UK Sets 'High Trust Bar' for Chinese Investment in Steel Industry

The UK has implemented stringent regulations for Chinese investments in key sectors, following tensions with Jingye Group over British Steel. Business Secretary Jonathan Reynolds emphasizes the sensitivity of the steel sector while legislation ensures the continuation of steel production amid fears of dependency on imported materials.

The UK government has heightened its scrutiny of Chinese investments in crucial sectors, following recent disputes with Jingye Group concerning the future of British Steel. Business Secretary Jonathan Reynolds underscored the "high trust bar" required for such investments, declaring steel a "very sensitive area."

Prime Minister Keir Starmer recalled lawmakers to support legislation preventing Jingye from closing blast furnaces at British Steel. The new law enables Reynolds to manage British Steel's operations and safeguard its 3,000 employees, while ensuring raw material supply to keep production afloat.

This move comes as lawmakers worry about the economic impact, fearing reliance on foreign steel sources. The government faces pressure to secure the supply chain and maintain domestic steel production. Despite the uncertainty, officials remain optimistic about the industry's future.

(With inputs from agencies.)