Chinese embassy rebuts UK criticism over British Steel

Following the UK Parliament's emergency legislation to temporarily take control of British Steel to maintain operations, speculation has arisen about the company's viability and the implications of Chinese investment in the UK.

British Steel, which entered liquidation in 2019, was acquired by private Chinese firm Jingye Group in 2020. It currently employs around 3,500 workers. Amid reports of monthly losses exceeding £700,000 due to high energy costs, market saturation, and global tariffs, British media and political figures have raised concerns over the potential closure of blast furnaces — a move that could leave the UK as the only G7 nation unable to produce primary steel from raw materials.

In response, a spokesperson from the Chinese Embassy in the UK firmly rejected the “anti-China rhetoric” of certain UK politicians, calling it “absurd” and reflective of “arrogance, ignorance, and a twisted mindset.” The spokesperson stressed that Jingye Group operates on market principles and had made significant investments to rescue British Steel from collapse, safeguarding thousands of jobs.

The Embassy also noted that under the UK's net-zero strategy, steelmakers must decarbonize by 2035. As part of this transition, British Steel has engaged in talks with the government about shifting to electric arc furnaces. Similar steps were taken by other producers, including the Port Talbot Steelworks in Wales, which closed its blast furnace in July 2024.

“British Steel's restructuring is a rational industrial decision,” the spokesperson said, adding that Chinese enterprises have generally operated lawfully and made positive contributions to the UK economy, generating over £115 billion and nearly 60,000 jobs.

The Embassy criticized the UK's silence on U.S. protectionist trade policies while targeting Chinese companies with baseless allegations. “Such politicization of business matters undermines investor confidence and damages China–UK economic cooperation,” the spokesperson warned.

The Chinese side urged the UK government to uphold fairness and non-discrimination, protect the rights of Chinese investors, and continue negotiations with Jingye Group to seek a mutually acceptable solution. “We will continue to closely monitor developments,” the spokesperson concluded.