China Expresses Strong Opposition to UK Nationalization of British Steel

China has voiced strong condemnation regarding the nationalization of British Steel, stating it “firmly opposes and is strongly dissatisfied with the British government’s decision.”

On Thursday, the UK government announced that transitioning the loss-making company to public ownership was necessary to preserve jobs and protect a “vital national capability.”

While the UK government took control of operations in Scunthorpe last year, the company remained under the ownership of China’s Jingye Group, which constrained the government’s ability to direct its future path.

China’s commerce ministry issued a statement on Friday asserting that these actions “seriously infringed upon Jingye’s legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK.”

The ministry further urged Britain to “faithfully fulfil” its commitments under the China–UK Bilateral Investment Treaty.

“Ignoring Jingye’s substantial contribution to the UK economy and society, the British side forcibly assumed control of the company citing national security concerns,” the ministry stated.

The statement concluded that Beijing would monitor the situation closely and support Chinese firms in defending their rights, though it did not detail specific countermeasures.

The decision to nationalize British Steel threatens to destabilize diplomatic relations between London and Beijing, occurring just as Andy Burnham is scheduled to assume the role of prime minister on Monday.

The incoming prime minister will face the challenge of balancing this geopolitical friction against the economic advantages of maintaining strong ties with the world’s second-largest economy.

The China-UK Bilateral Investment Treaty, a legally binding agreement signed in 1986, was established to facilitate and protect investments between the two nations.

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