China has strongly protested against the UK’s nationalisation of British Steel

The Ministry of Commerce of the People’s Republic of China has lodged a strong protest and condemned the UK government’s decision to nationalise the steel company British Steel. Beijing has officially called on the British side to ensure fair and impartial treatment of Chinese enterprises investing and operating in the country. This was reported by Reuters.

On Thursday, the UK fully nationalised the loss-making company British Steel with the aim of preserving domestic steel production. The company had previously been owned by the private Chinese group Jingye Steel. Following the acquisition of the asset, Jingye invested significant capital in British Steel, enabling it to stay afloat and continue operations after many years of financial losses.

The British side forcibly seized the company on the pretext of a threat to ‘national security’, completely disregarding Jingye’s contribution to the British economy and society, according to a statement by a spokesperson for the Chinese Ministry of Commerce. This move seriously infringes upon the legitimate rights and interests of the Chinese investor and significantly undermines the confidence of Chinese businesses in investing in the UK.

The Chinese authorities have stated their intention to closely monitor developments and provide comprehensive support to their companies in defending their legitimate rights. Furthermore, Beijing is calling on London to strictly fulfil its obligations under the bilateral investment protection agreement between China and the UK. Although the Chinese ministry did not specify exactly what support measures might be implemented, representatives of Jingye have already stated their intention to demand full compensation for their investments. The British government, for its part, has stated that any decision on the amount of compensation will be made solely on the basis of an independent assessment.

As reported by GMK Center, the UK government has announced the nationalisation of British Steel. The nationalisation directly concerns the steelworks in Scunthorpe, which employs around 2,700 people and on which thousands of jobs in related sectors depend.