Chinese company demands compensation from the UK over British Steel nationalisation

Jingye Group, the former owner of British Steel, is demanding compensation from the UK government for investment losses. This demand follows the British government's decision to take operational control of the company last year. The UK government intervened after Jingye Group indicated it might close the blast furnaces at its Scunthorpe plant, the last in the UK to produce virgin steel from raw materials. Jingye Group stated that the nationalisation has damaged the UK government's credibility, deterred international investors, and resulted in significant losses for the company and British taxpayers. The Chinese company also called on the UK government to cease actions that violate international investment rules.

China is protesting the UK government's nationalisation of British Steel, demanding compensation for investment losses. Jingye Steel, the Chinese company that previously owned British Steel, claims the UK has "trampled on international investment rules" by offering "almost zero compensation" after taking operational control last year. The UK government nationalised the plant to protect its steelmaking capacity, save jobs, and ensure a domestic supply of steel for critical projects, stating the plant was losing significant amounts of money daily. China's Ministry of Commerce and Ministry of Foreign Affairs have criticized the move, asserting it damages Jingye's rights and undermines investor confidence, while also referencing a bilateral investment treaty that protects against arbitrary expropriation without compensation. The dispute arises as the UK faces a political leadership change.

China has expressed strong opposition and dissatisfaction with the UK government's decision to nationalize British Steel, stating it "firmly opposes" the move. The UK government justified the nationalization as necessary to protect jobs and safeguard a "vital national capability." This action infringes upon the legitimate rights of China's Jingye Group, the previous owner, and undermines Chinese companies' confidence in investing in the UK, according to China's commerce ministry. Beijing has called on Britain to fulfill its obligations under the China–UK Bilateral Investment Treaty and stated it will monitor developments and support Chinese firms in protecting their rights. The nationalization decision risks straining UK-China relations.

The UK government has nationalised British Steel, the country's sole primary steel producer, to prevent its closure by its former Chinese owner, Jingye. This move, which transferred ownership to the UK government on Thursday, aims to protect national interests and approximately 2,700 jobs. Jingye, which acquired British Steel in 2020, had been experiencing significant daily losses and had recently cancelled orders for essential materials, raising fears of a shutdown. China's Ministry of Commerce has rebuked the UK, stating that the nationalisation has "severely undermined" Chinese companies' confidence in investing in the UK and "seriously damaged" Jingye's rights and interests. The UK government will now assess any potential compensation for Jingye.

China's government has expressed strong dissatisfaction with the UK's decision to nationalize British Steel. The move, announced on Thursday, aims to protect the future of steel production and jobs at the Scunthorpe plant. British Steel was previously owned by the Chinese company Jingye, which had threatened to walk away from the struggling business. China's Ministry of Commerce stated that the nationalization dealt a severe blow to Chinese companies' confidence in investing in the UK and vowed to support Jingye in safeguarding its rights. The UK government, under Prime Minister Keir Starmer, asserted that nationalization was necessary to secure steelmaking and protect a vital national capability.