China opposed British steel nationalism

“I strongly oppose and am strongly dissatisfied with the decision of the British government,” China said, opposing the importation of British steel.

On Thursday, the UK government said taking the loss-making firm into public hands would protect jobs and “vital national talent”.

The UK took over British Steel’s operations in Scunthorpe last year, although it is still owned by China’s Jingyi Group, limiting the government’s ability to control its future.

China’s Ministry of Commerce said on Friday that the measures would seriously undermine Jinge’s legal rights and interests and seriously damage the confidence of Chinese companies to invest in the UK.

He called on Britain to “honestly fulfill” its obligations under the China-UK bilateral investment treaty.

“Gingy’s significant contribution to the UK economy and society has been ignored by the British side in the name of national security,” the ministry said.

The statement added that Beijing would closely monitor developments and support Chinese companies to protect their rights, but did not specify what the protection of Chinese companies’ rights might be.

The decision to nationalize British Steel threatens to strain relations between London and Beijing, as Andy Burnham becomes prime minister on Monday.

The incoming prime minister will have to weigh the economic value of the relationship with the world’s second largest economy in his approach to the issue.