Labour slammed for handing more control of UK infrastructure over to China

The Government is facing mounting pressure to act after one of Britain's biggest mining firms agreed to sell its nickel operations to a Chinese state-controlled company, despite repeated warnings from UK intelligence agencies about Beijing's growing influence over critical minerals.

Anglo American's £500 million sale of its Brazilian ferronickel operations in Brazil to MMG Singapore, whose largest shareholder is China Minmetals, will hand Beijing greater control over a resource vital to the UK's defence, clean energy and industrial sectors.

Nickel is used in electric vehicle batteries, aircraft and submarine components, and is classed as a strategic mineral by both the US Department of Defense and the EU Commission.

The deal comes just weeks after British security agencies confirmed Chinese espionage operations targeting Parliament and Whitehall, and months after the Government itself declared critical minerals a matter of national security.

Now MPs and experts are accusing ministers of allowing Britain's defences to be weakened by failing to put in place safeguards to stop hostile regimes from controlling vital global supply chains.

Jack Rankin, MP for Windsor, said: "We've seen the lengths to which China is willing to go in order to control global supply chains. Any British company selling strategic mineral assets to a Chinese state-controlled buyer while our own intelligence services warn of hostile activity is reckless, and I urge Anglo American to think very hard before doing so."

The sale, agreed in February 2025, is still under review by Brazil's competition authority, after a rival company filed a complaint. But regulators in the EU have already raised national security concerns about MMG's ownership structure.

Experts say the deal should serve as a wake-up call to ministers who have repeatedly promised to strengthen the UK's resilience against Chinese interference.

Theo Zenou, a research fellow at the Henry Jackson Society, said: "Anglo-American is a public corporation, and its primary responsibility lies with maximising shareholder value. Company leaders made the decision that selling its nickel business to a company partly owned by a Chinese state enterprise is good for business.

"But what should not be forgotten is the geopolitical context. For decades now, the Chinese government has methodically cornered the mineral market. To hand more control of global minerals to an enterprise connected to the Chinese state is an own goal for Western strategic interests.

"This sale should therefore be a wake-up call for Western governments that they must do more to safeguard and boost their critical mineral industry."

China has tightened export controls on key resources, requiring government approval for outbound shipments, while the US and Australia have signed new partnerships to reduce dependence on Chinese-sourced minerals.

Yet Britain, despite labelling critical minerals a national priority, has no equivalent restrictions in place.

Meanwhile, Anglo American is seeking regulatory approval in China for its own $70 billion merger with Canada's Teck Resources, a move that further underlines Beijing's growing leverage over global resource markets.

A Government spokesperson said: "Securing our supply of critical minerals, including nickel, is vital for our industrial strategy, economic growth and clean energy transition. We're working with UK industry and G7 partners to develop plans that will reinforce our supply chains for the long term, increase the resilience of our economy and drive forward our Plan for Change."

However, critics say such assurances ring hollow while British firms are free to sell strategic mineral assets to Chinese state-backed buyers, leaving Britain increasingly reliant on a regime its own intelligence services have identified as a hostile threat.