It certainly sends a bad message and I can see why people would be very much against it. Thing is stuff like this strikes me as very small scale and we would perhaps be better off concentrating on the really big problems.
I see the UK has re-fired up a coal power station today because gas has got expensive and the lack of wind recently means our turbines haven't been turning. This just highlights our need to move away from an over-reliance on gas and we need a better mix of renewables. The sort of thing preoccupies me more rather than small scale projects which whilst not great are for very specific reasons.
We do really need a strong and stable access to steel though. It is so important for so many aspects of our lives and we all should have realised by now that relying on China is a fools errand.