China has launched a scathing attack on British politicians, accusing them of “arrogance, ignorance and a twisted mindset” over criticism of British Steel’s Chinese owner, Jingye, and the firm’s recent threat to shut down its Scunthorpe blast furnaces.
In a strongly worded statement published on Wednesday, Beijing’s embassy in London condemned what it described as unfounded “slander” against both the Chinese government and Chinese businesses operating in the UK. The rare public rebuke follows remarks by UK business secretary Jonathan Reynolds, who accused Jingye of failing to act in good faith and placing thousands of British jobs at risk.
The dispute centres on the future of British Steel’s Scunthorpe site, where Jingye had warned it would close the blast furnaces — a move that would have cost 2,700 jobs. In response, the government stepped in over the weekend with emergency legislation to temporarily take control of the company and keep the site operational.
While the government’s intervention averted an immediate crisis, it has triggered a diplomatic flashpoint between the UK and China, threatening to undermine already strained relations at a time when the Labour government is actively courting foreign investment — including from Chinese businesses.
In an unusual question-and-answer post on its website, the Chinese embassy hit back at criticism from British politicians, stating: “The anti-China rhetoric of some individual British politicians is extremely absurd, reflecting their arrogance, ignorance and twisted mindset.”
Jingye, which rescued British Steel in 2020 after the collapse of its former owner Greybull Capital, has said it plans to close the outdated blast furnaces, arguing that the decision is commercially justified. The company had rejected a £500 million offer of government support to transition the site to more environmentally friendly electric arc furnace technology — a decision that inflamed political tensions.
Reynolds, in an interview on Sunday, voiced regret over previous governments’ openness to Chinese investment in critical sectors such as steel. “I wouldn’t personally bring a Chinese company into our steel sector,” he said, citing concerns over the influence of the Chinese state on nominally private businesses.
However, the Labour government’s stance on China remains ambivalent. Chancellor Rachel Reeves visited China in January to encourage investment, and Reynolds is scheduled to travel to the country later this year, despite his recent criticisms.
The embassy warned that such mixed messages and politicisation of commercial decisions could deter future Chinese investment. “Any words or deeds that politicise or maliciously hype up business issues will undermine the confidence of Chinese business investors in the UK and damage China-UK economic and trade cooperation,” it said.
It also contrasted the UK’s vocal criticism of China with what it described as a lack of opposition to US protectionism, referencing Donald Trump’s escalating tariffs on Chinese goods. “What on earth are they up to?” the embassy asked rhetorically.
Jingye maintains that it has already contributed significantly to the British economy by saving British Steel in 2020 and retaining thousands of jobs. It now insists the closure of the Scunthorpe blast furnaces is a “normal decision” made in the face of continued financial losses — over £350 million since the acquisition.
The situation underscores the broader dilemma facing the UK government: how to balance economic pragmatism with geopolitical caution in its dealings with China. As Britain reassesses its industrial strategy and seeks to decarbonise the steel industry, the question of who owns and operates critical infrastructure has never been more politically charged.
The Department for Business and Trade has been approached for comment. For now, the British Steel saga continues — not only as an industrial and economic issue, but increasingly as a diplomatic one too.