Ugh. UK universities absolutely should not be shutting down research at the behest of China, but how is this terrorism? Seems like terrorism is back to being the bogey-man.
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An offence is committed if someone behaves in a way that "intends that conduct to materially assist a foreign intelligence service in carrying out UK-related activities," or in conduct likely to assist that service.
Sure. But it's not actually terrorism, is it? In fact, as worded, completely inoccuous activity seems to fall under the act - the definition of "UK-related activities" in the section includes literally any activity taking place in the UK. So intentionally helping set up a foreign embassy seems like it falls under the act.
Regardless, national security it may be, but terrorism it ain't.
They might all be busy arresting grannies with cardboard