China’s commerce ministry has strongly rejected the UK government’s decision to nationalise British Steel, saying it “firmly opposes and is strongly dissatisfied” with the move.
Britain took control of the Scunthorpe plant last year, citing the need to protect jobs and a vital national capability, while the plant is still owned by China’s Jingye Group, limiting the UK’s ability to steer its future.
The ministry condemned the takeover as a serious infringement on Jingye’s rights and a shock to Chinese businesses investing in the UK. It warned the UK would closely monitor developments and support Chinese firms’ rights, though no specific actions were outlined.
With the incoming UK prime minister set to start his term on Monday, the nationalisation risks further straining UK‑China relations just as economic ties with the world’s second‑largest economy remain crucial.
The UK government maintains that the plant’s continued operation is essential to support local steel manufacturing and supply chain stability, given the country’s reliance on imported steel despite a shift toward electric‑arc furnaces.
Britain’s biggest loss‑making steelworks now costs the government an estimated £1.3 million a day, and the business is reportedly losing around £700,000 per day. The UK may appoint an independent valuer to determine compensation for Jingye, which could be nil.
British Steel was last state‑owned in 1988 before being privatised under Margaret Thatcher. Its assets produce steel types required by Network Rail and the building industry, and the plant keeps the UK insulated from complete reliance on imports.
