China Condemns UK’s Nationalization of British Steel, Warns of Investment Confidence Impact

China’s Ministry of Commerce expressed strong opposition to the UK’s decision to nationalize British Steel, criticizing the move as damaging to Chinese companies’ trust in British investment opportunities. The statement, issued on Friday, highlighted concerns over the use of national security justifications and called for adherence to international agreements protecting Chinese economic interests.

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The UK government assumed control of British Steel’s Scunthorpe plant in 2025 after Jingye, the Chinese owner, threatened to shut down blast furnaces. While the company remained under Jingye’s ownership, the takeover aims to preserve employment and maintain critical domestic steel production capabilities, particularly for infrastructure and defense sectors.

According to the Chinese ministry, Jingye had injected over £1.2 billion into the financially troubled steelmaker since acquiring it in 2020, preventing immediate closure and sustaining jobs despite prolonged operational instability. The ministry accused the UK of overlooking these contributions and using national security as a rationale for intervention.

The UK Department for Business and Trade defended the nationalization as essential for job security and national strategic interests. Business Secretary Peter Kyle emphasized plans to stabilize the business, support dependent communities, and transform the steel industry into a sustainable, low-carbon operation.

An independent review will assess potential compensation for Jingye. The Scunthorpe site, operational since the 19th century, is the UK’s sole facility producing virgin steel from raw materials and currently employs approximately 2,700 workers.

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