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China has expressed strong opposition to the UK government’s decision to nationalize British Steel, describing the move as deeply unsatisfactory. The British authorities announced on Thursday that bringing the struggling steelmaker under public ownership was necessary to preserve jobs and maintain what they called a “vital national capability.”
Last year, the UK government took control over British Steel’s operations in Scunthorpe; however, the company remained under the ownership of China’s Jingye Group. This arrangement had limited the UK’s influence over the company’s future direction. China’s commerce ministry responded on Friday by stating that the UK’s action seriously violated Jingye’s legitimate rights and interests and severely damaged the confidence of Chinese investors in the British market.
The ministry urged the UK to honor its commitments under the China–UK Bilateral Investment Treaty. It criticized the British government for ignoring the important contribution Jingye has made to the UK economy and society, accusing it of seizing control of the company under the justification of national security. The statement also affirmed Beijing’s intent to closely watch the situation and support Chinese companies in defending their rights, though it did not clarify what measures might be taken.
This decision to nationalise British Steel risks creating tension between London and Beijing at a time when Andy Burnham is poised to assume the role of prime minister. As he begins his tenure, he will have to balance his strategy on this contentious matter with the broader economic interests tied to maintaining strong relations with the world’s second-largest economy
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