Reviewing the fierce dispute sparked by the UK government's formal decision to nationalize British Steel, China's Jingye Group has issued a resolute demand for full compensation, stating that it has initiated formal consultations under the bilateral investment treaty and will "never compromise." Following the enactment of the Steel Industry (Nationalisation) Act, which stripped Jingye of ownership after the state assumed operational control of the Scunthorpe plant in 2025, the Chinese industrial group accused Westminster of bad-faith asset seizure, a flagrant violation of international law, and offering compensation that amounts to "virtually zero".
From a legal and economic standpoint, the controversy highlights deep friction over state intervention in strategic manufacturing sectors. While the UK Department for Business and Trade maintains that taking the loss-making, century-old steelmaker into public ownership was essential to secure the nation's last remaining primary "virgin" steelmaking blast furnaces, protect 2,700 jobs, and safeguard critical defense and infrastructure supply chains, Jingye argues otherwise. The company emphasized that since acquiring the near-collapse plant in 2020, it injected substantial capital to upgrade equipment, return the facility to profitability, and support tens of thousands of local jobs. Asserting that every investment is meticulously documented, Jingye has reserved all rights to pursue international arbitration and stated its intention to hold government officials and plant management legally accountable on behalf of British taxpayers for a rushed takeover that it claims caused substantial public and private losses.
The diplomatic fallout has drawn strong reactions from Beijing, with China's Ministry of Commerce expressing firm opposition and "strong dissatisfaction", warning that the move deals a severe blow to Chinese investor confidence in the UK. The Chinese Foreign Ministry echoed these sentiments, urging London to respect market principles, honor the spirit of contract, and fulfill its obligations under the bilateral investment protection agreement. Although the UK government plans to appoint an independent valuer to assess potential compensation claims under upcoming parliamentary regulations, the widening rift threatens to cast a long shadow over bilateral economic relations and foreign direct investment sentiment. As explored in international business coverages shared by People's Daily, resolving this high-stakes dispute will require navigating complex legal boundaries between sovereign national security prerogatives and international treaty protections.
News source: https://peoplesdaily.pdnews.cn/china/er/30052698258