China cranks up backlash over UK’s nationalisation of British Steel

Mon Oct 05 2026 23:18:19 GMT+0000 (Coordinated Universal Time)

China’s commerce ministry accuses Britain of breaching investment treaty after taking the steelmaker into state hands, sparking diplomatic tensions.

China’s commerce ministry declared it firmly opposes the UK’s decision to nationalise British Steel, arguing the move infringes on the rights of China’s Jingye Group and undermines confidence in the bilateral investment treaty. The UK government cites job protection and a “vital national capability” as reasons for the takeover, which initially occurred under a scheme opened by new legislation. The nationalisation keeps the Scunthorpe plant running, but the state now bears a daily cost of over a million pounds and is unlikely to keep the business long term. Tensions surface as the UK’s political landscape shifts towards a new premiership, posing a strategic test of UK‑China economic ties.

China cranks up backlash over UK’s nationalisation of British Steel

China’s commerce ministry has blasted the UK’s decision to bring British Steel into public ownership, saying it firmly opposes and is strongly dissatisfied with the move and that it violates China‑UK investment rules.

On Thursday the British government said that taking the loss‑making stalwart into state hands would secure jobs and preserve a “vital national capability” in the steel sector. The decision follows new legislation that allows the UK to acquire firms that are considered in the public interest.

China’s statement calls the action seriously infringed upon Jingye Group’s legitimate rights and interests and says it has severely undermined the confidence of Chinese firms investing in the United Kingdom. The ministry lobbied Britain to faithfully fulfil its obligations under the bilateral investment treaty signed between the two nations.

Under the new arrangement British Steel will be operated by the UK, but the company continues to lose large sums each day. The National Audit Office last year estimated the Scunthorpe plant cost the state about 1.3 million pounds per day; the Business Secretary said the government would have to cover running costs for the short term.

The nationalisation could strain relations at a time when the UK’s political landscape is about to change, as the current mayor of Manchester is set to rise to the premiership. The new prime minister will need to weigh the UK’s economic ties with the world’s second most populous nation against local job‑savings afforded by keeping the plant operational.