On Sunday, Jingye Group requested that the UK government fully reimburse them for any losses related to their investment in British Steel. This followed their announcement of consultations under the relevant bilateral investment treaty, in which they stated they would preserve all legal rights and refuse to compromise. The UK government nationalized British Steel on Thursday, taking ownership from Jingye Group, which had acquired the company in 2020. This action was detailed in a statement on Jingye's official WeChat account.
Jingye will firmly protect its interests, reserving all legal rights and taking decisive action, as it accuses the British government of ignoring its substantial investments and contributions to the UK steel industry while offering negligible compensation. When Jingye took over British Steel in 2020, the steelmaker, which had been established for over a century, was teetering on the edge of failure. Within just a year after the acquisition, thanks to extensive internal restructuring and enhancements in operations, Jingye had successfully guided the company back to profitability, the statement revealed.
Jingye's Investment Revitalizes British Steel Industry
Over the next five years, Jingye invested heavily. It modernized outdated machinery, introduced advanced technologies, and consistently met tax obligations. This investment not only maintained but also generated tens of thousands of jobs, fostering growth in local communities and adjacent sectors. Through these efforts, Jingye affirmed its significant role in both the survival and progress of British Steel, as well as in rejuvenating the UK's steel industry.
The statement criticized the British government, highlighting its shift from initial pledges of joint investment to failing to provide the promised support since Jingye took over British Steel. Additionally, the government escalated from forcefully seizing control to placing British Steel under full state ownership, gradually reducing its commitments.
Jingye's Investment Clash with UK Government
"The British side has largely ignored Jingye's continuous investment and significant contributions, compensating them with almost nothing," the statement indicated. Furthermore, the company warned that the UK government would face consequences for its deceitful appropriation of Jingye's assets and its disregard for legal norms.
Referencing a report from the UK's National Audit Office, the statement revealed that the British government had incurred expenses of 377 million pounds ($501 million) on British Steel as of the end of January 2026. By the end of June, this expenditure was anticipated to rise above 600 million pounds, with projections suggesting it could reach beyond 1.5 billion pounds by 2028.
UK's Expensive Seizure of British Steel Sparks Worldwide Concern
Citing a report by the UK's National Audit Office, the statement revealed that the British government had disbursed 377 million pounds ($501 million) on British Steel's operations as of the end of January 2026. The figure was anticipated to exceed 600 million pounds by the end of June and might surpass 1.5 billion pounds by 2028. Jingye urgently requested that the UK government immediately cease the application of native laws that breach international investment standards and guarantee swift, equitable, and efficient reimbursement for all accrued losses. This insistence arises as Jingye meticulously records every investment, pledging to recover all owed sums. Moreover, Jingye has initiated discussions in accordance with the pertinent bilateral investment treaty while maintaining all legal entitlements, including the option of international arbitration if necessary. The company stressed its commitment to not making concessions. In response to the hurried acquisition that lacked adequate preparation and a robust operational strategy, resulting in considerable monetary harm to both British taxpayers and Jingye, the company declared it would pursue actions against the implicated government officials and British Steel executives. The UK government's act constituted an audacious seizure and an egregious infringement of the international rule of law, the company said. "What the UK government has done to Jingye is ruining its own credibility, cooling the confidence of investors worldwide, and weakening the very foundation of its standing as a country governed by the rule of law," the statement said.
Jian Junbo, director of the Center for China-Europe Relations Studies at Fudan University, told the Global Times that the UK's actions reflect a restrictive approach that undermines the principles of fair competition and creates uncertainty for foreign investors. "Such uncertainty might not only affect Chinese companies but also weaken the UK's efforts to attract global investment and maintain its reputation as an open market," he added.
Jingye Challenges UK Over Investment Dispute
Jingye has requested that the UK government immediately stop using domestic law to override international investment rules and provide swift, adequate, and effective compensation for all losses. Every investment made by Jingye is fully documented, and the company will seek to recover every amount, the statement said. Jingye has initiated consultations under the relevant bilateral investment treaty and retains all legal rights, including the right to pursue international arbitration, it added, emphasizing that the company will never concede. Acting in the interests of British taxpayers, Jingye will pursue legal action against relevant government officials and British Steel executives over the rushed takeover, which was executed without adequate preparation or a viable operating plan, causing significant losses to both taxpayers and the company.
UK Government Nationalizes British Steel, Sparks Tension with China
In April 2025, the UK government took control of British Steel. By July 16, 2026, they had completely nationalized the company, making it public property. Serving as the UK's sole primary steelmaker, British Steel supplies essential materials to the rail, construction, and automotive sectors, according to Reuters. The UK government has announced that an independent valuer will be appointed to determine if compensation is due to Jingye, as reported by the New York Times.
China's Ministry of Commerce voiced strong opposition on Friday to this action, expressing deep dissatisfaction with the UK's treatment of Jingye. They insisted that the UK adhere to international norms and honor its commitments under the China-UK investment protection agreement, ensuring fair and just treatment for Chinese-invested enterprises, a ministry spokesperson declared. The following day, another Foreign Ministry spokesperson emphasized China's support for its enterprises in defending their rights legally, noting China's close monitoring of the situation post-nationalization and its readiness to protect its interests as needed.