China Condemns UK Nationalisation Of British Steel, Demands Protection For Jingye

China has strongly criticised the United Kingdom's decision to nationalise British Steel, accusing the British government of violating the rights of the company's Chinese owner, Jingye Group and undermining confidence among Chinese investors.

The criticism came a day after the UK government announced it had taken the loss-making steelmaker into public ownership, arguing that the move was necessary to protect thousands of jobs and preserve Britain's ability to produce virgin steel.

In a statement issued on Friday, China's Ministry of Commerce said Beijing was "firmly opposed and strongly dissatisfied" with the decision.

According to the ministry, the nationalisation "seriously infringed upon Jingye's legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK."

Beijing also urged the British government to honour its commitments under the China–UK Bilateral Investment Treaty, a legally binding investment protection agreement signed by both countries in 1986.

"Disregarding Jingye's significant contribution to the UK economy and society, the British side forcibly took control of the company in the name of national security," the ministry said.

China added that it would closely monitor the situation and support Chinese companies in protecting their legitimate rights and interests, although it did not specify what measures it might take.

The nationalisation is expected to add fresh strain to relations between London and Beijing at a time of political transition in Britain, with Labour leader Andy Burnham preparing to assume office as the country's next prime minister.

The UK government had already taken operational control of British Steel's Scunthorpe plant in 2025, although ownership remained with Jingye Group. Officials argued that full public ownership was necessary to secure the long-term future of the business and protect a strategically important industry.

The move followed the passage of legislation through Parliament allowing the government to bring steel assets into public ownership where doing so serves the national interest.

Jingye has previously stated that British Steel was losing about £700,000 daily and is expected to seek compensation following the takeover.

Speaking in Parliament, Small Business Minister Blair McDougall said the government would appoint an independent valuer later this year to determine whether compensation is payable, noting that the final assessment "could be nil."

The government has acknowledged that operating the business will continue to require significant public funding. According to the National Audit Office, the Scunthorpe steelworks has been costing the government approximately £1.3 million a day, while Business Secretary Peter Kyle said ministers would continue covering the plant's running costs in the immediate term.

British Steel's Scunthorpe site directly employs around 2,700 workers and supports thousands of additional jobs across the supply chain.

The government has argued that maintaining production is essential because Scunthorpe remains the UK's only producer of certain grades of virgin steel required for major infrastructure projects, including rail and construction. Without the plant, Britain would become the only G7 nation unable to manufacture virgin steel domestically.

While the UK's long-term strategy is to transition towards cleaner electric arc furnace technology, ministers say maintaining production at Scunthorpe remains critical until alternative domestic capacity is fully established.