[ad_۱]
Chinese company Jingye is seeking compensation after the UK’s move to fully nationalise loss-making British Steel.
Published On ۱۸ Jul ۲۰۲۶
China’s Ministry of Foreign Affairs has said it will closely monitor the United Kingdom’s nationalisation of British Steel, previously owned by a Chinese steelmaker.
The UK government nationalised British Steel on Thursday, fully taking over the loss-making company, then under the ownership of Jingye, on national security grounds.
Recommended Stories
list of ۳ itemsend of list
“The issue has drawn widespread attention in China,” the Chinese Foreign Ministry said in a statement on Saturday.
“How Britain handles the matter will directly affect Chinese investors’ confidence in the UK’s investment climate and shape public perceptions in China of the British government’s credibility,” it said.
The Chinese ministry also urged Britain to seek a mutually acceptable solution, including arrangements for compensation.
Jingye Steel said last week it wants Britain to compensate it for losses incurred through its investment in British Steel.
British Steel is the only source of primary steelmaking in the UK. It supports approximately ۲,۷۰۰ jobs across its main steelworks in Scunthorpe and thousands more across the wider supply chain.
Jingye – which is among the ۱۰۰ biggest companies in China – bought British Steel for ۷۰ million pounds ($۹۴m) in ۲۰۲۰. By ۲۰۲۵, Jingye said it was losing ۷۰۰,۰۰۰ pounds ($۹۴۲,۰۰۰) every day.
British Steel’s nationalisation has been in the works for more than a year. In March ۲۰۲۵, Jingye carried out a consultation that concluded that the British Steel furnaces were not financially sustainable.
The following month, it emerged that Jingye had cancelled orders for a key material used in the steelmaking process, stoking fears that it was planning to shut down the blast furnaces.
Closing the Scunthorpe plant would make Britain the only G۷ country without the ability to produce virgin steel.
In April, the UK government took operational control of British Steel from Jingye to stop that from happening, although the Chinese company retained ownership.
The UK government said on Thursday that nationalising British Steel was vital to securing jobs and supply chains, safeguarding major infrastructure projects and national security.
