The British government announced on Wednesday (August 20) that it would ban China’s Anhui Boundary Innovative Materials Technology Co., Ltd. (BIMT) and Sino-British joint ventures from acquiring the intellectual property and technology related to graphene owned by 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, widely used in aerospace, defense, energy storage, and electronics industries.
According to the announcement, British Secretary of State Pat McFadden cited national security as the reason for signing the “final order” under Section 26 of the National Security and Investment Act 2021, prohibiting Anhui Boundary Innovative Materials Technology and its joint ventures from acquiring Versarien’s graphene production, technical expertise, and related intellectual property.
This final order has been published on the government website, prohibiting Versarien from providing its tangible and intangible assets related to graphene, including technology, property rights, professional knowledge available in the UK’s graphene industry and academic community, as well as intellectual property and technology with dual military and civilian applications, to Anhui Boundary Innovative Materials Technology.
The acquisition falls under the provisions of Section 9(1)(a) and Section 9(1)(b) of the National Security and Investment Act, deemed a “trigger event” subject to government review or intervention.
The announcement stated, “Duke of Lancaster Minister Pat McFadden believes that the various provisions of the final order are necessary and proportionate measures to prevent, remedy, or mitigate national security risks.”
The parties involved include Anhui Boundary Innovative Materials Technology, Versarien, and the future UK joint venture company (JV Co) to be established by the two aforementioned companies. Subsidiaries, controlled entities, or affiliated companies of the aforementioned parties are similarly bound by this order.
The order came into effect on August 20.
Experts believe that Chinese involvement in the transaction could lead to the outflow of critical technology, posing a challenge to the UK’s defense and technological competitiveness. This move continues the trend of strict scrutiny of Chinese acquisitions by the UK in recent years.
Since the enactment of the National Security and Investment Act in 2022, the UK has repeatedly blocked or withdrawn Chinese involvement in transactions related to advanced technology and infrastructure for national security reasons. Market observers point out that this case demonstrates the tightening control of London authorities over strategic industries, especially against the backdrop of escalating US-China rivalry, aligning the UK and its allies’ positions more consistently.
Anhui Boundary Innovative Materials Technology was founded in February 2024, headquartered in Huaining City, Anhui Province. According to its official website, Boundary Innovative mainly focuses on the research and development of high-performance lithium new materials, manufacturing, and sales, with its main products being nano-level silicon-carbon negative electrode materials and new conductive agents used in electric vehicles, consumer electronics, power tools, and other fields.