UK expands economic intervention due to national security

The British government said the National Security and Investment Act (NSI) has been approved, which gives the state new powers to intervene in takeovers of companies and investors in 17 key sectors of the economy.

The law went into effect yesterday (4) and according to the official statement the National Institute of Statistics is the biggest bang for the buck for the British national security system in 20 years. Ministers are allowed to extend their powers, enabling them to examine, supervise and intervene in the acquisitions made by any individual, company or investor where there may be harm or potential harm to the country’s national security.

Previously, the government had certain powers to block deals where a foreign-led acquisition could affect elements such as economic stability, media pluralism, and response to the pandemic. However, ministers will now be able to control businesses in various economic areas, which include artificial intelligence, robotics, technology, the civilian nuclear sector, quantum technology, transportation, and even defense space.

According to a statement by the Secretary of State for Business, Energy and Industrial Strategy, Kwasi Quarting, the UK is globally recognized as an attractive place for investment. “But we have always made clear that we will not hesitate to intervene when necessary to protect our national security,” Carting said.

The expansion of the law comes amid the acquisition of the British company ARM by the North American multinational Nvidia, for approximately $ 54 billion (306.7 billion Brazilian reals), which sparked great controversy in the United Kingdom.