Photo courtesy of Anadolu
China strongly opposed the United Kingdom’s decision to place British Steel under state ownership, warning that the move could weaken investor confidence among Chinese companies.
China’s Commerce Ministry said Friday that it was dissatisfied with the takeover of the steelmaker, which had been owned by China’s Jingye Group.
The ministry said Jingye had provided substantial funding after acquiring the struggling company, helping maintain operations and preserve jobs.
The UK government said the nationalization was intended to protect employment and retain a strategically important industrial capability.
Beijing argued that the action disregarded Jingye’s contributions and harmed the company’s lawful interests under the justification of national security.
China urged British authorities to comply with international rules and honor commitments under the bilateral investment protection agreement between the two countries.
Jingye reportedly sought compensation, while British Business Secretary Peter Kyle said an independent assessor would determine whether payment was warranted based on the company’s value.
China’s Commerce Ministry said it would closely follow the case, support Jingye in pursuing legal remedies and take measures to defend the interests of Chinese enterprises.
