China’s Ministry of Commerce expressed its “strong opposition and dissatisfaction” on Friday regarding the UK government’s decision to nationalize British Steel, a subsidiary of the Chinese group Jingye. Beijing accused the British authorities of abusing the concept of national security.
A spokesperson for the ministry stated that the UK ignored the contributions made by the Chinese investor to the company and “forced the takeover” of the plant. The official assessed that this action “seriously violates the legitimate rights” of Jingye and “undermines the confidence of Chinese enterprises in investing” in the British market.
The UK government announced on Thursday the completion of the takeover of British Steel. Prime Minister Keir Starmer remarked that the move “secures the future of production” and maintains strategic capabilities, while Business Minister Peter Kyle emphasized that saving the steelworks from collapse directly serves the British “national interest”.
China Urges UK to Adhere to Investment Protection Agreement
The Chinese Ministry of Commerce declared that it would support Jingye in pursuing legal measures to defend its interests. It also urged London to adhere to the bilateral investment protection agreement and to ensure “fair treatment” of Chinese enterprises.
British Steel, which employs nearly 2,700 people, has been facing significant challenges for an extended period. The plant struggled with intense competition and exorbitant costs. Jingye had previously warned of potential furnace shutdowns and is now seeking compensation.
