China said on July 17 that it “firmly opposes” the U.K. government’s decision to take British Steel into full public ownership, with Beijing urging the country to abide by “international rules.”
Chinese firm Jingye, which bought British Steel in 2020, lost control of it last year when the U.K. government intervened at the struggling firm.
Britain’s last factory that can make steel from scratch had faced imminent closure after Jingye said the plant in Scunthorpe, northern England, was no longer financially viable.
The announcement prompted the government to step in and take control of it in April 2025 and in May this year, it said it would introduce legislation to nationalize it.
China’s Commerce Ministry expressed its “strong dissatisfaction” with the British government in a statement, after the legislation came into effect on July 15.
It accused Westminster of “forcibly” taking over British Steel “under the pretext of national security.”
“China urges the British government to abide by relevant international rules [and] treat Chinese-invested enterprises in the U.K. fairly and equally,” the statement added.
Jingye demanded compensation from the U.K. government in June for losses from investments made before London took over operating the plant.
Nationalization brings British Steel back into government ownership for the first time since 1988.
