China rebukes UK over nationalisation of British Steel
The UK has appropriated its last working steelworks, following fears its former Chinese owners would shut it down. Beijing has warned the United Kingdom that
The UK has appropriated its last working steelworks, following fears its former Chinese owners would shut it down. Beijing has warned the United Kingdom that its nationalisation of British Steel has “severely undermined” Chinese companies’ confidence in investing in the UK. The UK nationalised the loss-making company on Thursday in what the government said was a move taken to protect national interests. British Steel is the only source of primary steelmaking in the UK. It supports approximately 2,700 jobs across its main steelworks in Scunthorpe and across the wider supply chain.
The company’s former owner, Jingye – which is among the 100 biggest companies in China – bought British Steel for 70 million pounds ($94m) in 2020. By 2025, Jingye said it was losing 700,000 pounds ($942,000) every day. British Steel’s nationalisation has been in the works for more than a year. In March 2025, Jingye carried out a consultation that concluded that the British Steel furnaces were not financially sustainable. The following month, it emerged that Jingye had cancelled orders for a key material used in the steelmaking process, stoking fears that it was planning to shut down the blast furnaces.
That month, the UK government seized operational control of British Steel from Jingye to stop that from happening. The Chinese company retained ownership, but lost operational control. Thursday, though, saw ownership officially transfer to the UK government, which says it will appoint an independent valuer to “assess whether any compensation is payable” to Jingye. The process has angered Beijing. The expropriation of British Steel “seriously damaged” Jingye’s legitimate rights and interests and “severely undermined” Chinese companies’ confidence in investing in the UK, China’s Ministry of Commerce said in a statement on Friday.
The UK, the ministry said, has “forcibly” taken over the company and “disregarded” Jingye’s contributions to the British economy and society. The ministry urged the UK to fulfil obligations under the China-UK Investment Protection Agreement and said it would assist Chinese companies in protecting their rights.
The BriefWire