Chinese Bid for Thames Water Sparks Outcry Over Critical Infrastructure Fears

Labour is facing mounting pressure to block the takeover of Thames Water by Hong Kong-based CK Infrastructure CKI as concern intensifies over placing one of Britain’s most vital utilities in foreign hands. On Sunday, senior Conservative MPs sounded the alarm at the prospect of CKI acquiring Thames Water which supplies 16 million customers across London and the South East warning that control by a group with close ties to China could imperil national security.

CKI’s chairman has written to Ofwat the industry regulator to reassert the company’s intent to invest heavily in the indebted supplier stating they were prepared to commit whatever it takes. The investment proposal called for the temporary nationalisation of Thames Water to ensure a fair process suggesting the CKI plan could be tested against rival creditor led rescue efforts.

Sir Iain Duncan Smith the former Conservative leader labelled the idea of granting CKI ownership as madness saying such a move handed the keys to the kingdom to an adversary capable of manufacturing a supply crisis for millions of Britons. He stressed that no Chinese company should control critical national infrastructure urging the government to enforce broad divestment across sensitive sectors.

The episode comes on the heels of escalating scrutiny of Chinese involvement in the UK economy following the collapse of an alleged espionage trial the theft of confidential government information and planned expansion of the Chinese embassy in London—a location itself fraught with security worries.

Dominic Cummings former adviser to Boris Johnson also entered the fray highlighting previous occasions where Chinese entities were permitted access to data infrastructure supporting agencies such as MI6 and the Cabinet Office. Echoing wider anxieties critics argue that the pattern of dependency on foreign capital threatens Britain’s autonomy and diplomatic leverage.

CKI already owns Northumbrian Water alongside gas and electricity networks connecting it to swathes of the UK’s infrastructure grid. While there is no evidence of wrongdoing by CKI the company’s parent CK Hutchison has previously faced restrictions in mergers and acquisitions involving vital British assets including conditions attached to its mobile business partnership with Vodafone.

The Thames Water board meets this week to confront both an impending deadline to challenge Ofwat’s funding settlement and an urgent quest to assemble a creditor led rescue package that may require writing down billions in debt. A government spokesperson reaffirmed that protecting the national interest remains the priority and contingency measures including special administration are ready should Thames Water’s finances deteriorate.