China warns UK to treat Chinese investors fairly or face consequences
- The UK government took control of British Steel to prevent its shutdown due to a lack of raw materials.
- China urged the UK to treat Chinese investors fairly in light of increasing concerns over investment security.
- The intervention highlights ongoing tensions between the UK and China regarding foreign investments in critical industries.
On April 13, 2025, the UK government took emergency measures to intervene in British Steel, a company owned by the Chinese Jingye Group since 2020. This move followed concerns that the company might shut down its operations, critically impacting the domestic steel production necessary for construction and railroads in the UK. The British Parliament authorized the nationalization of the company, which has faced challenges in securing raw materials for steelmaking, particularly iron ore and coking coal, needed to keep its furnaces operational. Amidst this crisis, China's government expressed its concern regarding the treatment of Chinese enterprises in the UK. The Foreign Ministry of China stated that a fair approach was essential for maintaining investor confidence. The spokesperson, Lin Jian, cautioned against politicizing economic cooperation, emphasizing that such actions could deter future Chinese investments in the UK market. The urgency of the situation was highlighted as the UK government hurried to prevent the closure of blast furnaces, which would be costly and complicated to restart. In recent days, British Steel appointed a new executive team, including Allan Bell and Lisa Coulson, to stabilize operations and ensure a dedicated workforce at Scunthorpe's steelworks. The government has confirmed that shipments of the necessary raw materials have started arriving, allowing operations to continue temporarily while they explore long-term solutions and potential private investments in the steel industry. However, there remains a broader debate over Chinese investment in key British infrastructure, with some politicians advocating for stricter regulations and a more cautious approach given national security concerns. The crisis surrounding British Steel has ignited discussions among both Labour and Conservative Party members regarding the role of foreign investments in critical industries. Former Defence Secretary Gavin Williamson and others have voiced the need for a careful assessment of such investments to protect the UK's strategic interests. Overall, this situation reflects ongoing tensions between the UK and China regarding economic cooperation and investment practices, and it underscores the delicate balance required to maintain industrial capabilities while managing geopolitical relationships.