China's Jingye seeks compensation from UK over British Steel nationalization

Chinese steelmaker Hebei Jingye Group Co. Ltd. has initiated consultation procedures with the U.K. government under a bilateral investment treaty, seeking compensation for losses after the state takeover of British Steel Ltd. Jingye acquired British Steel in 2020 and is reportedly seeking over £1 billion in compensation, a figure that includes debts owed by the company and its investments. The UK government, led by Keir Starmer, nationalized the steelworks last April, citing national security concerns and the importance of retaining domestic steel production capabilities. Fears of significant job losses were also a factor in the government's decision. Jingye stated it hopes the UK government will safeguard the legitimate rights and interests of Jingye and other Chinese businesses, as well as global investors. Since the nationalization, Jingye has remained the economic owner of the plants. Industry insiders suggest that recent UK plans to reduce steel import tariffs could make British Steel a more attractive business, potentially aiding the government in finding new private owners after a period of state control.