China Condemns UK Nationalization of British Steel Over Jingye Rights as Losses Top £1 Million a Day
Updated
Updated · BBC.com · Jul 17
China Condemns UK Nationalization of British Steel Over Jingye Rights as Losses Top £1 Million a Day
3 articles · Updated · BBC.com · Jul 17
Summary
China's commerce ministry said the UK government's move to nationalize British Steel seriously infringed Jingye Group's rights and damaged Chinese investors' confidence in Britain.
London took the loss-making company into public ownership on Thursday after Parliament passed emergency legislation, arguing the step was needed to protect jobs, keep Scunthorpe's blast furnaces running and preserve a vital national capability.
Jingye is seeking compensation after previously saying British Steel was losing £700,000 a day, while the government now faces running costs of more than £1 million daily; the National Audit Office put the Scunthorpe burden at about £1.3 million a day in March.
The dispute threatens to complicate UK-China ties just as Andy Burnham is due to become prime minister on Monday, forcing his incoming government to balance industrial control against economic relations with China.