In brief
China’s commerce ministry has condemned the UK’s nationalisation of British Steel, calling the move a violation of Jingye Group’s rights and a blow to Chinese business confidence. Britain justified the takeover as a safeguard of jobs and a vital national capability, while paying a daily cost that may exceed a million pounds. Beijing’s rebuke arrives as Britain prepares to appoint a new prime minister, adding pressure on future trade ties with the world’s second‑largest economy.
China has blasted the UK government for nationalising British Steel, stating it “firmly opposes and is strongly dissatisfied” with the decision.
Britain argued that taking the loss‑making plant into state ownership would protect jobs and preserve a “vital national capability.” The move came after Parliament granted the government powers to bring the steel sector under public ownership when a public‑interest test is met.
The US-owned Scunthorpe plant, though now government‑controlled, was still owned by China’s Jingye Group, limiting the UK’s ability to steer its future. Jingye has already warned that the company is losing £700,000 a day and seeks compensation.
China’s commerce ministry warned that the UK’s action “seriously infringed upon Jingye’s legitimate rights and interests” and “severely undermined the confidence of Chinese companies investing in the UK.” They urged Britain to honour the China‑UK Bilateral Investment Treaty and to preserve the rights of Chinese investors.
The new takeover puts pressure on Britain as it prepares to appoint a new prime minister on Monday, with the incoming leader weighing economic ties to China against domestic priorities.
Bolet. Under the National Audit Office, the Scunthorpe steelworks cost the British Treasury about £1.3m per day. Business Secretary Peter Kyle confirmed that the government would cover the plant’s running costs for the foreseeable future, though it is unlikely they will run it in the long term.
For further analysis, see how the nationalisation might reshape Britain’s industrial policy and its relation with China.
