China hits out at British Steel nationalisation

What the report says

BBC World News reports that China has condemned the UK government’s decision to nationalise British Steel, saying Beijing “firmly opposes” the move and is “strongly dissatisfied.” The UK said bringing the loss-making company into public ownership would protect jobs and preserve a key industrial capability. British Steel’s Scunthorpe operations had already been under UK government control since last year, but ownership remained with China’s Jingye Group.

According to the BBC, China’s commerce ministry said the decision harmed Jingye’s rights and weakened Chinese firms’ confidence in investing in Britain. It also urged the UK to meet its obligations under the 1986 China–UK Bilateral Investment Treaty. The ministry said it would follow developments and support Chinese companies in defending their interests, though it did not detail what steps could follow.

The UK government said talks with Jingye had taken place but no deal was reached that offered value for taxpayers. Ministers said an independent valuer would be appointed in the autumn to assess any compensation, which could potentially be zero. Jingye has previously said British Steel was losing £700,000 a day; the BBC said it had not received Jingye’s response to the latest announcement.

The Scunthorpe plant directly employs about 2,700 people and supports additional supply-chain jobs. The BBC notes that if it stopped producing virgin steel, the UK would be the only G7 country without that capability. The dispute may complicate London-Beijing relations as the incoming prime minister, Andy Burnham, prepares to enter Downing Street.