The Chinese firm Jingye Group is seeking financial restitution following the United Kingdom’s decision to fully nationalise the struggling British Steel.
Published On 18 Jul 2026
China’s Ministry of Foreign Affairs has announced it will closely observe the UK’s nationalisation of British Steel, a company previously under Chinese ownership.
On Thursday, the UK government moved to fully nationalise British Steel—previously owned by the Jingye Group—citing national security concerns to justify the takeover of the loss-making enterprise.
“This issue has garnered significant attention in China,” the Chinese Foreign Ministry stated in a recent communiqué.
“The manner in which Britain manages this situation will have a direct impact on Chinese investor confidence in the UK’s investment environment and will influence Chinese public perception regarding the credibility of the British government,” the statement continued.
The Chinese ministry further called upon the United Kingdom to reach a mutually beneficial resolution, specifically including provisions for compensation.
Jingye Steel indicated last week that it intends to seek compensation from the UK for the financial losses sustained during its investment in British Steel.
As the sole provider of primary steelmaking in the United Kingdom, British Steel supports roughly 2,700 jobs at its primary Scunthorpe works, along with thousands of additional roles within the broader supply chain.
Jingye, a major player among China’s top 100 companies, acquired British Steel for £70 million ($94m) in 2020. By 2025, Jingye reported daily losses amounting to £700,000 ($942,000).
The nationalisation process for British Steel has been under consideration for over a year. Following a consultation in March 2025, Jingye concluded that the existing British Steel furnaces were no longer financially viable.
Shortly thereafter, reports emerged that Jingye had cancelled orders for essential steelmaking materials, sparking concerns regarding a potential shutdown of the blast furnaces.
The closure of the Scunthorpe facility would leave the United Kingdom as the only G7 nation without the capacity for virgin steel production.
To prevent such an outcome, the UK government assumed operational control of British Steel from Jingye in April, while the Chinese company maintained ownership at that time.
The UK government asserted on Thursday that the nationalisation of British Steel was essential to protecting domestic jobs, securing supply chains, safeguarding national security, and supporting major infrastructure projects.
