MINISTERS have blocked the Chinese takeover of a British defence company in a new military secrets row.

In a move that risks infuriating Beijing, Business Secretary Greg Clark stepped in this week to halt the purchase of Northern Aerospace Limited.

4 Business Secretary Greg Clark has halted the purchase of Northern Aerospace Limited by a subsidiary of the Chinese giant Shaanxi Ligeance Mineral Resources Credit: Rex Features

4 His action on 'national security grounds' was on the urgent advice of Defence Secretary Gavin Williamson Credit: Rex Features

His action on “national security grounds” was on the urgent advice of Defence Secretary Gavin Williamson, officials confirmed last night.

The UK firm makes systems and wing parts for RAF and US Air Force planes, including the Eurofighter Typhoon and jumbo C-17 transport jet, as well as a range of unmanned drones.

It was about to be bought by a subsidiary of the Chinese giant Shaanxi Ligeance Mineral Resources.

But defence bosses raised serious fears that the sale would allow the Chinese government access to a host of sensitive design secrets.

4 A Government source told The Sun: 'We’re working on the adage that if [the Chinese] can’t steal it, they’ll try to buy it' Credit: AFP or licensors

As well as using them to improve their own jets, Beijing generals could exploit the knowledge to put US and British pilots at greater risk of being shot down.

A senior government source told The Sun: “Northern Aerospace Limited’s back catalogue is a veritable treasure chest to Beijing, so its sale to a Chinese owned firm flashed up a lot of red lights.

“We’re working on the adage that if they can’t steal it, they’ll try to buy it.”

4 The UK defence firm makes systems and wing parts for RAF and US Air Force planes as well as a range of unmanned drones Credit: Getty Images - Getty

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A full report into the takeover’s security ramifications will now be drawn up by a watchdog.

A Business Department spokesman said last night: “The Business Secretary has issued a public interest intervention notice on the grounds of national security.

“This requires the Competition and Markets Authority to investigate and report on the proposed sale of Northern Aerospace to Gardner Aerospace.

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“This is a statutory process we have followed a number of times before to ensure national security implications of a proposed sale are fully assessed and accounted for.”

The development comes a week after The Sun revealed that a former Rolls-Royce engineer was arrested amid fears of a Chinese plot to steal secrets of the new £100million RAF stealth fighter jet.

Intelligence experts now rate China’s military and economic growth as the biggest security threat to Britain over the longterm.

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