Ming Yang – one of the world’s largest wind turbine manufacturers – had been looking to build the UK’s largest wind turbine manufacturing facility at Ardersier near Inverness but the plans will not be progressed, The Scotsman first reported.

There were concerns about whether the firm had links to the ruling Chinese Communist Party (CCP), and around Chinese laws meaning companies in the country are obliged to work with security services.

Previously, the Scottish Government had lobbied Ming Yang to build the factory, but First Minister John Swinney said it was “dependent” on national security decisions from the UK Government.

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In response to Labour’s decision to block the development, a Ming Yang spokesperson told The Scotsman: “We are disappointed by the UK Government’s decision not to allow Ming Yang’s world-leading technology to be used.

“The decision misses a significant opportunity to increase competition in the capacity-constrained wind turbine market, delays Ming Yang’s plans to invest £1.5bn in Scotland in onshore wind turbine production – creating up to 1500 jobs – and risks energy prices staying higher for longer for British households and industry at a time of global energy shocks.”

They added: “We will continue to engage constructively with the UK Government, including on the important topic of national security, and remain committed to supporting the UK’s mission to become a clean energy superpower.

“We continue to believe in the long-term potential of the UK market, and our planned activities remain unchanged.”

Labour Energy Minister Michael Shanks was previously asked about the Ming Yang plans at Westminster (Image: BBC)

A Department for Energy Security and Net Zero spokesperson said: “Industry have sought our view on the use of these turbines in British waters and in our energy system. After careful consideration, Government’s view is that we cannot support the use of them in UK offshore wind projects.

“We will always act to protect our national security, and we are committed to strengthening and prioritising resilient and sustainable offshore wind supply chains.

“We welcome investment from China where it’s in our national interest – as demonstrated by significant inward investment during the Prime Minister’s recent visit to Beijing.

“We will continue to take a consistent, long term and strategic approach to our relationship with China – cooperating where we can, whilst never compromising on security and resilience.”

In January, Ming Yang’s head of UK and European operations Aman Wang said the company had a “shortlist of ports” lined up if the Ardersier site was not approved, adding that “the five are on the continent”.

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Responding to the news, local MP and SNP Westminster energy spokesperson, Graham Leadbitter said: “This has been on the desks of UK Government officials for over 18 months – their dithering over whether to approve this or not will have far-reaching consequences that, once again, will be left for Scotland to deal with.

“Rather than making a quick decision, they’ve left hundreds of much-needed energy jobs in limbo, and have spooked investors who’ll now want to think twice before considering dealing with this irresponsible and unbothered UK government.

“Scotland’s energy sector has been hung out to dry by this Westminster Labour government who’ve overseen thousands of job losses in the sector mainly in the north and North East of Scotland.

“We need to retain as much of the skills and experience that’s been built up here over the decades as possible if we’re to achieve a Just Transition for our world-leading energy sector.

“For that to happen we need investment and certainty. Instead, Labour has only offered dither and delay.”

Last year, Conservative shadow minister Greg Smith challenged the UK Government over the Ming Yang plans, saying: “Our security services have warned us about the risks of Chinese state-sponsored hackers trying to infiltrate and destroy energy systems in the west, and hidden kill switches have been found in Chinese solar installation technology in the United States.

“Can the minister provide the House with a very clear assurance that neither Ming Yang nor the Chinese state will be able to remotely control our energy infrastructure. Yes or no?”

Energy Minister Michael Shanks responded: “First, I will take no lessons from the party that brought Chinese investors right into building our nuclear power station … but every single decision and investment obviously has to pass stringent national security tests.

“I will not engage right now in what those tests will be, but we will say very clearly that no decision we make will ever compromise our national security.”

Earlier in March, Scottish Labour MP Joani Reid stood back from the party after her husband was arrested amid an investigation into Chinese interference in UK politics.

On Wednesday, Danish firm Vestas announced plans to create 500 skilled jobs at a new £220 million factory in Scotland. However, the investment in the factory is “conditional on securing sufficient UK-based orders”.