China hits out at British Steel nationalisation
BBC News 2026-07-17 02:50:36
Context: The UK government has nationalized British Steel, a loss-making firm, to protect jobs and safeguard a "vital national capability." The move has sparked criticism from China, which "firmly opposes and is strongly dissatisfied" with the decision, citing infringement of the legitimate rights and interests of Jingye Group, the Chinese owner of British Steel. The nationalization comes as the UK's steel industry faces significant challenges, with British Steel's Scunthorpe plant costing the government approximately £1.3 million per day.
Key Facts
- The UK government nationalized British Steel to protect jobs and safeguard a "vital national capability," with Business Secretary Peter Kyle stating that the government would need to cover the running costs "for the immediate future."
- China's commerce ministry expressed strong dissatisfaction with the UK's decision, stating that it "seriously infringed upon Jingye's legitimate rights and interests and severely undermined the confidence of Chinese companies investing in the UK."
- British Steel's operations in Scunthorpe were costing the government approximately £1.3 million per day, according to the National Audit Office in March.
- Jingye Group, the Chinese owner of British Steel, is seeking compensation for the nationalization, having previously stated that the business was losing £700,000 per day.
- The nationalization of British Steel threatens to strain the relationship between London and Beijing, particularly as Andy Burnham is set to become the new Prime Minister, who will need to weigh his approach to the issue with the economic benefits of ties with China.