MPs Warn of National Risk as Chinese-Linked Firm Pursues Thames Water Acquisition

[Social Media]

 

MPs Warn of National Risk as Chinese-Linked Firm Pursues Thames Water Acquisition

 

The British government’s perceived complacency toward Chinese investment in vital infrastructure could leave London “brought to its knees,” a group of cross-party MPs has warned. The alarm was raised following a bid by CK Infrastructure Holdings (CKI) Ltd—a company with ties to the Chinese Communist Party—for Thames Water, the UK’s largest water utility serving 16 million people in London and the South.

 

 

MPs are urging a full investigation into the bid under national security powers, warning that allowing CKI to gain further control over critical UK infrastructure could endanger not only public services but national sovereignty. “The trend is clear and alarming – Beijing is exerting ever greater direct control over CK Hutchison and related companies’ activities,” a letter from the group to Pat McFadden, the Chancellor of the Duchy of Lancaster, stated. “Any activity not in Beijing’s interests is regarded as a hostile act and cause for state intervention.”

 

 

CKI, based in Hong Kong, already holds a significant footprint in the UK, including ownership of the electricity distribution network in London, multiple gas networks across England, Wales and Northern Ireland, and Northumbrian Water. The consortium also owns a power station and 32 wind farms. Most recently, it secured a 49 percent stake in the Vodafone-Three merger, further expanding its influence in UK telecommunications.

 

 

The MPs’ concerns were compounded by recent events surrounding Jingye, a Chinese company that owns British Steel in Scunthorpe. The Government had to pass emergency legislation to keep blast furnaces operational amid accusations of industrial sabotage intended to push the UK into dependency on Chinese steel.

 

 

“Without power and safe drinking water, the capital would swiftly be brought to its knees,” the letter added, emphasizing the gravity of allowing CKI—already responsible for major utilities—to expand into Thames Water. “A national security assessment is particularly vital in the case of the capital, where the electricity distribution networks owned by CKI, and the water infrastructure CKI aspires to own through Thames Water, are both critical to the functioning of Government, the military and the security services.”

 

Victor Li Tzar-kuoi, CKI’s chairman, is a member of the 14th national committee of the Chinese People’s Political Consultative Conference, a body under the leadership of the Chinese Communist Party. His father, Li Ka-shing, owns both CKI and CK Hutchison, which controls assets such as infrastructure in the Panama Canal. Beijing previously reprimanded the business over its attempt to sell those operations to Blackrock, following criticism from then-President Donald Trump regarding Chinese involvement in the strategic waterway.

 

Despite these links, Ofwat, the UK’s water regulator, has indicated it would prefer CKI to remain part of Thames Water’s future discussions. However, the private equity firm KKR has already been named as the preferred bidder, meaning CKI’s role depends on that deal falling through.

Business Secretary Jonathan Reynolds highlighted the underlying concern, stating: “For any major Chinese industrial company, there are always direct links to the Chinese Communist Party.”

 

The MPs behind the letter—Sir Iain Duncan Smith, Labour’s Blair McDougall, SNP’s Chris Law, Liberal Democrat Layla Moran and Lord Alton of Liverpool—are pushing for the deal to be reviewed under the National Security and Investment Act. They cite CKI’s acquisitions since 2020, including Phoenix Energy and numerous renewable energy projects, as potentially threatening the resilience of UK infrastructure.

 

The letter comes amid the government’s efforts to bolster cybersecurity and infrastructure defences through the new Cyber Security and Resilience Bill. The National Cyber Security Centre recently labeled China as a “highly sophisticated and capable threat actor,” underscoring the broader strategic risks of such foreign ownership in Britain’s most critical services.

 

Related Topics:

Beijing's Influence: The Hidden Reach of China in Britain's Core Infrastructure

Reeves Warns Against Cutting Ties with China, Advocates for Stronger Economic Links

China accuses UK politicians of ‘arrogance’ in British Steel row

 

  Adpated by ASEAN Now from The Telegraph  2025-04-24

 

 

[JimHuaHin]

China is very active in trying to purchase (gain control of) critical global infrastructure.  This has been happening in all regions, especially over the past decade.

[JonnyF]

I'm surprised China would want to risk investing in the mess that the UK has become.

 

But I guess the two governments have a lot in common now. 

[Chomper Higgot]

Yet one more example of a utility that was privatized, asset stripped and run into the ground, with the added disaster of poisoning the nations rivers with sewage.

 

I doubt the Chinese could make a bigger mess of what Thames Water already is.

 

[SunnyinBangrak]

4 minutes ago, Chomper Higgot said:

 

 

I doubt the Chinese could make a bigger mess of what Thames Water already is.

 

I feel a "Hold my beer" meme coming along.

[Chomper Higgot]

18 minutes ago, SunnyinBangrak said:

I feel a "Hold my beer" meme coming along.

I hope that’s not beer made with water supplied by TW.

 

If so I suggest not drinking it.

[renaissanc]

Starmer and Co. seem to be stupid. "Derrrr ... the CCP just wants to help improve the water system ... derrrrr ... ma bwain herts!"

[andersonat]

"The MPs behind the letter — (the Conservative's) Sir Iain Duncan Smith, Labour’s Blair McDougall, SNP’s Chris Law, Liberal Democrat Layla Moran and Lord Alton of Liverpool — are pushing for the deal to be reviewed under the National Security and Investment Act."

 

Q: Which Administration was it that *sold* off the Water-Companies ? ... 

[newbee2022]

Where is the risk? Can't see any

[Photoguy21]

5 hours ago, JonnyF said:

I'm surprised China would want to risk investing in the mess that the UK has become.

 

But I guess the two governments have a lot in common now. 

I wonder if China had a hand in creating the mess? Starmer could be a useful tool to them

[tmd5855]

1 hour ago, Chomper Higgot said:

Yet one more example of a utility that was privatized, asset stripped and run into the ground, with the added disaster of poisoning the nations rivers with sewage.

 

I doubt the Chinese could make a bigger mess of what Thames Water already is.

 

Lived in Newbury, Berkshire, after privatisation all the old council/public land were fenced off, local fishing ponds private property.  Dividends to shareholders near reflect the losses made by the company, but, the share price and dividends generated bonuses for the board. 

The old gravel extraction pits visible from the M4 in the 90's/2000's all filled in with water (to resemble lakes), premium priced houses built all around the waterfronts.  How much did Thames Water get for that land with the obvious nod/wink to planning permission.

Just last April 2024, published accounts for Thames Water showed it were insolvent.  Water bills for my son is controlled by an escalator only going up and the occasional smelly tap water is hazard free.

 

Selling off state controlled utilities such as gas/electric/water and rail has brought higher prices and poorer services.  There is a financial and moral case for Thames as a bankrupt firm to be taken back into public hands.

 

I am 70 retired at 59 after working short of 40 years in the Merchant Navy and Oil & Gas, benefitted from Thatcher's actions, but, sadly my children and the UK are poorer off 

[Purdey]

7 hours ago, Social Media said:

CKI, based in Hong Kong, already holds a significant footprint in the UK, including ownership of the electricity distribution network in London, multiple gas networks across England, Wales and Northern Ireland, and Northumbrian Water. The consortium also owns a power station and 32 wind farms. Most recently, it secured a 49 percent stake in the Vodafone-Three merger, further expanding its influence in UK telecommunications.

With all this, they still haven't brought the UK to its knees. Hey, let's blame those bloomin' foreigners not ourselves.

[phil2407]

UK has sold its businesses to whoever over the years & allowed them tax breaks etc 

plus allowed individuals to buy businesses & private property & now the “persecuted “ individuals from France 

no wonder people from their own country pissed off 😠 

[klauskunkel]

So what if they buy it, the water is still in London, and if they want to use it for controlling, or extortion you just move your army in and take it over. You still have an army, right?

[coolcarer]

12 hours ago, Social Media said:

The British government’s perceived complacency toward Chinese investment in vital infrastructure could leave London “brought to its knees,” a group of cross-party MPs has warned. The alarm was raised following a bid by CK Infrastructure Holdings (CKI) Ltd—a company with ties to the Chinese Communist Party—for Thames Water, the UK’s largest water utility serving 16 million people in London and the South.

For god sake listen to the cross party MP’s on this. China’s reach and influence in the UK is already out of hand. 
 

The  cheeky bastards had the nerve not long ago to come out with this statement:

 

They accused UK politicians of “arrogance, ignorance and a twisted mindset” as it defended British Steel’s owner, Jingye

 

Don’t listen to the far left loons on this one. No purchase of Thames Water. 

[maxcorrigan]

18 hours ago, Photoguy21 said:

I wonder if China had a hand in creating the mess? Starmer could be a useful tool to them

Don't you mean useful idiot, much more fitting when it involves Starmer!

[Photoguy21]

5 hours ago, maxcorrigan said:

Don't you mean useful idiot, much more fitting when it involves Starmer!

I cant disagree with that but if China wants him they can have him. Just get him away from the UK.

[mrwebb8825]

Think they'll still let you lads walk around in your skirts and fuzzy hats?