British Government Bars Chinese Ownership in Steel Industry

The British government has intervened to control British Steel, following the Chinese Jingye Group's refusal of a government aid package. Concerns arose amid global steel overcapacity and U.S. tariffs. The move aims to secure Britain's ability to produce virgin steel independently, amidst political tensions with China.

The British government has taken emergency measures to prevent Chinese companies from controlling the nation's steel sector. This decisive move comes after Jingye Group, a Chinese company owning British Steel, declined a significant government aid package, threatening the integrity of Britain's steel production industry.

The refusal, combined with Jingye's intent to import steel from China, risked incapacitating British blast furnaces, necessary for producing virgin steel. Business Minister Jonathan Reynolds highlighted the dangers of over-reliance on foreign steel and underscored the strategic importance of keeping steel production domestically controlled.

Amidst this development, political dynamics between Britain and China are under scrutiny, as the current Labour government navigates complex international relationships. The refusal of Jingye's proposals aligns with wider European and United States policies on limiting strategic industry influence from Chinese state-affiliated firms.

(With inputs from agencies.)