Reynolds explained that The efforts of the British government to take control over British Steel is a consequence of the attitude of the company owner, the Chinese Jingye group. He explained that Keira Starmer's office proposed the Chinese government to the balance of over $ 650 million in exchange for withdrawing from the decision to exclude two large furnaces in the Huta Huta in Scunthorpe in the north of England – the last in Great Britain, in which steel from iron ore is melted.
According to the British minister, the management of Jingye did not accept this proposal. The Chinese group argued the need to terminate the furnaces with the unprofitable functioning of them, including Due to the high costs of adapting to environmental protection regulations, as well as customs.
Jonathan Reynolds critically about previous governments. “They showed naivety”
In an interview with Skynews, Reynolds assessed that, allowing Chinese companies to get involved in the steel sector, the previous governments of Great Britain showed “naivety”. He emphasized that large enterprises, like the Jingye Group, have direct connections with the communist party of China.
– It is clear to say which sectors we can promote and in which industries to cooperate, in which, to be honest. Personally, I would not introduce a Chinese company to our steel sector. I think steel is a very sensitive industry – emphasized the minister of trade. Reynolds also stated that he perceived other sectors, such as motoring or agricultural products as less sensitive to Chinese investments.
The British government sold British Steel to Jingye in 2020. After the British company became insolvent. On Saturday, at an extraordinary meeting, both chambers of parliament were supported by the Starmer office of the state of taking control over British Steel. The British government does not exclude the nationalization of this company to protect the steelworks in Scunthorpe from closing.
