China warns UK government to treat Chinese owners of British Steel fairly

Photo credit- APChina has warned the UK government to treat the Chinese owners of British Steel fairly or risk undermining investor confidence in the country, two days after British authorities took control of the company.China’s Foreign Ministry made the comment on Monday as government-appointed managers raced to prevent British Steel from shutting down the last two blast furnaces in Britain that make so-called virgin steel from raw materials.Parliament on Saturday passed legislation authorizing the government to take control of the company and its Scunthorpe steelworks from Jingye Group , which has owned British Steel since 2020. Jingye still owns the company but British authorities have taken control of day-to-day operations.“We hope the British government treats Chinese enterprises investing and operating in the U.K. fairly and justly, protects their legitimate rights and interests, and avoids politicizing and over-securitizing economic and trade cooperation, so as not to affect the confidence of Chinese enterprises in investing and cooperating in the U.K.,” Foreign Ministry spokeperson Lin Jian said during the weekly press conference in Beijing.The U.K. government on Monday installed a new executive team at British Steel with the aim of ensuring “consistent and professional leadership” of the Scunthorpe works in northeastern England, British Steel said in a statement.Two longtime British Steel executives, Allan Bell and Lisa Coulson, were named as the company’s interim chief executive and chief commercial officer. The appointments were approved by Business Secretary Jonathan Reynolds.Bell, who has worked at Scunthorpe for 14 years, said his main goal was to ensure continued steel production at the plant.“Our immediate priorities are securing the raw materials we need to continue blast furnace operations, ensuring we have the dedicated personnel to run those furnaces, and maintaining the highest levels of health and safety for our workforce,” Bell said in the statement.Prime Minister Keir Starmer on Saturday took the dramatic step of recalling Parliament from its spring recess to pass emergency legislation authorizing the government to take control of British Steel. Authorities were concerned about the plant’s future after Jingye stopped ordering the iron ore and coking coal needed to keep the furnaces operating.Once blast furnaces are shut down, it is difficult and expensive to restart them, raising concerns that Britain might lose the ability to make high-quality virgin steel needed by builders and railroads as the government tries to spur economic growth. Other British steelmakers are already in the process of shifting to electric arc furnaces that make steel from scrap metal.

Source:The Times

April 14, 2025 11:40 UTC


UK pledges £20 billion to help firms amid US tariff turmoil

Photo credit- APThe UK pledged £20 billion ($26 billion) on Sunday to help exporters including those affected by US tariffs, as President Donald Trump's sweeping stop-start import taxes roil global markets.Britain's finance ministry said the move would expand the UK's export finance package by £20 billion to a total of £80 billion, with "thousands of UK businesses affected by tariffs set to benefit. "Up to £10 billion of that support will be used specifically for firms "impacted in the short term by the current situation," it said.Finance minister Rachel Reeves said the move would help companies weather difficulties ahead. "The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead," she said.The finance ministry said small businesses will also be able to access loans of up to £2 million as part of the package.Analysts have warned that the 10 percent levy on US imports of British goods could further weaken business and consumer sentiment in the UK.Specific industries such as auto, steel and aluminium face even steeper tariffs as high as 25 percent.The United States is the UK's single largest country trading partner, with over £1.2 trillion invested in each other's economies.It comes as the UK strives to broker a long-awaited post-Brexit trade deal with the United States.Asked when it could be completed, Britain's Business and Trade Secretary Jonathan Reynolds told Sky News on Sunday he could not give a timeline, saying that Trump was the "driving force and the decision maker... on the US side."

Source:The Times

April 14, 2025 06:32 UTC


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