UK Criticizes Past Steel Industry Oversight After Taking Control of British Steel

The UK's business secretary expressed concern regarding the previous handling of the nation's steel industry, stating that the government was "naive" in allowing a Chinese company to take control of a crucial sector. This statement followed the government's recent intervention to take temporary control of British Steel.

The government's action was prompted by the announcement from Jingye, the Chinese owners of British Steel, that maintaining the blast furnaces at the Scunthorpe plant was no longer financially sustainable. Urgent legislation was swiftly passed to prevent the shutdown of the plant, which is the last remaining facility in the country capable of producing steel from raw materials.

Reynolds acknowledged past mistakes, specifically blaming previous Conservative administrations for allowing Chinese companies to operate sensitive infrastructure. He emphasized the need for a balanced approach, recognizing that certain sectors are more critical than others. He also noted that a significant portion of UK-Chinese trade occurs in areas that are not considered contentious.

Regarding the situation at the Scunthorpe plant, Reynolds clarified that he was not accusing the Chinese state of direct involvement. He believed that the Chinese government would understand the UK's decision to intervene, given the importance of preserving the plant's capacity. He also revealed that Jingye had rejected a substantial offer of financial support, requesting a significantly larger sum with limited assurances about the continued operation of the furnaces.