Senior Labour figures have urged the government to re-examine its ties with China over investment in UK infrastructure, citing national security concerns. The call comes after a recent dispute at Scunthorpe Steel, where British ministers intervened to take control of the plant from Chinese owners Jingye.
Labour peer Helena Kennedy said that all Chinese companies operating within the country’s infrastructure should undergo an urgent security review, warning that the risks extend beyond China and include threats to digital infrastructure and intelligence arrangements.
The government insists that the Scunthorpe incident was a commercial dispute, with business secretary Jonathan Reynolds not ruling out sabotage. However, ministers are facing mounting pressure from their own party to reconsider their drive for Chinese investment in key sectors.
Labour MP Liam Byrne called for increased scrutiny of investors, stating that “not every investor comes with goodwill” and that economic security cannot be taken lightly. George Magnus, an associate at the China Centre at Oxford University, also warned that careful rule-making was needed over any inward investment from China.
The government has responded to the pressure by downplaying the risks associated with Chinese investment, with Chancellor Rachel Reeves saying the country remains open to funding from Chinese companies. However, Labour is pushing for a more thorough assessment of security concerns and increased transparency around investments in critical infrastructure.
Source: https://www.theguardian.com/world/2025/apr/14/senior-labour-figures-call-for-review-of-chinese-investment-in-uk-infrastructure