The United Kingdom has banned the takeover of an electrical design company by a Hong Kong company due to national security concerns.

Super Orange HK had sought to buy Pulsic of Bristol.

The government stated, however, that instruments might be utilized “to strengthen defense or technology capabilities.”

This is the most recent effort to restrict Chinese engagement in British firms and technology.

Huawei was barred from the United Kingdom’s 5G infrastructure in 2020 due to national security concerns, which the company rejected.

The government is also investigating a Chinese-backed purchase of Britain’s largest semiconductor plant, Newport Wafer Fab.

The most recent attempt to acquire a company was thwarted by the National Security and Investment Act, which went into effect in January.

It grants the government the authority to examine and intervene in economic transactions to safeguard national security.

The Department of Business, Energy, and Industrial Strategy stated that Pulsic’s software may be used to “ease the construction of cutting-edge integrated circuits that could be utilized in the civilian or military supply chain.

It stated that the decision to deny the acquisition was “necessary and proportional” to protecting national security.

The Bristol, Newcastle, Tokyo, and San Jose-based company Pulsic have not yet responded to a request for comment.

Super Orange HK was unavailable for comment. The Chinese Embassy in the United Kingdom was reached out to for comment.

Liz Truss, a leading candidate for the Conservative leadership, has stated that Beijing’s “growing assertiveness” is a “grave security issue.”

“We must ensure that we do not export technologies that can be used against us. We have devised investment screening to ensure that we cannot acquire vital strategic assets “Wednesday, the foreign secretary addressed a leadership debate.

She has also stated that the United Kingdom should crack down on Chinese-owned businesses like the social media app TikTok.