London on Wednesday ordered a Chinese company to sell its stake in a leading British semiconductor maker, which is likely to have sparked opposition from Beijing, writes AFP.

“Following a detailed national security assessment, the Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps) has decided to issue a final order requiring Nexperia to sell at least 86% of Newport Wafer Fab to protect against potential national security risks. “, the government spokesman said in a statement.

In his official directive, Shapps noted that there was a risk of “technology and know-how (…) that could compromise British capabilities.”

Dutch company Nexperia, owned by Chinese smartphone giant Wingtech, completed the acquisition of Newport Wafer Fab in July 2021 for an undisclosed amount.

The announcement came amid increasingly strained relations between London and Beijing, as well as scrutiny of overseas investments by Chinese companies.

In 2020, London banned Chinese telecoms giant Huawei from deploying 5G network equipment in the UK after the US raised concerns about Chinese espionage, angering Beijing.

British Prime Minister Rishi Sunak came to power last month taking a tough stance on China while expressing a desire to trade with the country.

He has scheduled bilateral talks with Chinese President Xi Jinping at the G20 summit in Indonesia this week.

But they were canceled when Western allies called a hasty meeting in Bali in response to a Russian missile strike on Ukraine and a missile strike on NATO member Poland.