CHINA WARNS UK OVER BRITISH STEEL SEIZURE AND JINGYE IS DEMANDING COMPENSATION
The UK government has fully nationalised British Steel, stripping Chinese owner Jingye Group of its ownership. Britain took control in April 2025 and completed the takeover on July 16.
Jingye is not backing down. The company says it will seek full compensation for all losses and will never compromise. It has started consultation under the China-UK Bilateral Investment Treaty and is ready for international arbitration.
China’s Foreign Ministry said how Britain handles this will affect whether Chinese investors trust the UK. Beijing said it will take necessary measures to protect Chinese companies’ rights.
Jingye bought British Steel in 2020 and says it returned the company to profitability within a year. It claims Britain disregarded its contributions and offered almost zero compensation.
What was the UK’s justification? National security. British Steel supplies rail, construction, and defence. The UK says it could not afford to lose its last virgin steel producer.
Now Jingye is threatening to hold British government officials legally liable for rushing the takeover. The UK says compensation will be determined by an independent valuer.
This is a test for new Prime Minister Andy Burnham. The question is whether the UK is open for business or just open for seizing assets.