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He also pointed out how Beijing actively promoted high-tech innovation - in 2024, it had slashed $361bn in taxes and fees for high-tech firms, including $80.7bn in research and development deductions.

"We cant breach those agreements so we have to eat the cost of the tariffs and make trade offs within our own companies. Typically that will be in reduction of staff or research and development and I predict R&D will come first. That's a disappointing outcome."

"So I think what this administration is saying is we want both. We want the means of production and we want the research and development intellectual property generation."

"The UK's advantage is slipping. If you look at the numbers there is disinvestment in research and development. It's been on a steady decline."

Last year Business Finland, a government agency that promotes investment and innovation, launched a new defence and digital resilience programme which is directing €120m towards supporting research and development initiatives from small businesses and startups.