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China condemns UK plan to nationalise British Steel
The UK says the move will protect jobs and a vital national capability, while China argues it infringes on Jingye's investment rights and could strain ties.
China has condemned the UK government’s decision to nationalise British Steel, saying it is firmly opposed to the move and dissatisfied with London’s actions. In a statement carried by BBC Business, China’s commerce ministry said the decision seriously infringed on the rights and interests of Jingye, the firm’s owner, and undermined confidence for Chinese companies investing in the UK.
The UK took control of British Steel’s operations in Scunthorpe last year, though it remained owned by Jingye Group, and the latest step comes after Parliament passed legislation allowing public ownership where a public interest test is met. The UK government said bringing the loss-making company into public hands would protect jobs and safeguard what it described as a vital national capability.
China called on Britain to fulfil obligations under the China-UK Bilateral Investment Treaty and criticised the action as taking control in the name of national security. BBC Business also notes the political timing, with the decision arriving as Andy Burnham is set to become prime minister, raising the stakes for how the incoming administration balances the economic benefits of UK-China ties.
The nationalisation gives the government power to decide the plant’s future while keeping blast furnaces running, but BBC Business reports it is costing more than a million pounds a day. Jingye is seeking compensation, after previously saying the business was losing £700,000 a day, and in March the UK National Audit Office said the Scunthorpe steelworks was costing about £1.3m per day.