I’ll challenge Chinese over cheap steel, vows Cameron

DAVID Cameron last night pledged to challenge the Chinese president over the ‘dumping’ of cheap steel which has put thousands of British jobs at risk.

The Prime Minister has come under mounting pressure after more than 5,000 British steelworkers were told their jobs are to go or are under threat – largely as a result of uncompetitive Chinese practices.

As President Xi Jinping arrived last night for a lavish four-day state visit, Downing Street promised that no issue would be ‘off the table’.

But critics say it is appalling that Mr Cameron is rolling out the red carpet for Mr Xi even though his policies are directly responsible for threatening the jobs of as many as one in six British steelworkers.

The jobs cull started earlier this month, when it was confirmed that the SSI steel-making plant in Redcar is to be mothballed with the loss of 2,200 jobs. Tata is expected to confirm today that up to 1,200 jobs are to go in Scunthorpe and Scotland. And yesterday Caparo, owned by Labour peer Lord Paul, announced it was set to go into administration – putting up to 1,700 jobs under threat.

The UK’s beleaguered steel industry – which employed around 30,000 at the start of the year – blames China for dumping below-cost steel on the market, driving down global prices and making it impossible for British firms to stay afloat.

But China’s ambassador to the UK, Liu Xiaoming, said yesterday that the closures were Britain’s fault for having an old and unprofitable steel industry. He told ITV News: ‘If you continue to stay with your old, traditional business, you’re losing money and opportunities… China is making adjustments – why not Britain?’

Downing Street rejected accusations of ‘kowtowing’ to Beijing for the sake of commercial deals, saying: ‘There is nothing off the table in our discussions with the Chinese.’

The problems faced by the three steel plants piled pressure on Mr Cameron in the Commons yester- day, with Labour leader Jeremy Corbyn urging him to challenge China over allegations it is destroying other country’s steel industries by pumping out cheap product.

The Prime Minister said: ‘We’re doing everything we can in Europe to help our steel industry. That is why we voted in favour of dumping tariffs against the Chinese,’ adding: ‘Will we raise it with the Chinese? Of course, we’ll raise all these issues.’

Frances O’Grady, general secretary of the TUC, said: ‘One in six UK steelworkers face losing their jobs. At this rate there won’t be a British steel industry in a year’s time. Ministers cannot afford to stand on the sidelines and watch this crisis unfold. They must urgently raise with the Chinese president the devastating impact Chinese steel dumping is having on British manufacturers.’

Last night a Number 10 spokesman said more than £30billion worth of trade and investment deals will be completed during the state visit – creating over 3,900 jobs across the UK.