There are worries that the Chinese owner of Imagine Technologies has renewed efforts to switch ownership of sensitive security software to agencies managed by using China.
Lawmakers worry the coronavirus crisis is diverting interest from controversial technology transfers.
The worry is that networks within the UK, Europe and the US can be compromised.
The Chair of the Foreign Affairs Select Committee stated he become concerned that generation developed by means of Imagination Technologies, primarily based in Hertfordshire, may be used to exceptional music the design of so-known as "backdoors" into strategically important digital infrastructure.
"The world has modified and agencies - especially tech businesses - are at the frontline," stated Mr Tugendhat.
"Whoever writes the code, writes the policies for the arena, greater than any law exceeded by using bureaucrats. There's no point in taking returned manage from Brussels, most effective handy it over to Beijing."
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Imagination Technologies was acquired by means of a US-based totally but Chinese state-owned investment firm called Canyon Bridge in September 2017, that is in flip owned with the aid of a Chinese kingdom-owned investment fund known as China Reform.
Mr Tugendhat said Theresa May's authorities authorized the purchase on the premise that Canyon Bridge was licensed and controlled by US regulation.
Since then it has moved its headquarters to the Cayman Islands and as such is no longer a US-managed entity.
Several senior executives, together with chief executive Ron Black, have stepped down recently citing issues approximately the future path and possession of the company.
Chief product officer Steve Evans and leader technical officer John Rayfield also resigned recently.
Mr Evans is known to have stated in his resignation letter: "I will no longer be a part of a business enterprise this is successfully managed by the Chinese government."
An strive by using China Reform to level a boardroom coup ten days in the past with the aid of appointing 4 of its very own administrators were aborted, but the name for proof comes amid renewed concerns that the Chinese proprietors of Imagination are making ready a clean try to transfer sensitive technology patents to mainland China.
As well as designing pix and virtual reality software program for pc chips, industry specialists say that Imagination additionally produces software program which could come across whether any weaknesses in sensitive digital networks - so-referred to as "backdoors" are the result of mistakes or goal.
The UK has already accepted the constrained use of Chinese-owned Huawei system within the creation of recent superfast 5G networks that promise to supply higher connectivity to be used in autonomous motors, utilities, power stations, the countrywide fitness service and plenty of others.
There isn't any inspiration that Huawei is without delay related to Imagination, or its ultimate proprietors - the state-owned China Reform investment fund.
The call for evidence comes a day after EU opposition chief Margrethe Vestager warned that groups throughout the EU - lots of that have been or are being pushed the edge of financial disaster by way of the monetary results of Coronavirus - are prone to takeover from Chinese agencies.
In the United Kingdom, the Treasury is considering plans for the kingdom to take possession stakes in heaps of businesses, to prevent mass bankruptcies of businesses unable or unwilling to tackle greater debt.
The situation is delicate as many EU international locations are gratefully accepting donations of virus-fighting gadget from China. The U. S . A ., which appears to be "first in - first out", is now rising from a crisis from which it bore the initial brunt.
