The UK's strategic business interests not taken seriously...

[Box Brownie]

I saw this article and though not 100% new news....it seems there might or could be a change of heart/direction on the part of UK government.

China: Buyout of UK's largest microchip plant raises concerns

Welsh microchip producer has become a front-line in the tech war between the West and China.

www.bbc.com

IMO in the UK we lost sight of the need to see some aspects of UK manufacturing as of strategic in regard to the UK economy and global positioning.

Yes, we need inward investment but sometimes I do wonder about money speaking louder than the UK's self interest common sense when it comes to allowing foreign companies owning a controlling interest or indeed wholly owning a UK company !!!

 

[AndrewFlannigan]

IMO in the UK we lost sight of the need to see some aspects of UK manufacturing as of strategic in regard to the UK economy and global positioning.

The words "storm in a teacup" come to mind.

In my opinion, it really doesn't matter who owns the most shares in a company, so long as the investment continues and the workforce receives their pay. To my way of thinking, it only becomes an issue when investment is withdrawn or skills are transferred to another site, causing workers to lose their incomes.

 

[lindsay]

The flaw in that viewpoint is that a substantial shareholding can lead to seats on the board, and a majority holding can lead to Chairmanship and a board majority, which can then lead to IPR and actual production being offshored

 

[woof woof]

I saw this article and though not 100% new news....it seems there might or could be a change of heart/direction on the part of UK government.

China: Buyout of UK's largest microchip plant raises concerns

Welsh microchip producer has become a front-line in the tech war between the West and China.

www.bbc.com

IMO in the UK we lost sight of the need to see some aspects of UK manufacturing as of strategic in regard to the UK economy and global positioning.

Yes, we need inward investment but sometimes I do wonder about money speaking louder than the UK's self interest common sense when it comes to allowing foreign companies owning a controlling interest or indeed wholly owning a UK company !!!

Yup. I've thought this for years and indeed we've seen examples in the past of the UK's interests and I include in that jobs and wealth generation suffering as a consequence of being bought by a foreign entity. In many cases the process would not have been allowed to happen in the reverse direction. It's been the case for a very long time that competitor nations take a far greater interest in the market and interfere more than any UK government ever has in modern times and they take a far longer view.

Also I think that some sectors are just far to important to leave in private or foreign control. Years ago I'd have limited that to the likes of water, electricity / other energy, health, security and public transport but I think that list should expand to include things with any large society needs and should have such as steel, shipbuilding, defence industries and sectors such as electronics and volume vehicle manufacturing. I don't want a communist style state runs everything future but key sectors and industries should be controlled or at least heavily supported at times and influenced for the good of our society, not someone else's but I'd want efficiency and value and benefit for the UK, not people sleeping on the job as in the darkest days of British Leyland.

 

[AndrewFlannigan]

which can then lead to IPR and actual production being offshored

Agreed and that was the point I was making.

The key function of the government, in my opinion, is to keep the jobs on-shore. The one axe that can be held over foreign investors' heads is nationalisation, a filthy word since Thatcher but a powerful weapon when wielded by a credible government.

 

[Mr Bump]

Chinese investors have amassed nearly £134bn of assets in key UK industries ranging from energy companies and transport hubs to breweries and schools.

Nearly 200 British companies are either controlled by groups or individuals based in China and Hong Kong or count them as minority

china has a lot of money and spreads it all over the world , all part of it growing its economy

 

[Box Brownie]

Chinese investors have amassed nearly £134bn of assets in key UK industries ranging from energy companies and transport hubs to breweries and schools.

Nearly 200 British companies are either controlled by groups or individuals based in China and Hong Kong or count them as minority

china has a lot of money and spreads it all over the world , all part of it growing its economy

And part of its "soft power" expansionism.

PS the EU's dependency on Russian fossil fuel should be a timely reminder of what can happen if the "worst" happens!!!

 

[Mr Bump]

And part of its "soft power" expansionism.

PS the EU's dependency on Russian fossil fuel should be a timely reminder of what can happen if the "worst" happens!!!

nope the worlds dependance on fossil fuel and not doing enough to move on is the answer to that question.

 

[Box Brownie]

nope the worlds dependance on fossil fuel and not doing enough to move on is the answer to that question.

Globally yes, but the short term impact regional (& wider?) was what I was alluding to/pointing out.

 

[john.margetts]

The words "storm in a teacup" come to mind.

In my opinion, it really doesn't matter who owns the most shares in a company, so long as the investment continues and the workforce receives their pay. To my way of thinking, it only becomes an issue when investment is withdrawn or skills are transferred to another site, causing workers to lose their incomes.

If the shares are owned by overseas investors, the profits go overseas.

 

[AndrewFlannigan]

If the shares are owned by overseas investors, the profits go overseas.

That's obvious

...but the investment came from overseas and the employees and our treasury benefits from that.

 

[lindsay]

The trouble is, foreign investment often comes in with tax breaks, so the net effect on the balance of payments and GDP becomes negative if the RoI of the investment exceeds the input benefit and the RoI is remitted ex-UK.

 

[john.margetts]

That's obvious

...but the investment came from overseas and the employees and our treasury benefits from that.

Their expectation is that they will receive more than they invest, the foreign investment being a negative drain on the UK economy.

 

[AndrewFlannigan]

The trouble is, foreign investment often comes in with tax breaks,

Again, I agree with you.

However, the problem lies with tax breaks, in all cases. If you receive income, then you should pay tax. It's the desire of chancellors to curry favour by giving tax allowances that causes many of the country's problems with budgeting.

 

[AndrewFlannigan]

Their expectation is that they will receive more than they invest, the foreign investment being a negative drain on the UK economy.

I don't quite understand your point.

Are you discussing the effect on balance of payments, caused by both inward and outward investment?

 

[Mr Bump]

Their expectation is that they will receive more than they invest, the foreign investment being a negative drain on the UK economy.

but the issue is there isn't currently enough freely available investment money in the UK to pick up the slack.
The chinese have trillions to play with, this country doesn't and since BREXIT no one in the EU wants to invest in this doomed country.

We (the UK) still seem to think we are actually an important business and economic player and we are not.

good article below outlining the massive labor shortage we now have because of BREXIT for the hospitality industry in Scotland

We're so short-staffed our hotel has to turn people away

Business owners say they face increasing problems due to staffing shortages and soaring inflation.

www.bbc.co.uk