By GREG HEFFER, POLITICAL CORRESPONDENT Published: 11:34 BST, 14 August 2025 | Updated: 11:39 BST, 14 August 2025
US politicians have warned Labour that selling Britain's biggest water firm to a Chinese-owned firm would be a 'national security threat'.Hong Kong's CK Infrastructure Holdings (CKI) has emerged as a leading contender to take over debt-laden Thames Water.The Government is preparing for the potential collapse of the troubled water company, with ministers having appointed insolvency specialists to step up planning.FTI Consulting has been brought in as an administrator in the event Thames Water fails to secure funding from lenders.Contingency plans could see the company placed into a special administration regime.It is reported that such action would see Thames Water taken into temporary public ownership with much of its £16.8billion debt wiped out.This would then pave the way for it to be sold off to CKI, which already owns Northumbrian Water and UK Power Networks.But members of the US Congress have expressed concerns about links between CKI and the Chinese state. Hong Kong 's CK Infrastructure Holdings (CKI) has emerged as a leading contender to take over debt-laden Thames Water Environment Secretary Steve Reed has been urged to rule out the sale of Thames Water to a Chinese firmA spokesman for Congress's select committee on China told The Times: 'The Chinese Communist Party (CCP) has a long history of using corporate fronts... to gain strategic control over foreign infrastructure, from ports to utilities.'That's not just an economic issue, it's a national security threat.'We stand with the UK and all of our allies in recognising the risks posed by CCP-linked investments in critical infrastructure.'Whether it's the Panama Canal or Thames Water, Chinese firms tied to Beijing's legal and financial system should not be anywhere near assets that underpin the security and resilience of our nations.'Sir Iain Duncan Smith, the former Conservative leader, also warned against allowing CKI to gain a stake in Thames Water.He told Times Radio it would be 'stupidity on stupidity' and a 'major national security risk'.'What are we going to do? Keep rewarding them (China) for being absolutely awful and breaking every rule and threatening us,' Sir Iain added.'You're about to hand to a country that is a threat, a greater power over our national infrastructure - which should be a big security problem'Liberal Democrat MP Tim Farron, his party's environment spokesperson, urged Environment Secretary Steve Reed to rule out the sale of Thames Water to a Chinese firm.'The Government is guilty of shocking weakness when it comes to China,' he said.'First British Steel, then the super embassy, and now the sale of a big chunk of our critical water infrastructure. It's time they took our critical national infrastructure more seriously.'It is unthinkable that such vital infrastructure as our own water supply should be sold by the Government to a Chinese firm.'Both the Department for Environment, Food & Rural Affairs and CKI have been contacted for comment.
