A deal to provide robot vision technology to a Chinese company has been shut down using UK national security law.

The deal would have seen intellectual property developed by the University of Manchester, dubbed SCAMP-5 and SCAMP-7, licensed to Chinese company Beijing Infinite Vision Technology.

According to a funding proposal, the technology uses “tightly integrate novel sensing and processing hardware, together with vision, navigation and control algorithms, to enable the next generation of autonomous robots”.

Furthermore, the proposal adds that the system utilises a bespoke ‘vision chip’ to differentiate the device from conventional image sensors.

However, the UK Government intervened to block the deal, citing national security concerns. The National Security and Investment (NSI) Act 2021 gives the Government the power to block corporate transactions should it risk impinging on the UK’s national security.

Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng signed the final order, which warned that “there is potential that the technology could be used to build defence or technological capabilities which may present national security risk to the UK” should the IP transfer take place.

According to the Government, Beijing Infinite Vision Technology has links to the Chinese state.

In a statement, the University of Manchester said: “We have thorough internal processes in place to look at proposed international agreements. There were followed in this case and, in line with legislation, we voluntarily referred this agreement to the UK Government.”

Recommended

• Meet 10 exciting Scottish fintech companies
• Instagram, TikTok and YouTube now the top news sources for UK teens
• Edinburgh-based video tech firm Ajenta calls in liquidators

A similar investigation under the NSI Act took place last year when the Government intervened in a proposed sale of the UK’s largest microchip factory.

Under the deal, Newport Wafer Fab would have been sold to Nexperia, a company controlled by Chinese parent with links to the Chinese state.

The security investigation was launched amid growing pressure around concerns that the deal could be a threat to British interests. The deal, critics said, could have eroded the UK’s industrial resilience.

A final decision on the deal has been repeatedly delayed, with a decision expected in September.

However, the University of Manchester deal marks the first time the legislation has successfully stopped a deal. Currently, 17 agreements have been placed under investigation, with 14 still awaiting a final decision.

The act requires businesses to notify the UK Government Business Department should an investor take a stake worth over 25%, or otherwise acquiring some control over the company, if it is involved in one of the 17 sectors covered by the act.

As such, there are concerns that the act could stifle investment in startups.

Jock Millican, Chair of LINC Scotland and Director of Equity Gap, previously warned that the wording of the law risks starving viable companies of angel investment and reducing confidence.

And in a statement from former Minister for Universities, Science and Innovation Jo Johnson, he warned that tense relationships between China and the West represent a growing challenge for higher education institutions.

“Our universities need to prepare for a geopolitical shock that sees a security grid come down on many more of their activities, including knowledge partnerships with China,” he warned.

“Academia becomes a battle-space when the geopolitics turns sour, and definitions of national security become far more sweeping.”

Get the latest news from DIGIT direct to your inbox

Our newsletter covers the latest technology and IT news from Scotland and beyond, as well as in-depth features and exclusive interviews with leading figures and rising stars. 

To subscribe, click here.