China’s Ministry of Commerce has issued an official statement calling on the British government to “act prudently” regarding its plans for the full nationalisation of British Steel, which is owned by the Chinese group Jingye. Beijing warned that it would “take resolute measures” to protect the interests of Chinese enterprises.
The Chinese ministry’s statement stressed the need to respect “the wishes of companies and market principles” and to avoid “abusing administrative coercive measures”. The Chinese side urged London to uphold the principles of fairness, impartiality, and non-discrimination towards foreign investors.
“Any actions taken by the British side must give full consideration to the significant investment made by the Chinese company in the British steel industry, as well as its contribution to the UK economy and society,” the Ministry of Commerce stated.
By way of background, in April 2025 the British government assumed operational control of British Steel to prevent the possible closure of the blast furnaces at the Scunthorpe plant. This week, Prime Minister Keir Starmer announced the launch of a full nationalisation process after negotiations with the Chinese owner over a commercial sale failed to produce an agreement.
British Steel is one of the UK’s key steel producers. China’s Jingye Group acquired the company in 2020. In recent years the business has faced serious financial difficulties due to high energy costs and competition from imported goods.
Beijing stated that it would closely monitor developments and stands ready to take “strong measures” to protect the lawful rights and interests of Chinese companies. The statement is likely to add further tension to the economic relationship between the United Kingdom and China.