Debate on foreign ownership of UK defence industries highlights concerns
As the UK looks to begin a new chapter in its history and develop new business ties following Brexit, the country’s defence industry will be a key element in the bid to increase inwards and outward trade and investment.
Unlike a number of its Western allies, the UK has long persisted with an open approach to foreign direct investment (FDI), rarely standing in the way of the acquisition of UK-based companies by overseas enterprises.
However, on rare occasions it does move to intervene, particularly when faced with a public backlash as seen in 2019 when US-based General Electric tried, unsuccessfully, to move its engine manufacturing capability from sites in the UK to France.
Rare exceptions aside, the UK is seen as a keen adherent to free market capitalism. The 2019 decision to permit the £4 billion ($5.3 billion) purchase of
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