China has expressed strong opposition and firm dissatisfaction over the British government's decision to nationalize British Steel, a subsidiary of China's Jingye Group, warning that the move severely undermines the legitimate rights and interests of Chinese enterprises and discourages future Chinese investment in the UK.
In a statement posted on its website on July 16, China's Ministry of Commerce (MOFCOM) said that British Steel had been loss-making for years before Jingye's acquisition, and that after the takeover, Jingye injected substantial capital into the company, sustaining its operations and preserving jobs.
"Disregarding Jingye's significant contributions to the UK's economy and society, the UK has forcibly taken over and nationalized British Steel under the pretext of national security. This has seriously harmed Jingye's legitimate rights and interests and severely dampened Chinese enterprises' confidence in investing in the UK," the spokesperson said.
Beijing urged London to comply with relevant international rules and fulfill its obligations under the China-UK bilateral investment protection treaty, treating Chinese-invested enterprises in the UK fairly and equitably while fully safeguarding their lawful rights and interests.
The MOFCOM vowed to "closely monitor the developments of the matter, support Chinese enterprises in safeguarding their rights through legal means, and take strong measures to resolutely uphold their interests".
The nationalization follows the UK government's initial takeover of British Steel in 2025 through the Steel Industry (Special Measures) Act, which stripped Jingye of its shareholder control, management and earnings rights. In May 2026, the government notified plans to fully nationalize the company, and the Steel Industry (Nationalization) Bill (draft) was published.
Jingye Group, a private Chinese steelmaker, acquired British Steel, a company with over 130 years of history and approximately 2,700 employees, in 2020. The company has since invested more than £1.2 billion to sustain operations and drive green transformation. In June 2026, Jingye initiated consultation procedures under the bilateral investment treaty, seeking full compensation for its investment losses.
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