China warns UK over British Steel nationalisation, demands fair resolution

China has formally expressed concern over the United Kingdom's decision to fully nationalise British Steel, a major industrial asset previously held by Chinese steelmaker Jingye. The Chinese Foreign Ministry issued a statement indicating it would monitor how Britain handles the situation, warning that the outcome could significantly influence Chinese business confidence in UK investment opportunities and perceptions of British government reliability.

Jingye acquired British Steel for 70 million pounds in 2020 but faced mounting financial pressures, reporting daily losses of 700,000 pounds by 2025. The company initiated a consultation in March 2025 that concluded the steelmaking furnaces were not financially viable. Subsequent developments, including Jingye's cancellation of orders for essential steelmaking materials, raised concerns that the company intended to cease operations at its Scunthorpe facility.

The UK government moved to prevent such closure by taking operational control in April 2025, though Jingye retained nominal ownership until Thursday's full nationalisation. The government justified the takeover on grounds of national security and economic necessity, emphasizing the importance of preserving approximately 2,700 direct jobs at Scunthorpe and thousands more throughout the supply chain. British Steel represents the UK's only source of primary steelmaking capacity; its closure would make Britain the sole G7 nation without domestic virgin steel production capability.

China's Foreign Ministry has urged Britain to pursue a mutually acceptable resolution that includes compensation arrangements for Jingye's losses. The statement underscores Beijing's view that how the UK manages this situation will carry broader implications for Chinese investment in Britain.