China has condemned the UK government's decision to nationalize British Steel, urging London to adhere to international rules and treat Chinese-invested enterprises fairly. The Chinese firm Jingye, which purchased British Steel in 2020, lost control of the company when the UK government intervened last year due to financial struggles. The nationalization, which took effect this week, marks the first time British Steel has been under government ownership since 1988.
The UK government stepped in to prevent the closure of Britain's last steel plant capable of producing steel from scratch, located in Scunthorpe, northern England. Jingye had declared the plant financially unviable, prompting the government to take control in April 2025 and announce plans to nationalize it in May this year.
China's Commerce Ministry expressed 'strong dissatisfaction' with the British government, accusing it of 'forcibly' taking over British Steel under the pretext of national security. The ministry called for the UK to treat Chinese-invested enterprises equally and fairly.
Jingye demanded compensation from the UK government in June for losses incurred from investments made before the takeover. The nationalization is seen as a critical move by London to safeguard Britain's long-term economic security amid the decline of its steel industry.
This development highlights the ongoing tensions between China and the UK over trade and investment practices, with Beijing advocating for fair treatment of its enterprises abroad.
