China Condemns UK Nationalisation Of British Steel
China has sharply criticised the United Kingdom after the British government formally nationalised British Steel, describing the move as harmful to Chinese investors and warning it has undermined confidence in doing business in the UK.
The dispute centres on British Steel, previously owned by China's Jingye Group, which acquired the company in 2020. The UK government announced the nationalisation after concluding that taking full control of the financially struggling steelmaker was necessary to protect national interests, preserve domestic steel production, and safeguard thousands of jobs at the Scunthorpe steelworks.
China's Ministry of Commerce said it "firmly opposes" the decision, arguing that the UK had forcibly taken control of the company while failing to adequately recognise Jingye's investment in British Steel. Beijing claimed the move had damaged the legitimate rights of Chinese investors and weakened confidence in the British investment environment.
Chinese officials urged the British government to honour its obligations under the China–UK Bilateral Investment Treaty and resolve the dispute through fair negotiations. Beijing also warned that it would closely monitor developments and support Chinese companies in protecting their legal interests if necessary.
Jingye Group has separately demanded compensation for losses arising from the nationalisation, arguing that it invested heavily in British Steel after purchasing the company and that the government's actions have significantly reduced the value of its investment. The company has begun formal consultations under international investment agreements and has indicated it may pursue arbitration if negotiations fail.
The UK government maintains that the decision was taken to secure Britain's remaining primary steelmaking capacity and protect approximately 2,700 jobs at the Scunthorpe plant. Ministers have stated that an independent valuation process will determine any compensation payable to Jingye under British law.
The disagreement has become another source of tension in UK–China relations, with analysts suggesting the outcome could influence future Chinese investment in Britain. Both governments have said they hope the compensation issue can be resolved through continued dialogue rather than prolonged legal action.
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