China’s embassy in Britain has criticised the “arrogance, ignorance and twisted mindset” of UK politicians towards Chinese business, as it defended British Steel’s owner Jingye.
“Anti-China” rhetoric by politicians was labelled “extremely absurd”, by the embassy’s spokesperson.
Ministers intervened at the weekend and have been racing to secure supplies to keep the blast furnaces at Scunthorpe running, after talks with Jingye broke down.
Business Secretary Jonathan Reynolds has since suggested Chinese firms would be viewed “in a different way” over future approaches for involvement in the steel industry. He had accused Jingye of not acting in “good faith” in negotiations over the company.
The Chinese embassy’s spokesperson said: “The anti-China rhetoric of some individual British politicians is extremely absurd, reflecting their arrogance, ignorance and twisted mindset.”
They said Jingye was a private Chinese business and “conducts operation on its own”. The spokesperson pointed to years of losses by British Steel before Jingye took control in 2020.
They said Jingye had put in “substantial funding” to keep British Steel afloat, and claimed steel workers could have been unemployed otherwise.
The embassy said the decision by British Steel, under Jingye’s ownership, to close its blast furnaces and build electric arc furnaces is “normal” as part of the UK Government’s net-zero strategy.
The spokesperson added: “At a time when the US is wielding the tariff stick against all countries, the UK included, and engaging in unilateral and protectionist trade bullying, those British politicians just keep slandering the Chinese government and Chinese enterprises instead of criticising the United States. What on earth are they up to?
“Any words or deeds that politicise or maliciously hype up business issues will undermine the confidence of Chinese business investors in the UK and damage China-UK economic and trade co-operation.
“We urge the British Government to follow the principles of fairness, impartiality and non-discrimination and to make sure that the legitimate rights and interests of Chinese companies in the UK are protected.
“At the same time, it is hoped that the British Government will continue to engage in consultations and negotiations with Jingye to actively seek a solution acceptable to all parties. We will continue to follow the development of this situation.”
Raw materials such as coking coal procured by the Government to keep the Scunthorpe plant running arrived in the UK on Tuesday.
Number 10 had said, earlier this week, that talks with the site’s owners had made it “clear that they wanted to shut the blast furnaces”, which could have left thousands of jobs at risk.
Jingye had stopped ordering raw materials and had begun selling off existing supplies, Mr Reynolds previously said, sparking concerns the plant could close within days.
Asked about potential future investment in the industry, Mr Reynolds said on Tuesday “I think you would look at a Chinese firm in a different way but I’m really keen to stress the action we’ve taken here was to step in, because it was one specific company that I thought wasn’t acting in the UK’s national interest.”
Reform UK leader Nigel Farage said on Tuesday the approach to China needs “a completely different rethink”.
He said: “You know what? If that means less investment from China, then, frankly, so be it.”
He added: “They have increasingly, over the last decade, become a nation that is not a friend of ours in any way.”
The criticism has come as the Government has sought economic ties with Beijing. Chancellor Rachel Reeves visited in January and secured £600 million of investment. Trade minister Douglas Alexander was in the country for meetings in recent days.
Treasury minister James Murray suggested the Government is striking a “balance” when it comes to Chinese investment into the UK.
Mr Murray told Sky News: “There are 450,000 jobs in the UK that rely on exports with China. We need to make sure we’re encouraging investment from China in the UK.
“But when it comes to critical infrastructure, when there is foreign investment or foreign involvement from any country in critical infrastructure, that needs the highest level of scrutiny.
“That’s the balance which the Government is taking, making sure we’re protecting our national interests that encourage inward investment and trade around the world.”
