China warns UK government to treat Chinese owners of British Steel fairly
LONDON (AP) — China has warned the U.K. government to treat the Chinese owners of British Steel fairly or risk undermining investor confidence in the country, two days after British authorities took control of the company.
China’s Foreign Ministry made the comment on Monday as government-appointed managers raced to prevent British Steel from shutting down the last two blast furnaces in Britain that make so-called virgin steel from raw materials.
Parliament on Saturday passed legislation authorizing the government to take control of the company and its Scunthorpe steelworks from Jingye Group, which has owned British Steel since 2020. Jingye still owns the company but British authorities have taken control of day-to-day operations.
“We hope the British government treats Chinese enterprises investing and operating in the U.K. fairly and justly, protects their legitimate rights and interests, and avoids politicizing and over-securitizing economic and trade cooperation, so as not to affect the confidence of Chinese enterprises in investing and cooperating in the U.K.,” Foreign Ministry spokeperson Lin Jian said during the weekly press conference in Beijing.
The U.K. government on Monday installed a new executive team at British Steel with the aim of ensuring “consistent and professional leadership” of the Scunthorpe works in northeastern England, British Steel said in a statement.
Two longtime British Steel executives, Allan Bell and Lisa Coulson, were named as the company’s interim chief executive and chief commercial officer. The appointments were approved by Business Secretary Jonathan Reynolds.
Bell, who has worked at Scunthorpe for 14 years, said his main goal was to ensure continued 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 in the statement.
Prime Minister Keir Starmer on Saturday took the dramatic step of recalling Parliament from its spring recess to pass emergency legislation authorizing the government to take control of British Steel. Authorities were concerned about the plant’s future after Jingye stopped ordering the iron ore and coking coal needed to keep the furnaces operating.
Once blast furnaces are shut down, it is difficult and expensive to restart them, raising concerns that Britain might lose the ability to make high-quality virgin steel needed by builders and railroads as the government tries to spur economic growth. Other British steelmakers are already in the process of shifting to electric arc furnaces that make steel from scrap metal.