China issued a stern warning to the UK government on Monday, urging fair treatment for the Chinese owners of British Steel following the UK’s recent takeover of the company. The warning came two days after the UK government, using emergency powers, took control of British Steel and its Scunthorpe steelworks, which have been owned by Chinese conglomerate Jingye Group since 2020.
The Chinese Foreign Ministry expressed concerns that the UK’s actions could harm investor confidence in the country, calling on the British government to ensure the fair and just treatment of Chinese enterprises operating within its borders. “We hope the British government treats Chinese enterprises investing and operating in the UK fairly and justly, protects their legitimate rights and interests, and avoids politicizing and over-securitizing economic and trade cooperation,” said Lin Jian, a spokesman for China’s Foreign Ministry. “Such actions could affect the confidence of Chinese enterprises in investing and cooperating in the UK.”
The move by the UK government was prompted by concerns over the future of British Steel, which had faced operational difficulties after Jingye stopped ordering the iron ore and coking coal required to keep the steelworks running. The government stepped in when it became clear that the company was at risk of closing its last two blast furnaces, which produce “virgin” steel from raw materials—a crucial product for the construction and railway sectors in the UK.
On Saturday, UK Parliament passed emergency legislation granting the government the authority to take control of the steelworks in Scunthorpe. Although Jingye still retains ownership of British Steel, the UK government now manages day-to-day operations. Prime Minister Keir Starmer’s spokesman, Dave Pares, stated that while Jingye remains the owner, nationalisation of the steelworks remains a “likely option in the short term,” with the government aiming to find a private investor for the plant in the longer term.
In a move to stabilize operations, British Steel announced the appointment of a new executive team, including longtime executives Allan Bell and Lisa Coulson as interim CEO and chief commercial officer, respectively. Bell, who has worked at the Scunthorpe works for over 14 years, expressed his priority to maintain steel production at the plant. “Our immediate priorities are securing the raw materials we need to continue blast furnace operations, ensuring we have the dedicated personnel to run those furnaces, and maintaining the highest levels of health and safety for our workforce,” Bell said.
The government’s intervention was seen as critical to preserving Britain’s ability to produce high-quality steel. Once blast furnaces are shut down, it becomes difficult and expensive to restart them, which could lead to the UK losing its capacity to produce essential steel products. Meanwhile, other British steelmakers are transitioning to electric arc furnaces, which use scrap metal rather than raw materials.
Pares confirmed that shipments of essential materials, such as iron ore pellets and coking coal, have arrived at the port in Immingham and are expected to reach Scunthorpe soon, alleviating immediate concerns over the plant’s operation. The government remains confident that the plant will be able to continue production in the short term.
