China objects to UK nationalisation of British Steel

China said on Friday that it strongly opposed the UK government's decision to take British Steel into full public ownership.

China's Commerce Ministry expressed strong dissatisfaction after the legislation took effect on Wednesday. It accused the British government of forcibly taking over British Steel under the pretext of national security and urged the UK to follow relevant international rules and treat Chinese-invested companies fairly and equally.

Chinese firm Jingye bought British Steel in 2020. It lost control of the company in 2025 after the UK government intervened at the struggling steelmaker. Britain's last factory able to make steel from scratch had faced imminent closure after Jingye said the Scunthorpe plant in northern England was no longer financially viable.

The UK government stepped in and took control of British Steel in April 2025. In May 2026, it said it would introduce legislation to nationalise the company. Jingye demanded compensation from the UK government in June for losses from investments made before London took over operation of the plant.

The nationalisation returns British Steel to government ownership for the first time since 1988. The report said London saw the possible closure of the Scunthorpe site as a threat to Britain's long-term economic security because of the decline of the country's steel industry.