China has lodged a formal protest after the UK government nationalised British Steel, seizing ownership from Chinese parent company Jingye Group on 16 July 2026. The Chinese commerce ministry said the move violates bilateral investment protections and warned it would damage confidence among Chinese investors, urging London to honour the UK-China investment treaty.
Jingye, which acquired the steelmaker in 2020 with a £1.2 billion investment pledge, lost operational control in April 2025 after reporting daily losses of £700,000. The company is demanding full compensation, with the government set to appoint an independent valuer.
Business Secretary Peter Kyle said the state would cover operating costs for the roughly 2,700 employees at the Scunthorpe plant and across the supply chain. Beijing pledged to take measures to protect Chinese enterprises as the dispute escalates.