Why is China protesting about the nationalisation of British Steel?

What the report says

Al Jazeera reported that Chinese owner Jingye Steel is seeking compensation from the United Kingdom after the government nationalised British Steel, escalating a dispute with Beijing over investment protections. Jingye said on Sunday that London should halt what it described as breaches of international investment rules and compensate it for losses linked to the takeover.

The UK government says the move was intended to preserve domestic steelmaking and stop the possible closure of blast furnaces at British Steel’s Scunthorpe site in northern England. The plant is described as the UK’s last facility producing “virgin steel” from raw materials, a capability ministers say is important for construction, defence and wider industrial resilience. Business Secretary Peter Kyle said the government’s priority is stabilising the company and supporting a more sustainable steel sector.

China’s Ministry of Commerce accused the UK of damaging Jingye’s rights and investor confidence by taking over the company on national security grounds, while China’s Foreign Ministry pointed to a 1986 bilateral investment treaty that includes protections against uncompensated expropriation. Jingye also cited UK operating costs for British Steel, saying public spending had reached 377 million pounds by the end of January and could rise substantially in coming years.

British Steel has had years of financial instability. Tata Steel sold it to Greybull Capital in 2016, the UK insolvency service took control in 2019, and Jingye bought it in 2020. Al Jazeera said the dispute comes as Labour leader Andy Burnham is expected to replace Keir Starmer as prime minister, potentially putting relations with China on the new government’s early agenda.