China’s Jingye Group Seeks Compensation After UK Nationalizes British Steel

BEIJING: China’s Jingye Group has demanded compensation from the British government following the nationalization of British Steel, arguing that the move has caused significant financial losses and undermined investor confidence in the United Kingdom. The company said it is prepared to pursue international arbitration if a settlement cannot be reached.

Jingye, which acquired British Steel in 2020, said it has initiated negotiations under bilateral investment agreements to recover losses stemming from the UK government’s decision to take control of the company. The Chinese steelmaker claimed it invested heavily in British Steel and described the nationalization as damaging both to its interests and to Britain’s reputation as a destination for foreign investment.

The UK government assumed ownership of British Steel after Jingye announced plans to shut down the blast furnaces at the Scunthorpe plant, the country’s last facility capable of producing steel from raw materials. British officials said the intervention was necessary to preserve the nation’s steelmaking capacity, safeguard thousands of jobs, and protect supplies vital to infrastructure and national security.

British authorities have stated that an independent assessment will determine whether Jingye is entitled to compensation and, if so, how much should be paid. Around 2,700 workers are employed at the Scunthorpe steelworks, making the future of the plant a key economic and political issue.

China’s Foreign Ministry has urged the United Kingdom to respect the legitimate rights of Chinese investors and resolve the dispute fairly in accordance with international agreements. Beijing warned that the handling of the case could affect the confidence of Chinese companies considering future investments in the UK.

The dispute marks a further deterioration in UK-China economic relations, with the nationalization of British Steel becoming one of the most significant points of contention between the two countries over investment protections and strategic industries.