China has strongly condemned the United Kingdom's decision to nationalize British Steel, with its commerce ministry stating it "firmly opposes and is strongly dissatisfied with the British government's decision." The UK government took control of the loss-making firm's operations last Thursday, asserting the move was necessary to protect jobs and safeguard a "vital national capability." The company had previously been owned by China's Jingye Group, and the nationalization limits the government's ability to direct its future.
Beijing argues that the UK's actions "seriously infringed upon Jingye's legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK." The Chinese commerce ministry called on Britain to "faithfully fulfil" its obligations under the China–UK Bilateral Investment Treaty. The statement further alleged that the British side "forcibly took control of the company in the name of national security," disregarding Jingye's contributions to the UK economy and society.
China has indicated it will monitor the situation closely and support Chinese firms in protecting their rights, though it has not specified what actions this support might entail. The nationalization of British Steel comes as the UK prepares for a new prime minister, who will need to navigate the implications of this decision for the broader economic relationship between the UK and China, the world's second-largest economy.