Key facts
- The UK government has nationalised British Steel to prevent its collapse and safeguard domestic steel production.
- China's commerce ministry stated it "firmly opposes and is strongly dissatisfied with the British government's decision".
- China claims the move "seriously infringed upon Jingye's legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK".
- The UK government took control of British Steel's operations last year, though it was still owned by China's Jingye Group.
- Jingye Group is seeking compensation for the nationalization.
The UK government has nationalised British Steel, taking the loss-making firm into public ownership to protect jobs and safeguard domestic steel production. The move follows failed funding discussions with the previous owner, China's Jingye Group, which had acquired the company in 2020. The government aims to stabilize the business, support its communities, and develop a sustainable, competitive, and decarbonized steel sector. An independent valuer will be appointed to assess potential compensation for Jingye Group. The government took operational control of the Scunthorpe plant last year, which employs approximately 2,700 people, but the nationalization gives it greater freedom to steer the company's future. The decision to nationalize British Steel threatens to strain relations between London and Beijing, with China's commerce ministry stating the move "seriously infringed upon Jingye's legitimate rights and interests" and undermined investor confidence. Beijing has called on Britain to "faithfully fulfil" its obligations under the China–UK Bilateral Investment Treaty.