BEIJING (AP) — The Chinese company that once held ownership of British Steel is calling on the United Kingdom to pay compensation for investment losses following the government’s nationalization of the steel manufacturer last week.
The British government assumed operational control of the company after Jingye Group indicated it was considering shutting down the blast furnaces at its Scunthorpe facility in northern England — the last remaining site in the United Kingdom capable of producing “virgin steel” directly from raw materials.
In a statement posted on WeChat, Jingye Group argued that the nationalization damaged the UK government’s credibility, rattled international investors, and resulted in major losses for both the company and British taxpayers. The firm also called on the UK government to stop what it described as “trampling on international investment rules.”
Jingye announced it has launched formal negotiation procedures under applicable bilateral investment agreements, while reserving all its rights — including the option to pursue international arbitration. The company also said it intends to represent British taxpayers in seeking legal accountability from the UK government and British Steel’s leadership, though it did not elaborate on exactly how it plans to pursue that course of action.
“The U.K. disregarded Jingye’s continuous investment and significant contribution and was only willing to provide almost zero compensation,” the company stated.
For its part, the UK government said last week that an independent review will be conducted to assess whether Jingye Group is owed any compensation at all.
The Department for Business and Trade announced the nationalization on July 17, stating that the move would protect thousands of jobs and serve the UK’s national interest by securing a domestic supply of steel for major construction and defense projects.
Steel has been produced at the Scunthorpe site for more than 130 years, with roots tracing back to advances in steelmaking technology developed during the Industrial Revolution. The plant currently employs around 2,700 workers.
Jingye purchased British Steel in 2020, claiming at the time that it rescued the company from a financial crisis.
China’s Foreign Ministry weighed in on Saturday, warning that how the UK chooses to resolve the matter will directly shape how Chinese investors perceive the British investment climate and the reliability of the UK government.
“China urges the UK to earnestly respect market principles and the spirit of contract, and find solutions on compensation and other issues acceptable to both sides,” the ministry said in an official statement.
The ministry added that China supports its companies in defending their legitimate interests through legal channels.
