The UK government’s recent takeover of the Scunthorpe steelworks has reignited national debate over Chinese investment in Britain’s economy, amid growing security concerns.
The Scunthorpe plant, previously owned by China’s Jingye Steel, was taken under government control following claims that its Chinese owners intended to shut down its two blast furnaces. Allegedly, Jingye planned to repurpose the rolling mills to process imported Chinese steel — a move critics say would undermine domestic steel production and jeopardize national interests.
This development has turned the spotlight once again onto the broader issue of Chinese economic involvement in the UK, particularly in strategic sectors such as energy, transport, and infrastructure.
Official figures from the Office for National Statistics indicate Chinese investment in the UK stood at £4.3 billion in 2023 — a relatively small portion of the £2 trillion total foreign investment. However, experts warn this may understate the actual level of Chinese involvement due to opaque ownership structures and the reporting of investments via intermediary countries.
Independent estimates by the American Enterprise Institute suggest Chinese investment in the UK between 2005 and 2024 totals £82 billion, making the UK the third-largest global recipient of Chinese investment after the US and Australia.
Chinese companies hold stakes in several high-profile British assets. These include a 10% stake in Heathrow Airport by the China Investment Corporation, and majority ownership of UK Power Networks and Northumbrian Water by Hong Kong magnate Li Ka-shing’s conglomerate. In the energy sector, Chinese state-backed China General Nuclear Power Group holds significant shares in the Hinkley Point C nuclear power station and an even larger stake in the proposed Bradwell B site in Essex.
The Chinese footprint also extends into renewable energy and electric vehicles. Huaneng, a state-owned firm, built and runs the Minety battery storage site in Wiltshire, while Geely Auto owns the London Electric Vehicle Company. Chinese companies have also invested in offshore wind, including a 25% stake in Scotland’s Beatrice wind farm.
Consumer brands are not exempt — Greene King pubs and Wolverhampton Wanderers football club are both under Chinese ownership. Furthermore, Chinese firms own major commercial real estate, including London’s landmark Leadenhall Building.
Security experts remain divided on the implications. Some, like Grace Theodoulou of the Council on Geostrategy, cite concerns over potential espionage and geopolitical leverage — particularly if Chinese-owned infrastructure could be weaponized during a crisis, such as a Taiwan conflict. These concerns echo past controversies, including Huawei’s removal from the UK’s 5G network over similar fears.
However, others, including Professor Giles Mohan of the Open University, argue that most Chinese investments are commercial in nature. “Sabotaging infrastructure would damage their own assets. These are profit-driven firms, not geopolitical pawns,” he said.
Still, the Scunthorpe case has prompted renewed calls for vigilance and stricter scrutiny of foreign ownership in critical national infrastructure.
