Jingye Steel is prepared to challenge the nationalisation of British Steel in international arbitration

A Chinese company is calling on the British government to compensate it for its investment losses relating to an asset that was nationalised

The Chinese company Jingye Steel has announced its intention to defend its legal rights, including by seeking international arbitration, following the British government’s decision to nationalise British Steel. In its official statement, the Chinese side described London’s actions as a ‘forced state takeover’ and an ‘illegal expropriation of investment’. This was reported by Bloomberg.

Representatives of Jingye Steel emphasised that in 2020 they had saved the British steelmaker from bankruptcy, after which they had consistently invested in modernising production, upgrading technology, paying taxes and preserving jobs. Despite this, according to the company, the British side ignored their contribution and offered “virtually no compensation”. The investor has now initiated consultations under bilateral investment treaties, demanding that the UK immediately cease its breaches of international rules and fully compensate for the losses.

The decision to transfer the loss-making British Steel into full state ownership was announced on Thursday by the UK Labour government. The authorities took this step to keep the company’s two blast furnaces operational, as the firm was losing over £1 million ($1.35 million) a day.

Jingye Steel also highlighted the inefficiency of public spending. Citing a report by the UK’s National Audit Office, the company noted that by the end of January the government had already spent £377 million ($507 million) on maintaining the plant; by the end of June, this figure was set to exceed £600 million, and by 2028, total budgetary expenditure could exceed £1.5 billion. The Chinese authorities have stated that they are closely monitoring developments and will take measures to protect the interests of their businesses if necessary.

The UK gained operational control of British Steel in April 2025, citing national security concerns. In July 2026, the government fully nationalised the business.

It should be recalled that in May, China warned London against nationalising British Steel. Beijing called on the British government to “make prudent decisions” regarding these plans and to respect “the wishes of companies and market principles, whilst avoiding the abuse of administrative coercive measures”.