China ‘strongly dissatisfied’ with UK government nationalising British Steel
The Chinese government has expressed “strong dissatisfaction” with Britain’s decision to nationalize British Steel.
British Steel was taken into public ownership on Thursday; It was a move the Department of Trade and Trade deemed necessary to safeguard the “future of steelmaking” at the Scunthorpe, Lincolnshire site, securing its future and UK supply chains.
But China’s Ministry of Commerce (Mofcom) countered, saying the action “deals a serious blow to the confidence of Chinese companies to invest in the UK”.
British Steel was previously owned by Chinese company Jingye.
The intervention follows previous plans to close the Scunthorpe plant’s blast furnaces. Parliament was called to meet on Saturday last April to pass a special law to keep the facility open.
A Mofcom spokesperson told Chinese media: Global Times: “Ignoring Jingye Group’s significant contributions to the British economy and society, the UK side forcibly seized control of British Steel and then nationalized the company in the name of national security, seriously undermining Jingye’s legitimate rights and interests and dealing a serious blow to the confidence of Chinese companies to invest in the UK.
“China is firmly opposed to and strongly unhappy with the UK government’s decision.
“China will follow the developments closely, support Chinese companies to protect their rights through legal means, and take strong measures to strictly protect the interests of Chinese companies.”
The spokesman reportedly said that the UK Government must “comply with relevant international rules, solemnly fulfill its obligations under the China-UK bilateral investment agreement, treat Chinese companies operating in the UK fairly and impartially, and fully protect their legitimate rights and interests.”
The UK Government said a new leadership team had been appointed to focus on stabilizing the business following Thursday’s nationalization and transforming it into a “commercially sustainable, low-carbon organisation”.
Prime Minister Sir Keir Starmer said on Thursday: “British Steel is part of the fabric of our nation and the cornerstone of Britain’s industrial strength.
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and secures a vital national talent.”
He continued: “This Government will always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on thrive long into the future.”
The announcement comes after the Steel Industry (Nationalization) Bill 2026 received royal assent and became law. The new law allows ministers to transfer shares or property of steel businesses into public ownership.
