The UK government has intervened to take back British Steel from its Chinese owners, in an unprecedented move which could amount to the most significant nationalisation this century. Government ministers have accused the company’s owners, Jingye, of attempting to sabotage the Scunthorpe plant by allowing it to“It is an explicit strategy of the Chinese Communist Party to undermine the industrial base of foreign countries,” said Luke de Pulford, director of the Inter-Parliamentary Alliance on China.The government is meeting with Jingye representatives today in a bid to save the steelmaking plant from closure.Meanwhile, China is warning the UK against “politicising” British Steel, according to reports from AFP, in the midst of criticisms over Chinese ownership by business secretary Jonathan Reynolds. Lin Jian, a spokesperson for China’s foreign ministry, urged the British government to “avoid politicising trade cooperation or linking it to security issues, so as not to impact the confidence of Chinese enterprises in going to the UK”.The drastic action taken on British Steel adds pressure to the UK’s relationship with China, in particular since both invest in each others economies. The current Trump trade war shows that China is willing to retaliate when pushed, with current tariffs on US goods escalating to 125 per cent. British Steel and Chinese investment In the wake of Britain’s emergency takeover, Mr Reynolds confirmed that there must now be a “high trust bar” when dealing with firms from China.“I think we have got to be clear about what is the sort of sector where, actually, we can promote and co-operate, and ones frankly where we can’t,” he told Sky News hosts on Sunday.He added: “I wouldn’t personally bring a Chinese company into our steel sector.”Overall, Chinese foreign direct investment (FDI) into the UK stood at £4.2 billion in 2023, according to government figures. But British investment into China was actually twice as high, at £8.8 billion in the same year.However, both economies’ mutual investment have gone down significantly since Covid, dropping by around a third on either end. Earlier this month, shadow home secretary Chris Philp asked why the government is “silent” on China, saying there is “no question” that the country should be on an enhanced tier of the new foreign influence registration scheme. More