China Foreign Ministry Responds to UK Steel Nationalization: Will Take Rights-Protecting Measures When Necessary
China's Foreign Ministry spokesperson said on the 18th in response to questions about the UK steel nationalization issue that Beijing is closely monitoring developments and will take rights-protecting measures when necessary.
The spokesperson emphasized that this matter has drawn significant attention from the Chinese public. How the UK handles this issue will directly affect Chinese investors' perception of the investment environment in the UK and influence Chinese citizens' views on the credibility of the British government. China and the UK have signed an Investment Protection Agreement, under which the legitimate and lawful rights and interests of investors must be fully protected in accordance with law. China urges the UK side to genuinely respect market principles and contractual spirit, and find a solution acceptable to both parties, including how to provide compensation. China supports enterprises in using legal means to protect their rights and is closely monitoring the situation, and will take rights-protecting measures when necessary.
It is reported that in 2020, Jingtai Group acquired the then-bankrupt British Steel Company for approximately £50 million to £70 million. Since then, it has continuously invested in British Steel for equipment upgrades, production operations, employee salaries, and green transition projects, with cumulative investments exceeding £1.2 billion.
Facing ongoing losses and environmental requirements, Jingtai proposed a transformation plan: closing outdated blast furnaces and building electric arc furnaces, while seeking substantial government subsidies from the UK. This meant shutting down the two core blast furnaces at the Skelton plant—the most critical assets upon acquisition. The UK side opposed this move, as these two furnaces were the last remaining facilities in the UK capable of producing primary steel directly from iron ore. Once closed, the UK would become the only G7 country without primary steel production capacity.
In April 2025, the UK Parliament urgently passed the *Steel Industry (Special Measures) Act*, directly taking over the company’s operational decision-making authority. In May 2026, it formally introduced the *Steel Industry (Nationalization) Act*, preparing to nationalize British Steel through legislation.
Jingtai Group had previously requested compensation of at least £1 billion to settle debts and recover its investment if ownership were transferred—yet the UK government offered only around £100 million.
On July 16, the UK government announced that, under the *Steel Industry (Nationalization) Act*, British Steel had been nationalized and would establish a compensation mechanism via secondary legislation, with independent assessment of compensation matters.
The spokesperson for China’s Ministry of Commerce responded by stating that Beijing firmly opposes and strongly objects to the UK government’s relevant decision. British Steel had already suffered years of losses prior to Jingtai’s acquisition. After the acquisition, Jingtai injected massive funds, enabling the company’s continued operation and preserving jobs. Ignoring Jingtai’s significant contributions to the UK’s economy and society, the UK authorities invoked national security concerns to forcibly take over and proceed with nationalization, severely damaging Jingtai’s legitimate rights and interests and significantly undermining confidence among Chinese enterprises investing in the UK.
The spokesperson stated that China urges the UK government to abide by relevant international rules, fulfill its obligations under the China-UK Investment Protection Agreement, treat Chinese enterprises operating in the UK fairly and impartially, and fully safeguard their legitimate and lawful rights and interests. China will closely monitor developments, support Chinese enterprises in protecting their rights through legal means, and take resolute measures to firmly defend the interests of Chinese enterprises.
Original article: toutiao.com/article/1871099930663115/
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