Mixed reactions emerge to British Steel's nationalization. China has criticized the UK government's decision to nationalize British Steel, calling the move harmful to Chinese investors, while UK-based trade association UK Steel has welcomed the measure as a necessary step to safeguard the country's steelmaking capability.
The UK government formally brought British Steel into public ownership on July 16, taking full control of the loss-making steelmaker after concluding that nationalization was necessary to protect domestic steel production and the national interest, as SteelOrbis previously reported.
China condemns nationalization
According to a report by Reuters, China's Ministry of Commerce said it "firmly opposes and strongly disapproves" of the UK's decision to nationalize British Steel, which had previously been owned by Chinese steelmaker Jingye. The ministry said the British government had “forcibly” taken over the company while disregarding Jingye's contributions to the UK economy and society.
According to the ministry, the move has “seriously damaged” Jingye's legitimate rights and interests and "severely undermined" the confidence of Chinese companies investing in the UK.
China urged the UK to fulfill its obligations under the China-UK Investment Protection Agreement and said it would closely monitor developments while supporting Chinese companies in protecting their legitimate rights and interests. However, the ministry did not specify what measures such support could involve.
UK Steel welcomes government ownership
UK Steel welcomed the government's decision, describing it as an important milestone for one of the country's most strategically significant industries. The association said bringing British Steel into public ownership provides certainty for employees, customers and the wider supply chain while protecting a key part of the UK's industrial base.
While welcoming the nationalization, UK Steel stressed that public ownership should serve as the beginning of a long-term strategy rather than the final objective. The association called for investment in modernizing British Steel's operations, supporting the transition to low-carbon steelmaking and addressing the UK's high industrial energy costs.
UK Steel said that, with appropriate investment and supportive government policies, British Steel can secure a sustainable future, continue supporting thousands of skilled jobs and play a central role in the UK's industrial and decarbonization ambitions.
