MPs have summoned Imagination Technologies executives before parliament following reports that the UK government was forced to block efforts by Beijing to take control of the company’s board.
Canyon Bridge, an investment firm backed by Chinese state funds, secured approval from the UK to acquire the British tech company in 2017, following assurances it would continue to invest in the country.
But reports emerged last week that China Reform Holdings, a Beijing-controlled fund, had attempted to parachute four members on to Imagination Technologies’ board, prompting speculation of a plot to redomicile the company to China.
“What we think is going on is the Chinese are trying to export the technology base from here to China and that’s inappropriate,” the Conservative MP David Davis told Reuters earlier this week.
The company cancelled a meeting to approve the appointments after the digital and culture secretary, Oliver Dowden, wrote to chairman Ray Bingham last week to request a meeting, the Financial Times reported.
Now MPs are concerned that Beijing could be attempting to take control of sensitive security software designed by the company to scan for vulnerabilities in digital networks. “The world has changed and companies – particularly tech companies – are on the frontline,” Tom Tugendhat, the chair of the foreign affairs select committee summoning Imagination’s executives before parliament, told the BBC.
“Whoever writes the code, writes the rules for the world, more than any regulation passed by bureaucrats. There’s no point in taking back control from Brussels, only to hand it over to Beijing,” Tugendhat added.
Ron Black, Imagination’s chief executive, stood down last week, reportedly telling employees that China Reform’s promise to be a passive investor had not materialised. “I will not be part of a company that is effectively controlled by the Chinese government,” he said in a resignation letter reported by the BBC.
Ray Bingham, who has been named interim CEO, said in a statement: “Since acquiring Imagination Technologies in 2017, we’ve made great progress in transforming the company and we remain fully committed to the UK and to supporting our customers around the world. Our strategy will benefit the company’s headquarters and global business development and our priority remains our customers and staff.
“We thank Ron for his service and wish him all the best for the future. I would also like to thank our customers and staff for their continued support.”
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