China warns UK over British Steel nationalisation, demands fair resolution

What the report says

Al Jazeera, citing Reuters, reports that China’s Ministry of Foreign Affairs has warned it will watch closely after the United Kingdom moved to fully nationalise British Steel, a loss-making company previously owned by Chinese steelmaker Jingye. The UK announced the takeover on Thursday, saying it was acting on national security grounds and to protect domestic steelmaking.

In a Saturday statement, China’s foreign ministry said the case had attracted broad attention in China and argued that the UK’s handling of it could affect Chinese investors’ confidence in Britain’s investment environment. Beijing urged London to pursue a resolution acceptable to both sides, including compensation arrangements. Jingye said last week that it wants the UK to compensate it for losses linked to its investment in British Steel.

British Steel operates the UK’s only primary steelmaking capacity and supports about 2,700 jobs at its main Scunthorpe works, with more jobs connected through the supply chain. Jingye bought the company in 2020 for 70 million pounds, or about $94m. By 2025, the Chinese firm said British Steel was losing 700,000 pounds, or about $942,000, each day.

The dispute follows more than a year of government intervention. Al Jazeera reports that Jingye concluded in March 2025 that British Steel’s furnaces were not financially sustainable, and concerns grew after it cancelled orders for an essential steelmaking input. The UK took operational control in April to prevent the Scunthorpe blast furnaces from closing, before moving to full public ownership. The government says nationalisation is needed to protect jobs, supply chains, infrastructure projects and national security.