China Condemns UK’s Nationalization of British Steel
The UK government has fully nationalized British Steel, which had been owned by Chinese company Jingye, through the passage of the Steel Industry Act. The move has drawn a strong reaction and official condemnation from China’s Ministry of Commerce, with Beijing describing it as a blow to the legitimate rights of its investors.
China on Friday expressed firm opposition to the UK government’s decision to nationalize British Steel and called for fair treatment of Chinese companies. The development came after Britain on Thursday took full control of the loss-making steel producer, previously owned by Chinese steelmaker Jingye, in order to safeguard the future of domestic steel production.
In an official statement, China’s Ministry of Commerce strongly condemned London’s action. The statement said: “The British side has forcibly taken over the company and ignored Jingye’s contribution to the UK economy and society. This approach has seriously harmed Jingye’s legitimate rights and interests and has severely undermined the confidence of Chinese companies in investing in the UK.”
The background to the dispute dates back to Jingye’s decision to shut down the blast furnaces at the Scunthorpe plant in North Lincolnshire, which prompted a response from the UK Parliament in April of last year and the passage of special measures legislation to keep the facility operating. Now, with the approval of the Steel Industry (Nationalization) Act 2026 and the granting of royal assent, ministers have been authorized to transfer the shares or assets of steel companies into public ownership.
The UK government has said that, with the appointment of a new leadership team, it will focus on stabilizing the business and transforming it into a “sustainable and low-carbon enterprise.”
In response, Chinese officials said they are closely monitoring the developments and will support their companies in protecting their legal rights. Beijing also urged the UK to honor its commitments under the China-UK investment protection agreement. However, the statement from China’s Ministry of Commerce did not provide details about possible measures should the situation continue.