Sun Apr 13 11:25:19 UTC 2025: ## Government Takes Control of British Steel, Blames Past Naivete in Allowing Chinese Ownership
**London, UK** – The UK government has taken control of British Steel after its Chinese owner, Jingye, declared the Scunthorpe plant financially unsustainable. The move, which involved a rare Saturday parliamentary session, averted the immediate closure of the plant and the loss of thousands of jobs.
Business Secretary Jonathan Reynolds criticized previous governments for allowing sensitive industries, like steel, to fall under Chinese ownership, calling it “far too naive.” He stated that while the government isn’t accusing the Chinese state of deliberately sabotaging the plant, the decision to intervene was made necessary by Jingye’s refusal of a £500 million government support package. Jingye, which purchased British Steel in 2020 and claims to have invested over £1.2 billion, reportedly sought more than double that amount with insufficient guarantees of continued operation.
The government’s intervention was driven by concerns about national security and the long-term economic impact of losing the UK’s last remaining integrated steel plant. While Reynolds emphasized that much UK-China trade is non-contentious, he highlighted the need for a more discerning approach to sensitive sectors.
The Labour government’s action has drawn criticism. The Conservative opposition questioned the handling of negotiations, while unions and some politicians, including Nigel Farage of Reform UK, called for full nationalization of the plant. Reynolds acknowledged full nationalization as a potential next step, but stated it was beyond the scope of the emergency legislation passed on Saturday. The government is now facing the immediate challenge of securing sufficient raw materials to keep the plant’s blast furnaces running.
First Piper 