It shall be stated in the article that according to the US Legislation, America will not only exclude UK companies selling arms breaching the EU embargo to China, from their market but the US will also stop the exchange of military expertise and technology towards the EU. Despite the fact that the EU Embar­go has no legally binding force, the export of all high technology weapons from UK companies to China will not be allowed by the Government’s arms export control of the UK.

To circumvent the UK arms export and so as to preserve their intellectual property, the companies of the UK would have to own their private subsidiar­ies in China. The aim of the Chinese government, recording to a PEST analy­sis, is to gain this technology in order to become self-sufficient and therefore would not allow this kind of investments.