China protests UK nationalisation of British Steel, strains ties
London – The UK government’s move to bring the struggling steelmaker into public ownership has sparked fury across Beijing, with China’s commerce ministry blasting the decision as an infringement on the rights of its investor Jingye Group.
The UK claims the nationalisation protects jobs and preserves a vital national capability, citing the plant’s cost to the state at about one and a half million pounds a day. However, the contract of ownership remains with Jingye, leaving the government unable to steer the firm’s long‑term strategy.
China says the takeover “seriously infringed upon Jingye’s legitimate rights and severely undermined the confidence of Chinese companies investing in the UK,” and will monitor the situation closely, offering to support Chinese firms’ rights – though no specifics are yet known.
The decision comes at a time of heightened scrutiny as an incoming UK prime minister is slated to take office next week, with leaders weighing the economic benefits of maintaining close ties with the world’s second‑largest economy against the new reality of steel production in Scunthorpe.
Jingye has requested compensation for loss‑making operations, while UK officials say a valuation will occur in autumn, potentially resulting in no payout. The Scunthorpe works, which employs roughly 2,700 people, remains vital for the supply of specialised steel products to Network Rail and the building industry, helping the UK avoid overreliance on imported steel.
The nationalisation relaunches an old debate; British Steel was last state‑owned in 1988 before being privatised under Margaret Thatcher. The shift to electric arc furnaces is a long‑term goal, yet the plant produces unique steel hard to replicate elsewhere and keeps the country’s industrial base intact.
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