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British Steel in Scunthorpe: It seems one reason the plant here has lost a large amount of income was Brexit uncertainty.

China has found a way around high EU tariffs on its steel, by buying British Steel for the bargain price of just £70 million.

It seems that country’s strategy has paid off – the UK industry has been struggling for years after it was said that China was flooding the international market with cheap, inferior steel.

In 2016 the EU imposed tariffs of up to 73.7 per cent on Chinese steel after an influx of cheap imports from Asia forced European manufacturers to cut jobs and lower prices.

But it seems that the damage was done, and it seems the only way the UK could protect 4,000 jobs in the industry, and 20,000 in the supply chain, was to allow a Chinese company to buy British Steel.

Won’t this be a way around those huge EU tariffs – even with Brexit, if a UK government negotiates a favourable trade deal?

And won’t this mean more inferior steel flooding the market, with the safety risks this entails?

From a political point of view, this is a slap in the face for the right-wing parties.

They attack Jeremy Corbyn’s Labour as far-left amateurs who don’t understand economics – but now they are being forced to accept help from the ‘tiger’ economy of the far east, which is run by communists.

It is clear that these Chinese left-wingers know far more about economic imperialism than the Tories.

British Steel is set to announce a rescue deal with China’s Jingye Group, which could safeguard up to 4,000 jobs in the UK.

Jingye Group has agreed in principle to buy British Steel for £70m.

It is understood that the government will help in the form of loan guarantees and other financial support.

British Steel has been kept running by the government via the Official Receiver since May, when the company went into liquidation.

As well as employing 4,000 people at its Scunthorpe and Teesside sites, British Steel supports an additional 20,000 jobs in the supply chain.

Another 1,000 jobs are based in France and the Netherlands – those are included in the deal too.

Source: British Steel to be rescued by Chinese firm in £70m deal – BBC News

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