China accuses British politicians of “arrogance” during British steel ownership
China launched a harsh attack on British politicians, accusing them of criticism of Jingye, a Chinese boss who criticized British steel, and the company's recent threat to shut down its scunthorpe explosion furnace.
In a strongly worded statement issued on Wednesday, Beijing’s embassy in London condemned what it called “slander” against the Chinese government and Chinese businesses operating in the UK. Rare public condemnation follows the remarks of British Commerce Secretary Jonathan Reynolds, who accused Jingye of failing to act sincerely and putting thousands of British jobs in danger.
The dispute centers on the future of the British steel company Scunthorpe ruins, Jingye warned it would shut down the explosion furnace – a move that would cost 2,700 jobs. In response, the government stepped in on the weekend to temporarily control the company and maintain on-site operations.
Although government intervention avoided an immediate crisis, it triggered a diplomatic flashpoint between Britain and China, threatening to undermine already tense relations as the Labor government actively invests in foreign investment, including from Chinese companies.
In an unusual Q&A post on its website, the Chinese Embassy hit back at criticism from British politicians saying: “The anti-Chinese rhetoric of some British politicians is very ridiculous and reflects their arrogance, ignorance and distorted mindset.”
Jingye, who rescued Gritish Steel in 2020 after its former owner Greybull Capital went bankrupt, said he planned to shut down the outdated explosive furnace, deeming the decision commercially reasonable. The company rejected £500 million in government support to transform the site into a more environmentally friendly electric arc furnace technology, a decision that sparked political tensions.
Reynolds expressed regret in an interview on Sunday that the government's previous opening of China's investment in key sectors such as steel. “I personally won't bring Chinese companies into our steel industry,” he said, worried about the impact of the Chinese state on nominal private business.
However, the Labor government's position on China remains contradictory. Prime Minister Rachel Reeves visited China in January to encourage investment, and Reynolds is still planning to travel to the country later this year, despite his recent criticism.
The embassy warns that this mixed information and politicization of business decisions can prevent future Chinese investment. “Any word or behavior that politicizes or maliciously hypes business issues will undermine the confidence of Chinese business investors in the UK and harm China's unrelated economic and trade cooperation,” it said.
This also brings Britain’s voice criticism of China and its alleged opposition to U.S. trade protectionism, accusing Donald Trump of escalating tariffs on Chinese goods. “What the hell are they doing?” the embassy asked in words.
Jingye insists that it has made a huge contribution to the UK economy by saving British steel in 2020 and retaining thousands of jobs. Now, its insistence on shutting down the Scunthorpe explosion furnace is a “normal decision” in the face of ongoing financial losses, with more than £350 million since the acquisition.
This situation underscores the broader dilemma faced by the British government: how to balance economic pragmatism with geopolitical prudence when dealing with China. As the UK reassesses its industrial strategy and tries to decarbonize the steel industry, the issue of who owns and operates critical infrastructure has never been more politically burdened.
The Ministry of Commerce and Trade has been contacted for comment. For now, the British Steel Legend is not only an industrial and economic issue, but increasingly as a diplomatic issue.
