China protests after Britain takes over British Steel
London plans to appoint an independent valuer in the autumn to calculate compensation for Jingye, which could be worth nothing.
The Chinese government protested Britain’s decision to take over British Steel, a unit of Jingye Group, after parliament passed rules allowing the steel industry to move into public ownership if it meets a public-interest test. China’s Ministry of Commerce said the move harmed the rights and legitimate interests of Chinese investors and could undermine the confidence of Chinese companies investing in Britain.
London said the takeover was needed to keep the Scunthorpe plant operating. The facility employs about 2,700 people and supplies types of steel needed by Network Rail and the construction sector. The British government is now covering short-term operating costs, while minister Blair McDougall said an independent valuer will be appointed in the autumn to determine compensation for Jingye.