After Saving British Steel, Chinese Firm Loses Control as UK Nationalises It
The British government’s decision to nationalise British Steel, a steel company owned by China’s Jingye Group, has drawn fierce condemnation from Beijing. London’s move is considered not only detrimental to Chinese investors but also presents a major paradox: a country known for decades as a champion of the free market is now taking over a private company in the name of national security.
China’s Ministry of Commerce stated on Friday (17/7) that the Chinese government firmly opposes the decision and expressed deep dissatisfaction with the UK’s action. In its official statement, Beijing assessed that the British government has ignored the contribution of Jingye Group, which had previously saved British Steel from financial ruin.
According to China’s Ministry of Commerce, British Steel had suffered losses for years before being acquired by Jingye Group. After taking over the company, Jingye injected a large amount of investment, kept the plant’s operations running, and preserved thousands of jobs that were previously under threat. However, the British government subsequently took over and nationalised the company on the grounds of protecting strategic interests and national security.
‘The UK side has ignored Jingye’s significant contributions to the British economy and society. The forced takeover in the name of national security has seriously harmed Jingye’s legitimate rights and interests, while also affecting the confidence of Chinese companies investing in the UK,’ said a spokesperson for China’s Ministry of Commerce. Beijing urged the British government to comply with international rules, including fulfilling obligations under the investment protection agreement between China and the UK. The Chinese government also demanded that all Chinese companies investing in the UK be treated fairly and equitably. Furthermore, Beijing stressed it will continue to monitor the case’s development, support Chinese companies in pursuing legal channels to protect their rights, and take necessary measures to safeguard the interests of Chinese investors.