China expresses strong dissatisfaction with the UK government's decision to nationalise British Steel from the Jingye Group.
The UK government officially nationalised British Steel on Thursday, taking full ownership of the loss-making firm from the Chinese owner, Jingye Group. The administration announced the move was necessary on national security grounds to protect 2,700 direct jobs in Scunthorpe and safeguard vital national capabilities. China's commerce ministry expressed strong dissatisfaction with the decision, stating it "seriously infringed" upon the rights of Jingye and could undermine the confidence of Chinese investors in the UK. Beijing urged the British government to fulfill its obligations under the 1986 Bilateral Investment Treaty and seek a mutually acceptable compensation agreement. While the Scunthorpe plant currently costs the government approximately £1.3 million a day to operate, the administration maintains that keeping the blast furnaces running is essential. If the plant closes, the UK would become the only G7 nation without the ability to produce virgin steel. The government plans to appoint an independent valuer this autumn to determine the final compensation owed to Jingye.