China rebukes UK over nationalisation of British Steel

The United Kingdom has completed the nationalisation of British Steel, transferring full ownership from its Chinese parent company Jingye to the British government. The decision represents the culmination of efforts spanning more than a year to secure the nation's sole primary steelmaking operation.

British Steel operates the Scunthorpe steelworks and supports approximately 2,700 jobs across its main facility and wider supply chain. Jingye, one of China's largest companies, had acquired British Steel for 70 million pounds in 2020 but faced mounting financial pressures, with reported daily losses reaching 700,000 pounds by 2025. In March 2025, Jingye's internal assessment concluded that the steelmaking furnaces were not financially viable. The following month, the company cancelled orders for essential steelmaking materials, prompting UK government intervention.

The government initially seized operational control in April 2025 while Jingye retained nominal ownership. This week's transfer of full ownership to the state marks the final step in the nationalisation process. The UK government has stated it will appoint an independent valuer to determine whether compensation is owed to Jingye.

China's Ministry of Commerce responded with a formal rebuke on Friday, asserting that the expropriation has damaged Jingye's legitimate interests and severely undermined confidence among Chinese investors in the UK market. The ministry characterised the takeover as forcible and accused the UK of disregarding Jingye's economic contributions. Beijing has invoked the China-UK Investment Protection Agreement and pledged to assist Chinese companies in defending their rights.