China Criticizes UK Over British Steel Nationalization, Seeks Resolution

By David Okafor

China's Ministry of Foreign Affairs has issued a warning to the United Kingdom following the nationalization of British Steel, which was previously owned by China's Jingye Group. The UK government enacted the Steel Industry (Nationalisation) Act 2026 on July 16, bringing the struggling steelmaker into full public ownership.

The UK justified its decision by citing the need to protect critical steelmaking capacity, jobs, and national security. British Steel, the UK's only primary steelmaking source, supports approximately 33,000 direct jobs and an additional 36,000 in the wider supply chain.

China's Ministry of Commerce had previously urged the UK to respect Jingye's substantial investment and adhere to principles of fairness and non-discrimination. The Ministry of Foreign Affairs echoed these sentiments, warning that the nationalization could affect how Chinese investors view the UK investment environment.

Jingye Group, which acquired British Steel for £70 million in 2020, has reportedly been losing £700,000 per day. The company is now seeking compensation through legal channels. The UK government plans to establish a compensation scheme by autumn, appointing an independent third-party valuer to assess appropriate compensation.