CHINA PERSPECTIVE

Beijing, July 20, 2026. China's government is closely watching the situation after the British government nationalized British Steel on July 16 under the Steel Industry (Nationalisation) Act, which has opened up a diplomatic and trade crisis between London and Beijing. Jingye Group, a private Chinese steel company that owned the steelmaker and had kept it afloat after years of losses, demanded compensation for its investment losses on Sunday. In a statement published on WeChat, the company claims that the move "has tarnished the credibility of the British government, scared off international investors, and caused heavy losses" to both its operations and Britain's public finances. Jingye accuses London of "trampling on international investment rules" and says it has initiated a negotiation procedure under bilateral investment agreements, reserving the right to international arbitration. The company also claims it wants to protect the interests of British taxpayers by establishing London's and British Steel's management's responsibility. According to Jingye, the British government had offered only "near-zero" compensation despite continuous investments.

China's Ministry of Commerce announced on Friday that it "firmly opposes and strongly disapproves" of the nationalization, judging that the UK had carried out a forced takeover under the guise of national security, ignoring Jingye's contribution to the British economy. The ministry believes that the decision seriously infringes on the company's legitimate rights and undermines the confidence of Chinese investors in the British market. Beijing urges London to respect the Sino-British investment protection agreement.

On Saturday, the Ministry of Foreign Affairs specified that it is "closely following" the case and is ready to "take necessary measures" to protect Jingye's legitimate rights. A spokesperson emphasized that the case has caught the "attention of the Chinese public" and that Britain's handling of the situation will have a lasting impact on the perception of the investment environment across the Channel. Beijing calls on London to respect market principles and "the spirit of the contract." Prime Minister Keir Starmer justifies the nationalization as necessary to preserve the steel industry and skilled jobs, while London promises an independent assessment of the compensation through secondary legislation.