China ‘strongly dissatisfied’ with nationalisation of British Steel

The Department for Business and Trade said the move was essential to maintain steel production at British Steel’s site in Scunthorpe. Photograph: Christopher Furlong/Getty Images View image in fullscreen The Department for Business and Trade said the move was essential to maintain steel production at British Steel’s site in Scunthorpe. Photograph: Christopher Furlong/Getty Images China ‘strongly dissatisfied’ with nationalisation of British Steel Move dealt ‘severe blow to Chinese companies’ confidence in investing in the UK’, says Ministry of Commerce China’s government has said it is “strongly dissatisfied” with the decision to nationalise British Steel this week, 15 months after the UK government stepped in to prevent the closure of its steelworks in Scunthorpe and the loss of 4,000 jobs. On Thursday, British Steel was brought under public ownership to protect “the future of steel production”, the government announced. The Department for Business and Trade said the move was essential to maintain steel production at the company’s site in Scunthorpe, Lincolnshire, to protect the company’s future and UK supply chains. However, China’s Ministry of Commerce (Mofcom) said the move dealt “a severe blow to Chinese companies’ confidence in investing in the UK”. British Steel was previously owned by the Chinese company Jingye. The Labour government stepped in with an emergency recall of parliament to prevent the closure of British Steel in April last year, after Jingye threatened to walk away without taking steps to preserve the blast furnaces in Lincolnshire. A Mofcom spokesperson told the Chinese media outlet Global Times: “The UK side, disregarding Jingye Group’s important contributions to the British economy and society, forcibly took control of British Steel and subsequently nationalised the company in the name of national security, seriously undermining Jingye’s legitimate rights and interests and dealing a severe blow to Chinese companies’ confidence in investing in the UK. “China firmly opposes and is strongly dissatisfied with the UK government’s decision. “China will closely follow developments, support Chinese companies in safeguarding their rights through legal means, and take strong measures to firmly protect the interests of Chinese companies.” Jingye has argued in its UK accounts and in statements on its WeChat social media account that British Steel was a valuable asset worthy of large compensation even though it had been prepared to walk away and let it fail. The Mofcom spokesperson reportedly said the UK government should “abide by relevant international rules, earnestly fulfil its obligations under the China-UK bilateral investment treaty, treat Chinese companies operating in the UK in a fair and impartial manner, and fully protect their legitimate rights and interests”. After Thursday’s nationalisation a new leadership team was appointed to focus on stabilising the business and turning it into a “commercially sustainable, low-carbon