China warns UK over British Steel nationalisation, demands fair resolution

China’s Ministry of Foreign Affairs on Saturday issued a warning to the United Kingdom following the nationalisation of British Steel, which had been owned by Chinese company Jingye. The ministry stated that the issue has drawn widespread attention in China and that how Britain handles the matter will directly affect Chinese investors’ confidence in the UK’s investment climate and shape public perceptions of the British government’s credibility.

The UK government fully nationalised loss-making British Steel on Thursday, citing national security grounds. Jingye, one of China’s top 100 companies, purchased British Steel for £70 million ($94 million) in 2020. By 2025, Jingye reported daily losses of £700,000 ($942,000).

China urged Britain to seek a mutually acceptable solution, including arrangements for compensation. Jingye had previously stated its desire for compensation for losses incurred through its investment in British Steel.

British Steel is the only primary steelmaker in the UK, supporting approximately 2,700 jobs at its main works in Scunthorpe and thousands more across the supply chain. The nationalisation process has been underway for over a year. In March 2025, Jingye concluded that the furnaces were not financially sustainable, and the following month it cancelled orders for key raw materials, sparking fears of a shutdown. To prevent this, the UK government took operational control of British Steel in April 2025, though Jingye retained ownership. The government stated that nationalisation was vital to secure jobs, supply chains, major infrastructure projects, and national security.