UK Government Takes Control of British Steel Amid Chinese Investment Concerns

The UK government has taken control of British Steel amid concerns over its Chinese ownership by Jingye, which has been accused of attempting to shut down operations due to financial losses of approximately £700,000 a day. Business Secretary Jonathan Reynolds criticized previous UK administrations for naively allowing sensitive industries to fall into foreign hands and indicated a shift towards a more cautious approach regarding future Chinese investments in critical sectors. The government passed emergency legislation to keep the Scunthorpe plant operational, though Reynolds could not guarantee a continuous supply of raw materials needed for production. He expressed skepticism about future Chinese involvement in the steel sector, stating that a 'high trust bar' would be established for such investments. The situation has raised concerns among local unions and political leaders, suggesting potential diplomatic tensions with China as the Labour Party seeks to reset relations. Overall, the crisis reflects broader issues regarding national security and economic independence in the UK.