China warns UK over British Steel nationalisation, demands fair resolution

Chinese institution Jingye is seeking compensation aft the UK’s determination to afloat nationalise loss-making British Steel.

China’s Ministry of Foreign Affairs has said it volition intimately show the United Kingdom’s nationalisation of British Steel, antecedently owned by a Chinese steelmaker.

The UK authorities nationalised British Steel connected Thursday, afloat taking implicit the loss-making company, past nether the ownership of Jingye, connected nationalist information grounds.

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“The contented has drawn wide attraction successful China,” the Chinese Foreign Ministry said successful a connection connected Saturday.

“How Britain handles the substance volition straight impact Chinese investors’ assurance successful the UK’s concern clime and signifier nationalist perceptions successful China of the British government’s credibility,” it said.

The Chinese ministry besides urged Britain to question a mutually acceptable solution, including arrangements for compensation.

Jingye Steel said past week it wants Britain to compensate it for losses incurred done its concern successful British Steel.

British Steel is the lone root of superior steelmaking successful the UK. It supports astir 2,700 jobs crossed its main steelworks successful Scunthorpe and thousands much crossed the wider proviso chain.

Jingye – which is among the 100 biggest companies successful China – bought British Steel for 70 cardinal pounds ($94m) successful 2020. By 2025, Jingye said it was losing 700,000 pounds ($942,000) each day.

British Steel’s nationalisation has been successful the works for much than a year. In March 2025, Jingye carried retired a consultation that concluded that the British Steel furnaces were not financially sustainable.

The pursuing month, it emerged that Jingye had cancelled orders for a cardinal worldly utilized successful the steelmaking process, stoking fears that it was readying to unopen down the blast furnaces.

Closing the Scunthorpe works would marque Britain the lone G7 state without the quality to nutrient virgin steel.

In April, the UK authorities took operational power of British Steel from Jingye to halt that from happening, though the Chinese institution retained ownership.

The UK authorities said connected Thursday that nationalising British Steel was captious to securing jobs and proviso chains, safeguarding large infrastructure projects and nationalist security.