London: China has criticised the United Kingdom’s decision to nationalise British Steel, warning that the move has ‘severely undermined’ the confidence of Chinese companies considering investments in the UK.
The UK government officially took ownership of British Steel, describing the decision as necessary to protect national interests and secure the future of the country’s primary steelmaking industry. British Steel is the UK’s only producer of primary steel and supports around 2,700 jobs at its Scunthorpe steelworks, along with thousands more across the wider supply chain.
British Steel was acquired in 2020 by Chinese steelmaker Jingye Group for £70 million (approximately $94 million). However, the company reported mounting financial losses, stating that it was losing around £700,000 (about $942,000) every day by 2025.
The nationalisation follows months of growing concerns over the company’s future. In March 2025, Jingye concluded through a consultation that British Steel’s blast furnaces were no longer financially sustainable. A month later, reports emerged that the company had cancelled orders for essential steelmaking materials, raising fears of an imminent shutdown of the furnaces.
In response, the UK government intervened in April by taking operational control of British Steel while Jingye remained the legal owner. The ownership has now formally transferred to the British government, which said an independent valuer will determine whether compensation should be paid to Jingye.
Reacting to the decision, China’s Ministry of Commerce accused the UK of forcibly taking over the company and ignoring Jingye’s contributions to the British economy. The ministry said the nationalisation had seriously harmed the company’s legitimate rights and interests while damaging the confidence of Chinese investors.
Beijing also urged the UK to honour its commitments under the China–UK Investment Protection Agreement and pledged support for Chinese companies seeking to protect their legal rights. The dispute adds fresh tension to UK-China economic relations at a time when both countries are balancing national security concerns with foreign investment and industrial policy.
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