China Warns of Action Over UK Nationalisation of Chinese-Owned British Steel
China's Response to UK Nationalisation of British Steel
July 18 (Reuters) - China's Foreign Ministry said on Saturday that it would closely monitor the United Kingdom's nationalisation of Chinese steelmaker-owned British Steel and will take appropriate measures to safeguard legitimate rights and interests if warranted.
Background: UK Nationalises British Steel
Britain nationalised British Steel on Thursday, fully taking over the loss-making company that was previously owned by Chinese private steelmaker Jingye on national security grounds.
Chinese Reaction and Concerns
"The issue has drawn widespread attention in China," the foreign ministry said in a statement.
Impact on Investment Climate and Credibility
"How Britain handles the matter will directly affect Chinese investors' confidence in the UK's investment climate and shape public perceptions in China of the British government's credibility," it said.
Calls for Compensation and Mutually Acceptable Solutions
The ministry also urged Britain to seek a mutually acceptable solution, including arrangements for compensation.
Jingye Steel's Demand for Compensation
Jingye Steel said last week it wants Britain to compensate it for the loss incurred through its investment in British Steel.
(Reporting by Shanghai Newsroom; Editing by Kirsten Donovan)
