UK Government Nationalizes British Steel, China Expresses Strong Opposition
The UK government announced it has nationalized British Steel, a company owned by China's Jingye Group. China's Ministry of Commerce responded today, stating strong opposition and deep dissatisfaction with the decision.
The British government has announced the nationalization of steel producer British Steel, owned by Chinese conglomerate Jingye Group. The move was met with a strong rebuke from China's Ministry of Commerce, which expressed "resolute opposition and strong dissatisfaction" with the UK government's decision.
According to the Chinese ministry, British Steel had been operating at a loss for years prior to its acquisition by Jingye Group. The Chinese company subsequently injected significant capital into the firm, helping to sustain its operations and preserve jobs. China argues that the UK government's takeover, citing national security, disregards Jingye Group's contributions and "seriously infringes upon the legitimate rights and interests" of the Chinese company. It also warned the decision could dampen Chinese investment confidence in the UK.
Beijing urged the UK government to adhere to international rules and honor its obligations under the China-UK bilateral investment treaty, ensuring fair treatment and protection of Chinese firms' legal rights. China stated it would closely monitor the situation and support Chinese enterprises in defending their rights through legal means, reserving the right to take countermeasures.
British Steel, a major UK steel manufacturer, has a history of financial struggles and ownership changes. It was previously part of Corus Group, acquired by Tata Steel, then sold to Greybull Capital in 2016 for a nominal sum. Jingye Group acquired the company in 2020, pledging substantial investment for modernization.