UK Eases Foreign Investment Scrutiny With Focus on Water, Chips

The UK is narrowing the scope of its national security regime surrounding foreign investments to ease the burden on most businesses while focusing scrutiny on the sectors most vulnerable to malign foreign interference, including water, semiconductors and critical minerals.

Changes to the National Security and Investment Act due to be announced Tuesday will lift requirements for businesses operating in 17 sensitive sectors to notify the government about certain types of internal reorganizations and the appointment of liquidators, according to people familiar with the matter.

The change comes after an internal review found the system, introduced in 2022 by the previous ...