China has launched a scary attack on the British politicians, accusing the British steel Chinese owner, Jinge's criticism of “ego, ignorance and a twisted mentality”, and to close the firm's recent threat to the firm's recent threat to shut down its Scanthorap blast furnace.
In a strong statement published on Wednesday, the Beijing embassy in London condemned that it was described as “condemnation” against both the Chinese government and Chinese businesses working in the UK. Rare public rebukes follow the comments of UK Business Secretary Jonathan Reynolds, who accused Jinge of acting in good faith and failing to put thousands of British jobs in good faith.
The future of the British Steel's Scanthorpe site, where Jinge warned that this blast would shut down furnace – a step that would have 2,700 jobs. In response, the government stepped into the weekend with emergency law and temporarily took control of the company and kept the site operational.
While the government's intervention extended the immediate crisis, it has triggered a diplomatic flashpoint between the UK and China, which already threatens to weaken stressful relations at a time when the labor government is actively crossing foreign investment – including Chinese businesses.
In an unusual question-answer-post-post on its website, the Chinese Embassy hit back on the criticism of British politicians, stating: “Some individual British politicians have an anti-China-China rhetoric, which reflects their ego, ignorance and twisted mentality.”
Jinge, who saved British Steel in 2020 after the collapse of his former owner Graybul Capital, has said that the old blast is planning to shut down furnace, arguing that the decision is commercially appropriate. The company had rejected a £ 500 million of government support to transfer the site to more environmentally -friendly electric arch furnace technology – a decision that provoked political tensions.
Reynolds regretted the openness of previous governments for Chinese investment in important areas such as steel, in an interview on Sunday. He said, “I will not personally bring a Chinese company to our steel sector,” he said, citing concerns over the influence of Chinese state on nominal private businesses.
However, the trend of labor government on China is unclear. Chancellor Rachel Raves visited China in January to encourage investment, and Reynolds are scheduled to travel to the country later this year, despite their recent criticisms.
The embassy warned that politicization of such mixed messages and commercial decisions could prevent future Chinese investment. “Any word or karma that politicization or maliciously preach of business issues will reduce the confidence of Chinese trade investors in the UK and damage China-UK economic and business cooperation,” said this.
This unlike China's vocal criticism of Britain, which he described as a lack of opposition to American protectionism, refers to Donald Trump's growing tariff on Chinese goods. “What are they doing on earth?” The embassy asked the rhetoric.
Jingye says that it has already made significant contribution to the British economy by saving British steel and maintaining thousands of jobs in 2020. Now it emphasizes the shutdown of Scanthorpe blast furnace, which is a “general decision” in front of continuous financial loss since the acquisition – more than £ 350 million.
The situation outlines the widespread dilemma before the UK government: how to balance economic practicality with geopolitical cautious in its behavior with China. As the UK assures its industrial strategy and tries to decorate the steel industry, the question of the owner and operating the important infrastructure has never been made politically more accused.
The Department of Trade and Business has been contacted for comment. For now, the British steel saga continues – not only as an industrial and economic issue, but also as a diplomat.
Paul Jones
Harvard alumni and former New York Times journalist. Editor of Vocational Affairs for more than 15 years, UK largest business magazine. I am the head of the automotive division of Capital Business Media, working for customers like Red Bull Racing, Honda, Eston Martin and Infinity.