China stated on Friday that it strongly objects to the United Kingdom’s decision to nationalise British Steel and called for equitable treatment of Chinese businesses operating in Britain.
The UK on Thursday nationalised British Steel, taking control of the loss-making firm previously owned by Chinese steelmaker Jingye, in an effort to “protect the future of steel production in the UK”.
A spokesperson from China’s Ministry of Commerce said the UK had “forcibly” taken over the company and “disregarded” Jingye’s contributions to the British economy and society.
The spokesperson said the move “seriously damaged” Jingye’s legitimate rights and interests and “severely undermined” Chinese companies’ confidence in investing in the UK, adding that Beijing would “closely monitor developments and support Chinese firms in protecting their rights”.
He urged the UK to honour its obligations under the China-UK Investment Protection Agreement.
The spokesperson did not specify what protecting Chinese companies’ rights would involve.
National interest
The nationalisation of British Steel is the latest in a series of UK measures to support its steel industry, including new tariffs and quotas to guard against cheap steel dumping and a tariff agreement with the United States.
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability,” outgoing Prime Minister Keir Starmer said.
The government seized operational control of British Steel from Jingye in April 2025 to prevent the closure of the Scunthorpe steelworks in northern England and protect 2,700 plant jobs, plus thousands more across the supply chain.
The plant, the country’s last remaining primary steelmaking site, supplies the rail, construction and automotive industries.
In recent years it has struggled with high UK energy costs and a global steel glut. Business minister Peter Kyle told Times Radio the government was spending more than £1 million a day to keep it running.
“We need that virgin steel production because if this were to disappear, we would become at the mercy of international markets and supply from other countries,” he said.
Estimating the government had already spent £640 million (€752 million) to keep the plant open, Kyle said: “It is value for money for the British public, but we need to make sure that this business moves forward.”
Legislation allowing the government to take ownership of British Steel won final approval on Wednesday after the state failed to find a buyer for the company, which was privatised under Margaret Thatcher in 1988.
Industry group UK Steel said nationalisation was the right move and the sector now needed “a long-term plan that restores British Steel to commercial sustainability”.
(with newswires)
