China hits out at British Steel nationalisation
China reacted strongly to the nationalization of British Steel, saying it “strongly opposes the British government’s decision and is absolutely dissatisfied with it.”
The UK government on Thursday said taking the loss-making firm into public hands would protect jobs and secure a “vital national capacity”.
Britain took control of British Steel’s operations in Scunthorpe last year; However, these operations were still owned by the Chinese Jingye Group, limiting the government’s ability to direct its future.
China’s Ministry of Commerce said in a statement on Friday that the moves “seriously violated Jingye’s legitimate rights and interests and seriously undermined the confidence of Chinese companies investing in the UK”.
He also called on the UK to “faithfully fulfill” its obligations under the China-UK Bilateral Investment Treaty.
“Ignoring Jingye’s significant contribution to the UK economy and society, the British side forcibly seized control of the company in the name of national security,” the ministry said. he said.
The statement stated that Beijing would follow the developments closely and support Chinese companies to protect their rights, but it was not specified what the protection of the rights of Chinese companies might include.
The decision to nationalize British Steel threatens to strain relations between London and Beijing just as Andy Burnham becomes prime minister on Monday.
The new Prime Minister will have to balance his approach to the issue with the economic benefits of ties with the world’s second-largest economy.
The China-UK Bilateral Investment Treaty is a legally binding agreement signed in 1986. It is designed to encourage and protect investments between the two countries.
