Jingye Steel Seeks Compensation from UK After British Steel Nationalisation
Jingye Steel's Response to British Steel Nationalisation
Background of the Nationalisation
June 11 (Reuters) - China's Jingye Steel said on Thursday it wants Britain to compensate it for the loss incurred through its investment in British Steel, after the UK government took control of the group from its Chinese owner.
Seizure of Operational Control
• Britain seized operational control of British Steel from Jingye Steel in April 2025 on what it said were national security grounds and, under plans announced by Prime Minister Keir Starmer last month, could fully nationalise it.
Jingye Steel's Actions and Statements
Consultation Procedures Initiated
• "Jingye has recently initiated consultation procedures under the bilateral investment treaty with the UK government," the company said in a statement on its WeChat account.
Protection of Investor Rights
• Jingye hopes the UK government could fully safeguard the legitimate rights and interests of Jingye and other Chinese companies as well as global investors, according to the statement.
China's Official Response
Beijing's Position on Nationalisation
• Beijing urged the British government to "make decisions prudently" over plans to nationalise British Steel, calling on it to "respect the wishes of firms and market principles, and avoid the abuse of administrative coercive measures."
Jingye's Investment in British Steel
Acquisition and Capital Investments
• Jingye had completed its buyout of British Steel in 2020, and since then has invested a large amount of capital to upgrade and renovate old equipment.
Reporting Credits
(Reporting by Amy Lv and Farah Master; Editing by Christopher Cushing and David Holmes)
