China said Friday that it strongly opposes the U.K.'s nationalization of British Steel, warning that the forced takeover of Chinese-owned Jingye Group's assets would be a severe blow to foreign investor confidence.
The U.K. government brought British Steel under public ownership on Thursday, saying the move was needed to protect its national interest. U.K. Prime Minister Keir Starmer said the "decision secures the future of steelmaking in the U.K., protects skilled jobs and safeguards a vital national capability."
"The U.K. side has completely disregarded the important contribution made by Jingye to the British economy and society. Using national security as a pretext to forcefully take over and nationalize British Steel seriously harms the legitimate rights and interests of the Chinese company," China's commerce ministry said Friday.
The Chinese ministry said it would closely monitor the situation and support Chinese enterprises using legal means to defend their rights. It urged the U.K. to uphold a bilateral investment agreement and treat Chinese companies fairly.
Jingye Group acquired loss-making British Steel out of insolvency in 2020, following the collapse of its previous private-equity owner. The U.K. government seized operational control of British Steel from Jingye last year to prevent the closure of the steelworks in Scunthorpe in northern England.
