China warned London against nationalizing British Steel

China has called on the British government to “make decisions prudently” regarding plans to nationalize British Steel and to respect “the wishes of companies and market principles, while avoiding the abuse of administrative coercive measures,” according to Reuters.

The UK seized operational control of British Steel from its Chinese owners—Jingye—back in April 2025. According to plans announced by Prime Minister Keir Starmer, the government may fully nationalize the company.

China’s Ministry of Commerce stated that it would closely monitor developments and “take decisive measures to protect the legitimate rights of Chinese companies.” For his part, a British government spokesperson assured that the government is committed to respecting business rights.

“We will use the powers provided by the bill only where the public interest test is met,” he clarified.

On Thursday, May 14, the bill to nationalize British Steel passed its first reading in Parliament. The law will grant the government the authority to transfer steel companies to state ownership provided that the public interest is upheld. The second reading, during which MPs will have their first opportunity to discuss the bill, is scheduled for May 21.

The government emphasizes that protecting the country’s steelmaking capacity is a matter of national interest, and the legislation is based on the recently adopted Steel Production Strategy. The strategy outlines a long-term plan to revive the industry, restore domestic production to a sustainable level, and ensure the role of steel in critical sectors—national infrastructure, defense, and clean energy.

“The revival of our steel sector is a top priority for the country, and this is an important first step toward protecting our steel production capacity,” said Industry Minister Chris McDonald.

He also noted that introducing the bill to Parliament as one of the first among all those announced in the King’s Speech demonstrates the seriousness of the government’s intentions. The initiative has been widely supported by industry associations and trade unions.

When the government first took control of British Steel, the corresponding bill on special measures in the steel industry was passed in a single day during a rare Saturday session of Parliament.

As reported by GMK Center, the full nationalization of British Steel will cost taxpayers billions of pounds and will be “extremely expensive” for the UK government.  Since taking control of the Scunthorpe facility 11 months ago, taxpayers have already spent £419 million to support the company. At the current rate, spending on British Steel could exceed £1.5 billion by 2028.