China hits out at British Steel nationalisation
The UK government said taking the firm into public hands would safeguard "a vital national capability".
By BBC News
China has criticised the UK government’s decision to nationalise British Steel, arguing the move undermines the Chinese owner’s investment rights. The UK government said taking the firm into public hands would safeguard “a vital national capability” for the country’s steelmaking sector .
Business Secretary Peter Kyle stated that British Steel now belongs to the British people and that the focus is on stabilising the business and backing communities that rely on it . The Department for Business and Trade announced the nationalisation on Thursday after the company’s Chinese owners, Jingye Group, moved to shut the plant’s blast furnaces .
The government seized operational control of British Steel from Jingye in April 2025 to prevent the closure of the steelworks in Scunthorpe in northern England and to protect 2,700 jobs at the plant . Jingye Steel has publicly demanded prompt, adequate and effective compensation from the UK government for its investment, characterising the takeover as ranging from “a forced takeover to outright expropriation” .
The company noted that British authorities have provided no substantive response to its compensation demands in the 14 months since operational control was seized . An independent evaluation will be carried out to determine whether any compensation will be paid to Jingye Group, the former owner .