China disapproves of British Steel nationalisation decision by UK
China's Response to British Steel Nationalisation
Official Statement from China
BEIJING, July 17 (Reuters) - China said on Friday it firmly opposes and strongly disapproves of Britain's decision to nationalise British Steel and urged fair treatment for Chinese firms there.
Background on the Nationalisation
Britain nationalised British Steel on Thursday, fully taking over the loss-making company that was previously owned by Chinese steelmaker Jingye, in an effort to protect the future of steel production in the country.
China's Criticism of the Takeover
The British side had "forcibly" taken over the company and "disregarded" Jingye's contributions to the British economy and society, China's commerce ministry said in statement.
Impact on Chinese Companies
The ministry said Britain's move "seriously damaged" Jingye's legitimate rights and interests, and "severely undermined" Chinese companies' confidence in investing in Britain.
China's Next Steps and Expectations
It said it would closely monitor developments and support Chinese firms in protecting their rights, urging Britain to fulfil obligations under the China-UK Investment Protection Agreement.
Uncertainty Over Future Actions
The statement did not say what protecting Chinese companies' rights might entail.
(Reporting by Liz Lee and Shanghai newsroom; Editing by Muralikumar Anantharaman and Sonali Paul)