The British government has blocked the sale of Lotus Cars to a Chinese-backed private equity firm, citing national security concerns. The decision follows a review under the Enterprise Act 2002, which allows ministers to intervene in takeovers that could harm national security.
The proposed acquisition by Canyon Bridge, a firm secretly backed by Beijing-controlled Yitai Capital, had raised alarm among security experts. Former MI6 deputy head Nigel Inkster warned that Britain lacks a clear policy on China and called for greater scrutiny of such deals to protect military secrets.
Lotus Cars, based in Norfolk, is a renowned sports car manufacturer. Critics argued that the takeover could lead to Chinese control over sensitive automotive technology, potentially enabling the incorporation of hidden surveillance features. The US had previously blocked Canyon Bridge from buying an American chipmaker on similar grounds.
Business Secretary Kwasi Kwarteng confirmed the block, stating that the government would not hesitate to intervene when necessary to safeguard national interests. The decision has been welcomed by MPs and industry experts who had urged caution over Chinese investments in strategic sectors.
