Beijing has sharply criticised the United Kingdom's decision to nationalise British Steel, warning that the move has "severely undermined" Chinese companies' confidence in investing in Britain and "seriously damaged" the legitimate rights of the firm's former owner, Jingye Group.
The UK government formally transferred ownership of British Steel to public hands on Thursday, describing the step as necessary to protect national interests and safeguard approximately 2,700 jobs. British Steel operates the country's only remaining primary steelmaking facility, centred on a large integrated steelworks in Scunthorpe, a town in northern England. Jingye, one of China's 100 largest companies, had acquired British Steel for £70 million ($94m) in 2020, but by 2025 reported losses of around £700,000 ($942,000) per day. After Jingye concluded in early 2025 that its blast furnaces were not financially viable and cancelled key materials orders — raising fears of an imminent shutdown — the UK government first seized operational control while leaving formal ownership with Jingye. Thursday's action completed the process by transferring ownership itself. The government said an independent valuer would be appointed to assess whether any compensation is owed to Jingye.
China's Ministry of Commerce responded on Friday with a formal statement saying it "firmly opposes and is strongly dissatisfied" with the British government's decision. Beijing accused London of acting "in the name of national security" while disregarding Jingye's contributions to the British economy. The ministry called on the UK to fulfil its obligations under the China–UK Bilateral Investment Treaty, a legally binding agreement signed in 1986 designed to promote and protect investments between the two countries, and said it would support Chinese companies in protecting their legal rights, without specifying what measures it might take.
The dispute arrives at a diplomatically sensitive moment. The nationalisation threatens to strain the broader relationship between London and Beijing at a time when the incoming British prime minister — set to take office on Monday — will need to balance national industrial policy against the economic benefits of ties with the world's second-largest economy. How the new government handles compensation negotiations and engages with Beijing's treaty claims is likely to set the tone for UK–China economic relations in the months ahead.