Key facts
- The UK government nationalised British Steel, previously owned by China's Jingye Group.
- China's Ministry of Commerce stated it "firmly opposes and is strongly dissatisfied with" the UK's decision.
- Beijing warned the move damaged Chinese companies' confidence in investing in the UK.
- The UK government cited job protection and safeguarding national steelmaking capacity as reasons for the takeover.
- China urged the UK to treat Chinese-funded enterprises fairly and protect their rights.
- China stated it would take resolute measures to safeguard the interests of Chinese enterprises.
The UK government has announced its decision to nationalise British Steel, a move that has drawn strong condemnation from China. The nationalisation comes after the steelmaker's previous owner, China's Jingye Group, considered shutting down the company's blast furnaces. Beijing's Ministry of Commerce stated on Friday that it "firmly opposes and is strongly dissatisfied with the British government's decision," warning that the action had damaged Chinese companies' confidence in investing in the UK.
On Thursday, the British government stated it would take the loss-making company into public ownership to protect jobs and a "vital national capability." Operational control of British Steel's Scunthorpe operations was taken in 2025 after Jingye considered closing the plant's blast furnaces, though Jingye retained ownership. China's Ministry of Commerce countered that Jingye had injected substantial capital into the company, sustaining operations and preserving jobs prior to the acquisition. The ministry accused the UK of disregarding Jingye's contributions and using national security as a pretext for nationalisation.
China urged the UK government to adhere to international rules, fulfil its obligations under the China-UK investment protection agreement, and treat Chinese-funded enterprises fairly. The ministry indicated it would monitor developments, support businesses pursuing legal action, and "take resolute measures to firmly safeguard the interests of Chinese enterprises."
The UK Department for Business and Trade asserted that the takeover would save thousands of jobs and ensure domestic steel production for defence and major construction projects. Business Secretary Peter Kyle stated, "British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead."
An independent evaluation will determine if Jingye receives compensation. The Scunthorpe furnaces are the last in the UK capable of producing "virgin steel" from raw materials. British Steel has operated at Scunthorpe for over 130 years. The plant currently employs approximately 2,700 people. Jingye acquired British Steel in 2020 and claims to have invested over £1.2 billion (€1.4 billion) to maintain operations amidst "ongoing production instability."