A recent poll reveals that a significant portion of the British public supports restricting Chinese companies from key sectors of the UK economy.
Research conducted by More in Common found that two-thirds of respondents believe firms with links to Beijing should be excluded from major investments in areas such as defense and communications.
Additionally, 60% of those surveyed felt the same about the National Health Service (NHS), while 55% expressed similar concerns regarding sectors like transport and energy.
The British Steel Situation
The survey results follow the UK government’s controversial decision to take control of British Steel.
This action came in the wake of allegations that its Chinese owner had tried to permanently shut down the company’s furnaces.
Business Secretary Jonathan Reynolds recently indicated that, moving forward, any future involvement of Beijing-connected companies in the UK would be subject to a “high trust bar.”
However, while this approach reflects growing concerns about Chinese influence, the Labour government has also been working to strengthen ties with China, as it seeks to boost the UK’s economic growth.
Nationalisation vs. Commercial Partnership
The poll also suggests that a majority of the public—54%—would support nationalising British Steel, compared to only 14% who would oppose it.
Despite this, government ministers have signaled that they would prefer a commercial partner, mainly due to concerns about the financial costs of nationalisation.
There is still uncertainty regarding whether another Chinese company could be involved with British Steel in the future, even though some lawmakers have called for a ban on Chinese investments in sectors considered strategically important.
Future of British Steel
While visiting Immingham, Jonathan Reynolds emphasized the need for a private sector partner to work alongside the government in transforming British Steel for the future.
He acknowledged that this partnership could involve adopting new technology or facilities, potentially leading to a different employment structure at the Scunthorpe plant.
Reynolds stressed the importance of securing a long-term future for the steel industry and avoiding unplanned closures that would result in significant job losses.
Reynolds pointed out that British Steel’s furnaces have served the country for nearly a century, and it is crucial to ensure they continue functioning with a sustainable model moving forward.
The goal is to prevent any hasty shutdowns and to work toward a viable future for the steelworkers.
Reevaluating Chinese Involvement
In light of recent tensions with Jingye, a Chinese firm, Reynolds also acknowledged that future Chinese involvement in the UK steel sector would be evaluated more cautiously.
He made it clear that the government’s actions were specifically in response to the behavior of one company, which he believed was not acting in the UK’s best interest.
While the broader UK-China relationship is under scrutiny, the government’s intervention was driven by the need to protect national interests in the steel industry.
Uncertainty About Future Chinese Investment
Trade Minister Sarah Jones, however, refrained from ruling out the possibility of another Chinese firm becoming involved with British Steel.
She stated that discussions regarding the future of Scunthorpe were still ongoing, and no definitive decisions had been made.
Her comments reflect ongoing concerns about foreign influence on critical UK infrastructure, with a focus on ensuring that the domestic steel industry can be maintained and grown, rather than allowing it to continue its decline.
What’s Next for British Steel?
As the debate over Chinese involvement in key UK industries continues, the government is under pressure to balance national security concerns with the need for economic growth and job security.
The future of British Steel remains uncertain, with ongoing discussions about the best way to ensure its long-term viability and avoid further disruptions in the industry.