British media: British authorities are discussing the possibility of legislating to write off the debt owed by British Steel to Chinese companies
According to a report by the Financial Times on Thursday citing sources, the British authorities are studying the possibility of writing off the debt owed by British Steel, which has been taken over by the British government, to Chinese companies through new legislation.
In April this year, the Financial Times reported that the British government was considering the nationalization of British Steel owned by Chinese enterprises. Chinese Foreign Ministry spokesman Lin Jian then stated that the issue of British Steel should be resolved through negotiations based on the principle of mutual benefit. The Chinese government urged Britain to effectively protect the legitimate rights and interests of Chinese companies operating in the country.
According to the newspaper report: "A person close to the situation said that the government is assessing whether it can 'get rid of' the huge debts of British Steel through new bills."
The government believes that this measure could make it easier for the company to find buyers and avoid full nationalization. The source pointed out that a final decision has not yet been made.
Latest data shows that as of 2023, the debt owed by British Steel to Chinese enterprises has reached £736 million (about $988 million), and according to information from official and business sources cited by the Financial Times, the current figure has swollen to nearly £1 billion (about $1.34 billion).
Analysts pointed out that the application of special laws aimed at writing off debts to Chinese enterprises may undermine confidence in British enterprises and exacerbate tensions between China and the UK.
Source: https://www.toutiao.com/article/1832845705580544/
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