UK media: China's Jingshe Group has officially initiated proceedings under the China-UK Bilateral Investment Treaty to claim compensation from the UK government over the nationalization of British Steel, seeking damages exceeding £1 billion.
Prime Minister Starmer took control of the Scunthorpe steel plant in April 2025 on grounds of national security, fearing that its closure would result in the loss of 2,700 jobs, and that once the blast furnaces were shut down, they could never be restarted.
After Jingshe Group acquired British Steel in 2020, it faced difficulties due to global overcapacity in steel production, originally planning to close the facility. The UK government is now planning to significantly reduce the tariff-free import quota for steel, which may make British Steel a more attractive asset. The government intends to temporarily nationalize the company before seeking new private buyers; however, potential new owners might demand substantial subsidies to invest in electric arc furnaces for decarbonization. This dispute could strain Sino-UK relations, and if negotiations fail within six months, the case can be submitted to international arbitration.
Original source: toutiao.com/article/1867757261427724/
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