LONDON (AP) — The U.K.’s business secretary announced on Sunday that Chinese companies looking to invest in key sectors in the country will face a rigorous evaluation process to ensure a high level of trust. This statement comes after the government took control of Britain’s final steel factory, owned by China’s Jingye Group since 2020. The company’s lack of cooperation in discussions with the government regarding the future of the unprofitable steel works in Scunthorpe led to the decision to intervene.
It was revealed that Jingye Group was unwilling to consider financial assistance from the government and was planning to close the blast furnaces while keeping the profitable steel mill operations supplied from China. Business Secretary Jonathan Reynolds, in an interview with Sky News, expressed concerns about bringing Chinese investment into the U.K., particularly in the sensitive steel sector.
In response to Jingye’s actions, Prime Minister Keir Starmer called lawmakers back to Parliament to pass legislation preventing the closure of the blast furnaces. This move grants Reynolds the authority to oversee British Steel’s operations, ensure employee wages, and secure essential raw materials to sustain production.
The closure of the blast furnaces would have had significant implications for the U.K.’s steel industry, potentially making the country reliant on foreign sources for steel production. Reynolds emphasized the importance of securing raw materials to maintain operations and preserve the country’s steelmaking capacity.
