China slams UK over British Steel nationalisation
China has strongly criticised the UK government's decision to nationalise British Steel, saying it violates the rights of Chinese owner Jingye Group and undermines investor confidence.
China's Ministry of Commerce on Friday expressed strong dissatisfaction with Britain's nationalisation of British Steel, a company owned by China's Jingye Group. The ministry stated that the UK's action "seriously infringed upon Jingye's legitimate rights and interests" and "severely undermined the confidence of Chinese companies investing in the UK."
The UK government took control of British Steel's operations in Scunthorpe last year, though the company remained owned by Jingye. Officials said the move was necessary to protect jobs and safeguard a "vital national capability." However, China's ministry argued that Britain "disregarded Jingye's significant contribution" and forcibly took control under the pretext of national security.
Beijing called on London to "faithfully fulfil" its obligations under the China–UK Bilateral Investment Treaty. The ministry added that China would closely monitor developments and support Chinese firms in protecting their rights, without specifying what that support might entail.
The nationalisation threatens to strain UK-China relations just as Andy Burnham is set to become prime minister on Monday. The incoming PM will need to balance the dispute with the economic benefits of ties with the world's second-largest economy.
