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China’s foreign ministry has urged Britain to treat its companies fairly and avoid politicising trade between the two countries after the UK government seized control of Chinese-owned British Steel.
“We hope the UK government will treat Chinese-invested enterprises in the UK fairly and impartially, protect their legitimate rights and interests, and avoid politicising or overstretching the concept of security in economic and trade co-operation,” said Lin Jian, a spokesperson for China’s ministry of foreign affairs, at a Monday briefing in Beijing.
Otherwise, Lin added, “it could undermine Chinese companies’ confidence in investing and co-operating in the UK”.
The comments came after UK ministers on Saturday passed emergency legislation to take control of British Steel and ensure its two blast furnaces would keep operating.
Officials have been working with local management to secure the necessary raw materials after talks with Jingye Group, British Steel’s Chinese parent, which has owned the company since 2020, broke down last week.
A shipment of coal, needed to fire up the furnaces, was docked in the port of Immingham in Lincolnshire on Sunday, having been ordered but not paid for by Jingye, according to two people briefed on the situation. Closing British Steel’s two furnaces at Scunthorpe would leave the UK as the only G20 country without the ability to make steel from scratch.
The British Steel saga has triggered a growing backlash against Chinese investment in the UK economy. Business secretary Jonathan Reynolds said on Sunday there would be some areas where the UK government would not welcome Chinese investors.
“I think we have got to be clear about what is the sort of sector where, actually, we can promote and co-operate, and ones frankly where we can’t.”
Jingye did not respond to multiple requests for comment regarding the potential UK government takeover of British Steel.
British Steel said on Monday it had appointed Allan Bell, its chief commercial officer, as interim chief executive with immediate effect. The appointments were signed off by Reynolds to endure “consistent and professional leadership at British Steel’s Scunthorpe site”, according to the company.
