China Condemns UK Nationalization of British Steel as Investment Confidence Erodes

The United Kingdom’s decision to nationalize British Steel has drawn sharp criticism from Beijing, with China’s Ministry of Commerce warning that the move has “severely undermined” the confidence of Chinese companies considering investment in the UK.

The British government assumed full ownership of the loss-making steelmaker on Thursday, characterizing the intervention as necessary to protect national interests. British Steel operates the country’s last remaining primary steelmaking facilities at Scunthorpe, supporting roughly 2,700 direct jobs and many more across the supply chain.

Chinese conglomerate Jingye Group acquired British Steel for £70 million ($94 million) in 2020. By 2025, the company reported daily losses of £700,000 ($942,000). The path to nationalization stretched over more than a year. In March 2025, Jingye concluded after a consultation that the blast furnaces were financially unsustainable. The following month, the firm cancelled orders for essential raw materials, raising alarms that a shutdown was imminent.

In response, the UK government seized operational control in April 2025 to prevent furnace closures, though Jingye retained legal ownership until Thursday’s formal transfer. The state has pledged to appoint an independent valuer to determine whether compensation is owed to the Chinese owner.

Beijing’s commerce ministry denounced the expropriation in a Friday statement, asserting it “seriously damaged” Jingye’s legitimate rights and interests and disregarded the company’s contributions to the British economy. The ministry called on the UK to honor its obligations under the China-UK Investment Protection Agreement and vowed to support Chinese firms in defending their rights.

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