China condemned the UK's decision to nationalise British Steel, saying it “firmly opposes and is strongly dissatisfied with the British government's decision” and warning that the move had damaged Chinese companies’ confidence in investing in the UK, the country's Ministry of Commerce said on Friday.
On Thursday, the British government announced that it would take the loss-making company into public hands to protect jobs and safeguard a “vital national capability”.
The UK government took operational control of British Steel’s Scunthorpe operations in 2025 after Jingye considered closing the plant’s blast furnaces. However, the Chinese group retained ownership of the company, limiting the government’s ability to determine its future.
In a statement published on Friday, China’s Ministry of Commerce said: “British Steel had been incurring losses for years before its acquisition by Jingye. Following the acquisition, Jingye injected substantial capital into the company, thereby sustaining its operations and preserving jobs.”
The ministry accused the UK of disregarding Jingye’s contribution to the British economy and society and using national security to justify taking control of and nationalising the company.
It added: "The Chinese side urges the UK government to abide by relevant international rules, earnestly fulfil its obligations under the China-UK investment protection agreement, treat Chinese-funded enterprises in the UK fairly and impartially, and fully safeguard their legitimate rights and interests."
The ministry said it would closely monitor developments, support businesses seeking to defend their rights through legal action, and "take resolute measures to firmly safeguard the interests of Chinese enterprises".
The UK Department for Business and Trade said on Thursday that the takeover would save thousands of jobs and protect the national interest by ensuring the domestic production of steel for major construction projects and the defence industry.
"British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead,” Business Secretary Peter Kyle said in a statement.
An independent evaluation will be carried out to determine whether Jingye will receive compensation.
The furnaces at Scunthorpe are the last in the UK capable of producing "virgin steel" from raw materials.
British Steel and its predecessors have been making steel at Scunthorpe for more than 130 years, building on the UK’s development of improved steelmaking technology during the Industrial Revolution. The plant currently employs about 2,700 people.
Jingye bought British Steel in 2020 and says it has invested more than £1.2bn (€1.4bn) to keep the plant running in the face of “ongoing production instability”.
