epoch Times that the recent joint revelations by the UK and the US about Chinese money flows and money laundering networks, from the Chinese woman Qian Zhimin’s Bitcoin fraud case to the pursuit of the head of a Cambodian telecom fraud group Chen Zhi, demonstrate that the West is actually well-informed.
Huang Shicong emphasized, “The era of disguise is over.”
The Sunday Times investigation revealed that Chinese influence penetrates multiple aspects of daily life in the UK. Apart from critical energy and infrastructure, in the education sector, 28 private schools in the UK are owned by Chinese entities, including the 741-year-old Ruthin School. As of 2024, Chinese students account for the highest number among foreign students in UK private schools, reaching 6,258.
The “China Travel Group Company” of the Chinese government owns over 60 hotels through Kew Green Hotels, two of which are leased long-term by the UK Home Office as asylum hotels, generating an annual revenue of £15 million. Another hotel brand, Campanile, under the Shanghai city government, operates refugee centers in Cardiff.
It is believed that the Beijing authorities are profiting from the UK public budget through government contracts. British taxpayers not only question the financial justice of these activities but also worry about the risk of national sovereignty infiltration.
Furthermore, prestigious assets such as the English Premier League club Wolverhampton Wanderers FC, luxury car brand Lotus, Wentworth Golf Club, and renowned shoe brand Clarks are also under Chinese control.
The report also mentioned that private investments from China and Hong Kong in the UK amount to £139.2 billion, covering real estate, communications, retail, data centers, manufacturing, and other industries.
For example, the Li Ka-shing family owns a 75% stake in Northumbria Water, and holds a majority interest in Vodafone and Three after their merger; Zhang Songqiao owns the London landmark Leadenhall Building; the Lee Kum Kee family owns the Walkie Talkie Building.
Li Ka-shing’s son, Richard Li, is also a member of the Beijing Municipal Committee of the Chinese People’s Political Consultative Conference.
According to China’s National Intelligence Law, companies are obligated to assist the Chinese government in intelligence work, giving all Chinese-funded entities potential ties to the Chinese state.
However, the UK has started to become vigilant. Li Linyi stated that just as the model of the US Committee on Foreign Investment (CFIUS), the UK has begun to establish a system for foreign investment security review and registration. The Foreign Influence Registration Scheme (FIRS), which came into effect in July this year, will require disclosure of holdings and lobbying activities involving foreign governments or state-owned enterprises.
He emphasized that this reform means that sensitive Chinese investments cannot pass easily under the guise of “commercial interests.”
Li Linyi further pointed out that London will include Chinese investments in data centers and cloud supply chains in stricter oversight and risk assessments, building on previous preventive measures.
According to another report from The Sunday Times in mid-October, the UK banned Chinese firm Huawei from participating in 5G construction in 2020. The Strategic Defence Review released in June 2025 classified Beijing as a “calculated and sustained challenge,” warning of its influence on the West through espionage and cyber actions.
The investigation also indicated that Chinese sovereign wealth funds and the People’s Bank of China hold stakes in London Stock Exchange’s FTSE 100 Index components such as Shell, BP, mining giant Rio Tinto, and pharmaceutical company AstraZeneca.
The report disclosed that these investments pose potential national security risks in terms of financial market transparency and risk disclosure. Experts recommend that authorities include their voting rights and dividend flows in risk assessments.
Jingye Group, a Chinese company, acquired British Steel in 2020, pledging a £1.2 billion investment and maintaining 3,000 employees, which later sparked controversy. British Business Minister Jonathan Reynolds admitted that the UK had been overly naive in its trade with China, stating that the country no longer welcomes Chinese corporate investments in the steel industry.
The UK government temporarily took control of the plant using emergency legislation and appointed Ernst & Young (EY) as interim managers.
Negotiations between the UK and China have reached an impasse. The Chinese side demanded a minimum of £1 billion to relinquish legal control, but it is reported that Jingye Group may be willing to forgo the claim if the Labour government approves the construction of a new Chinese embassy in London. A ruling on the Chinese new embassy construction case was originally scheduled for October but has been postponed to December.
Li Linyi remarked that this controversy reflects how Chinese investments often intertwine “commercial interests” with “political conditions” in negotiations.
He further stated that former Conservative Prime Minister David Cameron promoted the “Golden Era” between China and the UK. Public opinion has now largely equated “Chinese funds” with “political infiltration,” severely undermining Beijing’s image as a “reliable economic partner,” and UK authorities have also admitted that they “underestimated the political risks of Chinese funds in the past.”