Deputy Prime Minister, Oliver Dowden, will warn the UK needs to strengthen its economic defences against globalisation's "security risks" in a speech on Thursday.
Mr Dowden will reveal plans intending to enhance the UK's resilience to "economic security shocks" such as the spike in energy prices due to Russia's Ukrainian invasion. In his address, he will tell the Chatham House think tank that "while the financial crash exposed the economic risks of globalisation, today's rising geopolitical competition is demonstrating the security risks behind such integration".
The Deputy PM will further highlight: "We must be clear-eyed that one of the great strengths of our system is its openness, but that also brings vulnerabilities. Covid and Russia 's war on Ukraine both laid bare the interconnectedness of global supply chains and the extent to which they can be exploited, such as Russia driving up the price of gas, and Chinese acts of economic coercion."
Dowden is set to present a review into export controls regarding emerging technologies and the potential risks from UK businesses investing abroad. Additionally, the Cabinet Office plans to release its response to a review of the National Security and Investment Act that was approved in 2021. This response will unveil plans to "fine-tune" the system, which includes a focus on critical minerals and semiconductors.
The Government has already utilised the Act to halt several deals, including a number of attempts by Chinese firms to gain control over assets in the UK's semiconductor industry.