China's Ministry of Commerce has voiced strong dissatisfaction with the United Kingdom's decision to nationalize British Steel, stating the move has dealt a severe blow to Chinese companies' confidence in investing in the UK. The ministry criticized the UK government for forcibly taking control of the company, formerly owned by China's Jingye Group, in the name of national security.
A spokesperson for China's Ministry of Commerce told the Global Times that the UK government disregarded Jingye Group's contributions to the British economy and society. The spokesperson asserted that China firmly opposes the decision and will support Chinese companies in safeguarding their rights through legal means, vowing to take strong measures to protect their interests. Beijing also urged the UK to abide by international rules and the China-UK bilateral investment treaty, treating Chinese companies operating in the UK fairly.
The UK Department for Business and Trade announced the renationalization to protect the future of steel production at British Steel's Scunthorpe site, a move intended to safeguard supply chains, support industries reliant on UK-made steel, and bolster national security. Ministers stated that a new leadership team would be appointed to stabilize the business and focus on developing a commercially sustainable, low-carbon future. An independent assessor will determine if Jingye should receive compensation.
Prime Minister Sir Keir Starmer emphasized that British Steel is a cornerstone of Britain's industrial strength and that the government's decision secures the future of UK steelmaking, protects jobs, and safeguards a vital national capability. The nationalization follows the Steel Industry (Nationalisation) Act 2026, which allows ministers to transfer steel businesses' shares or property into public ownership. This action brings the country's last two blast furnaces at Scunthorpe under state ownership for the first time since 1988.
However, some within the UK's Conservative party have raised concerns about potential taxpayer expenses, with Tory business spokesman Andrew Griffith questioning the use of public funds for decommissioning liabilities at Scunthorpe. He urged ministers to develop a plan to prevent the deindustrialization of Britain rather than adopting what he described as "1970s nationalisation vibes."
Business Secretary Peter Kyle stated that British Steel now belongs to the British people, with the focus on stabilizing the business, supporting communities, and building a sustainable, competitive, and decarbonized steel sector. He argued that allowing the Scunthorpe plant to close would have made Britain dependent on global markets. Kyle added that long-term decisions regarding the replacement of aging blast furnaces would be made by the company and the government moving forward.
Jingye Group had previously planned to close the Scunthorpe blast furnaces, but Parliament was recalled in April of the previous year to approve legislation to keep the plant operational. Officials have pledged to aim for 50 percent of steel used in the UK to be made domestically.