UK Business Secretary Jonathan Reynolds didn't mince his words in parliament last week when he accused Chinese company Jingye of not acting in "good faith".
"Despite our offer to Jingye being substantial, they wanted much more. Frankly, an excessive amount," he told the House of Commons.
Jingye bought British Steel out of insolvency back in 2020, promising a "new chapter" in steelmaking in the UK.
However, that bright future never materialised.
In recent weeks, the company claimed it was losing around £700,000 a day.
It took the decision to stop purchasing raw materials that were fuelling the two blast furnaces in Scunthorpe, nicknamed Queen Anne and Queen Bess.
Had the fires gone out, the furnaces could not have been restarted as the molten metal inside would have solidified. Had it been reheated the furnaces would have cracked.
The UK government offered to help fund the purchase of these materials but could not reach agreement with Jingye.
And so, having just embarked on their Easter recess, MPs were recalled last Saturday to pass emergency legislation allowing the government to take control of British Steel.
It was the first Saturday sitting of parliament since 1982, during the Falklands War.
Within a day the law passed, allowing the government to put plans in place to secure the necessary materials to keep Queen Anne and Queen Bess burning, and avoid going past the point of no return.
Chinese fallout
The government said it had made numerous offers to Jingye to help it keep the furnaces burning, but ultimately Mr Reyolds believed that the Chinese company was intent on closing it down regardless.
Some have speculated that this was part of a Chinese plan to end primary steelmaking in the UK, so that it would be reliant on Chinese imports.
In subsequent interviews, Mr Reynolds also ruled out the idea of doing business with a Chinese company in the steelmaking sector again.
The Chinese response was forthright.
"The anti-China rhetoric of some individual British politicians is extremely absurd, reflecting their arrogance, ignorance and twisted mindset," the Chinese embassy said in a statement.
A spokesperson for the embassy posed the question: "At a time when the US is wielding the tariff stick against all countries, the UK included, and engaging in unilateral and protectionist trade bullying, those British politicians just keep slandering the Chinese government and Chinese enterprises instead of criticising the United States. What on earth are they up to?"
Future China relationship
It's a dilemma for the UK.
Since coming to power, Prime Minister Keir Starmer’s government has been on a charm offensive across the world, which has included China.
Cabinet members like Chancellor of the Exchequer Rachel Reeves, Foreign Secretary David Lammy and Energy Secretary Ed Miliband have visited the country.
The Business Secretary himself is also due to visit China later this year for trade talks.
Mr Starmer’s government has big ambitions in the areas of AI, renewable energy and foreign investment to grow the economy. China is a part of that.
At the same time, questions are being asked about whether major Chinese companies can be trusted.
In its manifesto, Labour promised to carry out an "audit" of both the "opportunities and challenges" posed by China.
That audit is expected to be published later this year.
However, the UK has for some time taken a hawkish approach to China.
The i newspaper reported this week that the Defence Ministry had banned electric vehicles with Chinese components from military training bases and "sensitive sites" due to intelligence gathering fears.
There have been other examples of tension between both countries, with a Labour MP denied access to Hong Kong last week for her criticism of China. Mr Lammy said it was unacceptable.
Last year a Chinese businessman, with close links to Prince Andrew, was banned from the UK on national security grounds.
Asked last week if he would allow another Chinese company to invest in the steel plant Mr Reynolds said he wouldn’t.
Although he appeared to soften his stance a few days later.
"Our difference of opinion on the future was with a specific company", he said, adding that steel is a "sensitive sector".
At a time when the UK faces tariffs from the US and a more distant trading relationship with the EU post-Brexit, severing links with China would hinder the government's economic growth plans.
Plans for Scunthorpe
Over 2,700 people work at the Scunthorpe plant, with many thousands more jobs dependent on the site.
During a visit on Thursday, Ms Reeves assured staff that the future was "bright" for Scunthorpe.
As to who will own it in the future, "nothing is off the table", she said.
The UK government has made it clear that it may decide to pass legislation allowing it to nationalise the plant.
Whatever happens, Ms Reeves insisted that she is "determined to do what it takes to protect British industry".
It’s a reprieve for the community of Scunthorpe but the debacle has raised considerable questions around the future of the UK’s relationship with China
