Chinese company warns of legal action after British Steel nationalization
Jingye Steel demanded compensation and threatened the U.K. government with legal action on July 19, after London took control of British Steel from the Chinese firm.Jingye, which bought British Steel in 2020, lost control of it last year when the U.K. government intervened at the struggling firm.
Britain’s last factory capable of making steel from scratch had faced imminent closure after Jingye said the plant in Scunthorpe, northern England, was no longer financially viable.
The announcement prompted the government to step in and take control of it in April 2025, and on July 16, the government announced that it had brought it into full public ownership.
But Jingye threatened legal action against the move and accused the U.K. government of “trampling on international investment rules” and “outright robbery” as it demanded compensation for “investment losses” in a statement on its official WeChat account on July 19.
