China’s Ministry of Commerce issued a statement on Friday denouncing the UK’s decision to nationalize British Steel, stating that it “firmly opposes and is strongly dissatisfied with the British government’s decision” and cautioning that the action had undermined Chinese companies’ confidence in investing in the UK. The British government declared on Thursday that it will take control of the losing business in order to preserve jobs and a “vital national capability.”
After Jingye contemplated shutting down the plant’s blast furnaces, the UK government assumed operational control of British Steel’s Scunthorpe operations in 2025. However, the government’s power to decide the company’s future was limited because the Chinese group continued to own it. British Steel has been losing money for years prior to its purchase by Jingye, according to a statement released by China’s Ministry of Commerce on Friday. Jingye made a significant investment in the business after the acquisition, which allowed it to continue operating and maintain employment.
The ministry charged that the UK was using national security as an excuse to seize control of and nationalize the business while ignoring Jingye’s contribution to the British economy and society. It further stated: “The Chinese side urges the UK government to abide by relevant international rules, earnestly fulfil its obligations under the China-UK investment protection agreement, treat Chinese-funded enterprises in the UK fairly and impartially, and fully safeguard their legitimate rights and interests.”
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