Published on 17/07/2026 - 7:37 GMT+2

China denounced the UK's move to nationalise British Steel, declaring it "firmly opposes and is strongly dissatisfied with the British government's decision" while cautioning that the step has eroded trust among Chinese firms considering UK investments, the Ministry of Commerce stated on Friday.

On Thursday the British government confirmed it would place the loss-making firm into public ownership to protect employment and maintain a "vital national capability".

The UK government assumed day-to-day control of British Steel's Scunthorpe site in 2025 once Jingye explored shutting the blast furnaces, yet the Chinese owner kept formal title, restricting official influence over long-term plans.

In a Friday statement China's Ministry of Commerce noted: "British Steel had been incurring losses for years before its acquisition by Jingye. Following the acquisition, Jingye injected substantial capital into the company, thereby sustaining its operations and preserving jobs."

The ministry charged that Britain ignored Jingye's economic and social contributions and invoked national security to seize and nationalise the business.

It added: "The Chinese side urges the UK government to abide by relevant international rules, earnestly fulfil its obligations under the China-UK investment protection agreement, treat Chinese-funded enterprises in the UK fairly and impartially, and fully safeguard their legitimate rights and interests."

The ministry pledged to track events, assist companies pursuing legal remedies, and "take resolute measures to firmly safeguard the interests of Chinese enterprises".

The UK Department for Business and Trade said on Thursday the acquisition would preserve thousands of jobs and defend national interests by retaining domestic steel output for major construction and defence needs.

"British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead," Business Secretary Peter Kyle said.

An independent review will assess whether Jingye receives any compensation.

The Scunthorpe furnaces remain the only UK facilities able to produce virgin steel from raw materials.

British Steel and earlier operators have produced steel at Scunthorpe for more than 130 years, extending the nation's Industrial Revolution advances in steel technology. The site currently employs roughly 2,700 staff.

Jingye acquired British Steel in 2020 and reports investing more than £1.2bn to maintain output amid persistent operational challenges.