China's government has criticised the renationalisation of British Steel, saying it is 'strongly dissatisfied' as the previous Chinese owners face being left with nothing.The UK's Department for Business and Trade announced yesterday that the firm had been brought under public ownership to protect 'the future of steel production'.Ministers said the move was essential to maintain production at British Steel's site in Scunthorpe, Lincolnshire, to protect both the firm's future and UK supply chains.However, China's Ministry of Commerce (Mofcom) has hit back, saying the move dealt 'a severe blow to Chinese companies' confidence in investing in the UK'.British Steel was previously owned by the Chinese company Jingye. The company had previously planned to close its Scunthorpe blast furnaces.But Parliament was recalled on a Saturday in April last year to approve special measures legislation to keep the plant open.A Mofcom spokesperson told Chinese media outlet The Global Times: 'The UK side, disregarding Jingye Group's important contributions to the British economy and society, forcibly took control of British Steel and subsequently nationalised the company in the name of national security, seriously undermining Jingye's legitimate rights and interests and dealing a severe blow to Chinese companies' confidence in investing in the UK. The British Steel site in Scunthorpe, Lincolnshire, is pictured yesterday'China firmly opposes and is strongly dissatisfied with the UK government's decision.'China will closely follow developments, support Chinese companies in safeguarding their rights through legal means, and take strong measures to firmly protect the interests of Chinese companies.'The spokesperson reportedly said the UK Government should 'abide by relevant international rules, earnestly fulfil its obligations under the China-UK bilateral investment treaty, treat Chinese companies operating in the UK in a fair and impartial manner, and fully protect their legitimate rights and interests'.But ministers in Britain said the decision would 'protect thousands of jobs, support industry that relies on UK made steel and helps to safeguard supply chains, major infrastructure projects and national security'.The UK Government said a new leadership team will be appointed 'to focus on stabilising the business and developing a commercially sustainable, low-carbon future'.And an independent assessor will be appointed to determine if Jingye, which legally owned the company until yesterday, should receive any compensation for being stripped of the loss-making firm.Prime Minister Sir Keir Starmer said yesterday: 'British Steel is part of the fabric of our nation and a cornerstone of Britain's industrial strength.'Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.' Business and Trade Secretary during a visit to British Steel in Scunthorpe yesterdayHe continued: 'This Government will always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on can thrive long into the future.'The announcement followed the Steel Industry (Nationalisation) Act 2026 receiving royal assent and becoming law.The new law allows ministers to transfer steel businesses' shares or property into public ownership.It means the country's last two blast furnaces at Scunthorpe are formally under state ownership for the first time since 1988.But the Tories voiced concern about how much more public money will be spent on top of the £1million a day Scunthorpe has been losing since it was taken into state control last April.Andrew Griffith, Tory business spokesman, said: 'A blank cheque from the taxpayer isn't the answer.'Ministers need to stop channelling 1970s nationalisation vibes and come up with a proper plan to stop the deindustrialisation of Britain.'He added: 'The issue isn't compensation to China. It's whether the taxpayer should be picking up their billions of pounds of liabilities for decommissioning Scunthorpe.'Officials have already pledged to aim for '50 per cent of steel used in the UK to be made in the UK'.Business Secretary Peter Kyle said: 'British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead.'Speaking on BBC Radio 4's Today programme, he said allowing Scunthorpe to close would have left Britain 'in hock to global markets'.He added a long-term decision on replacing the ageing blast furnaces – potentially with another technology to produce virgin steel – 'will be a decision for this business and the government to decide going forward'.