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China has hit out at the nationalisation of British Steel, saying it “firmly opposes and is strongly dissatisfied with the British government’s decision”.<\/b><\/p>\n
On Thursday, the UK government said that taking the loss-making firm into public hands would protect jobs and safeguard a “vital national capability”.<\/p>\n
The UK took control of British Steel’s operations in Scunthorpe last year, though it was still owned by China’s Jingye Group, limiting the government’s ability to steer its future.<\/p>\n
China’s commerce ministry said on Friday that the moves “seriously infringed upon Jingye’s legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK”.<\/p>\n
It also called on Britain to “faithfully fulfil” its obligations under the China\u2013UK Bilateral Investment Treaty.<\/p>\n
“Disregarding Jingye’s significant contribution to the UK economy and society, the British side forcibly took control of the company in the name of national security,” the ministry said.<\/p>\n
The statement added that Beijing would monitor developments closely and support Chinese firms to protect their rights, but did not specify what protecting Chinese companies’ rights might involve.<\/p>\n
The decision to nationalise British Steel threatens to strain the relationship between London and Beijing just as Andy Burnham is set to become the prime minister on Monday.<\/p>\n
The incoming PM will have to weigh his approach to the issue with the economic benefits of ties with the world’s second largest economy.<\/p>\n<\/div>\n