China condemns UK nationalisation of British Steel, warning of hit to Chinese investment

China's commerce ministry on Friday condemned the British government's decision to nationalise British Steel, saying it "firmly opposes and is strongly dissatisfied with the British government's decision" and warning that the move "seriously infringed upon Jingye's legitimate rights and interests." Beijing added that the takeover "severely undermined the confidence of Chinese companies investing in the UK" (https://www.bbc.co.uk/news/articles/cjd4kvxpd3do).

The UK government on Thursday took the loss-making steelmaker into public ownership under emergency legislation passed by Parliament on Wednesday, arguing the step would protect jobs and safeguard a "vital national capability." The Associated Press reported the move as the nationalisation of the Chinese-owned producer to protect the country's steelmaking capacity (https://news.google.com/rss/articles/CBMiqwFBVV95cUxQZzZsZGNTR1Q0cV9pcUxFWmJpSDRyUUNwempEaDVUU01nWDE4cUx6bnhPU0hVVGNaNjdFWHRNWWJVWnhqVUFLb1p2N043ZGRJYm5pNW9BbE9YWlpPSDliYWtsdERfR280RVUwYUZyZ25oWDVUTFJya1pUbm5OSWs3NDBtM0JobXRaaW9WX1E5dFBSUGtud0VrM2xwcFdwVGtreXJSd09SLU9KWWs?oc=5).

British Steel has been controlled by China's Jingye Group since 2020. Although the UK took operational control of the Scunthorpe plant last year, Jingye remained the legal owner, limiting ministers' ability to steer its future. Jingye is seeking compensation, having previously said the business was losing about £700,000 a day (https://www.bbc.co.uk/news/articles/cjd4kvxpd3do).

Beijing called on Britain to "faithfully fulfil" its obligations under the 1986 China–UK Bilateral Investment Treaty and said it would monitor developments closely and support Chinese firms to protect their rights, without specifying what form that support might take. The treaty, signed four decades ago, is designed to promote and protect investments between the two countries (https://www.bbc.co.uk/news/articles/cjd4kvxpd3do).

The nationalisation threatens to strain London–Beijing relations just as Andy Burnham is set to become prime minister on Monday, forcing the incoming government to weigh industrial-policy concerns against the economic benefits of ties with the world's second-largest economy. The Scunthorpe works employs about 2,700 people directly and supports thousands more in the supply chain; without it, the UK would be the only G7 member unable to make virgin steel (https://www.bbc.co.uk/news/articles/cjd4kvxpd3do).

_Source Reporters corrects factual errors as soon as they are confirmed._