China Criticises UK Nationalisation of British Steel

China has sharply opposed the UK’s move to take British Steel into public hands, saying the decision "firmly opposes and is strongly dissatisfied" with how it was carried out.

The UK government defended the nationalisation, arguing it was necessary to protect jobs and preserve a "vital national capability" that would have otherwise shut down.

Britain took control of the Scunthorpe plant last year, when the company was still owned by China’s Jingye Group, limiting the new administration’s ability to direct the firm’s future.

China’s commerce ministry said the actions "seriously infringed upon Jingye’s legitimate rights and interests" and "severely undermined the confidence of Chinese companies investing in the UK".

The ministry called on Britain to "faithfully fulfil" its obligations under the China‑UK Bilateral Investment Treaty and warned it would monitor the situation closely, offering support for Chinese firms to protect their rights.

The decision raises worries that Britain‑China relations could be strained just as Andy Burnham prepares to assume the role of Prime Minister. The new PM will need to balance economic ties with the world’s second‑largest economy against national security concerns.

Parliament passed legislation allowing the government to bring the steel industry into public ownership under a public‑interest test, and Jingye is seeking compensation after previously saying the business lost about £700,000 a day. The UK has been covering operating costs, with estimates saying the Scunthorpe works cost the government up to £1.3 million daily, a figure the Business Secretary Peter Kyle said it would need to cover for the short term.