The British parliament has taken emergency control of a steel plant in northern England, citing national security concerns. The move comes after the owner of the plant, Chinese company Jingye, threatened to cancel orders for raw materials needed to keep the blast furnaces burning.
In a rare recall from its Easter vacation, lawmakers brought back from their break last weekend to discuss the potential closure of British Steel’s Scunthorpe plant. The government claims that cancellation would leave Britain unable to make virgin steel, a crucial component in infrastructure and weapons production.
Prime Minister Keir Starmer’s decision reflects growing geopolitical concerns as the US winds down its military footprint in Europe. Labour’s move may also be driven by shorter-term political concerns, with local elections due in May.
Critics argue that similar concerns did not prompt government intervention when another large steel mill closed last year, resulting in 2,800 job losses. The UK government is now facing questions about whether it is turning its back on economic orthodoxy and abandoning international trade policies.
Experts say the decision does not necessarily signal a shift away from globalization but rather an attempt to protect key industries deemed strategically important. However, critics warn that such moves could undermine market forces and lead to subsidizing production at a single plant.
The move also raises concerns about Britain’s China strategy, which has been muddied by recent controversies over Huawei and Jingye. With Labour attempting to court Chinese investment, the government’s actions may put its overtures on ice until further notice.
Source: https://edition.cnn.com/2025/04/16/business/british-steel-scunthorpe-china-uk-gbr-intl/index.html