China has condemned the United Kingdom’s decision to nationalise British Steel, accusing the British government of violating investment protections and undermining the confidence of Chinese investors.
Beijing said it was firmly opposed to the move and warned it would closely monitor developments while supporting Chinese companies in protecting their legal rights.
China’s Ministry of Commerce said the decision had infringed on the interests of British Steel’s Chinese owner, Jingye Group.
It said: “We firmly oppose and are strongly dissatisfied with the British government’s decision.”
The ministry argued that the UK had disregarded Jingye’s contributions to the British economy by taking control of the company under the guise of national security.
According to the ministry, “Disregarding Jingye’s significant contribution to the UK economy and society, the British side forcibly took control of the company in the name of national security.”
China further urged Britain to honour its obligations under the China–UK Bilateral Investment Treaty, describing the move as a violation of the protections guaranteed to foreign investors.
The ministry said the decision “seriously infringed upon Jingye’s legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK.”
The criticism followed Thursday’s announcement by the UK government that British Steel would be brought into public ownership to protect jobs and preserve what it described as a vital national industrial capability.
The government had already taken operational control of the Scunthorpe steelworks last year, although ownership remained with Jingye Group, limiting ministers’ ability to determine the company’s future.
The nationalisation came after Parliament approved legislation allowing the government to take steel companies into public ownership where it serves the public interest.
Jingye is seeking compensation after previously stating that British Steel had been losing about £700,000 every day.
The move is expected to test diplomatic relations between London and Beijing as Andy Burnham prepares to become Britain’s next prime minister on Monday, with analysts saying his incoming administration will have to balance national industrial priorities against maintaining economic ties with China.
British ministers have argued that keeping the Scunthorpe plant operational is essential because it remains the UK’s only producer of certain grades of virgin steel required for major infrastructure projects, including rail and construction.
Erizia Rubyjeana
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