China Criticizes UK's Nationalization of British Steel

The Chinese government has expressed strong dissatisfaction with the UK’s decision to nationalise British Steel, a move that was announced on Thursday to protect the future of steel production in the country. The UK government intervened to prevent the closure of the steelworks in Scunthorpe and the loss of 4,000 jobs 15 months ago, and has now brought British Steel under public ownership.

The Department for Business and Trade stated that the move was essential to maintain steel production at the company’s site in Scunthorpe, Lincolnshire, and to protect the company’s future and UK supply chains. However, China’s Ministry of Commerce (Mofcom) has responded by saying that the move deals a severe blow to Chinese companies’ confidence in investing in the UK.

British Steel was previously owned by the Chinese company Jingye, which had threatened to walk away without taking steps to preserve the blast furnaces in Lincolnshire. The Labour government stepped in with an emergency recall of parliament to prevent the closure of British Steel in April last year. A Mofcom spokesperson has stated that the UK government’s decision seriously undermines Jingye’s legitimate rights and interests, and that China will closely follow developments and take strong measures to protect the interests of Chinese companies.

The UK government plans to appoint an independent valuer to work out what compensation should be paid to Jingye, in an effort to forestall legal action under international treaties. The Mofcom spokesperson has also called on the UK government to abide by relevant international rules and treat Chinese companies operating in the UK in a fair and impartial manner.

The nationalisation of British Steel is the latest geopolitical flashpoint between the UK and China, following a series of tensions in recent years. The UK government has stated that the decision secures the future of steelmaking in the UK, protects skilled jobs, and safeguards a vital national capability.

The announcement follows the Steel Industry (Nationalisation) Act 2026 receiving royal assent and becoming law, which allows ministers to transfer steel businesses’ shares or property into public ownership. A new leadership team has been appointed to focus on stabilising the business and turning it into a commercially sustainable, low-carbon enterprise.