Britain nationalizes British Steel, drawing sharp criticism from China

The UK government has nationalized British Steel, the country's last producer of virgin steel, after failing to reach a deal with Chinese owner Jingye, prompting a fierce response from Beijing.

What happened

The transfer to public ownership took immediate effect on 16 July 2026, following royal assent of the Steel Industry Nationalisation Law. An independent assessor will determine whether Jingye receives compensation. A new management team will focus on stabilising operations, maintaining production, and transitioning to low-carbon steelmaking Source: elmundoes, infobae. The government cited years of global overcapacity, unfair competition, and high operating costs as reasons for the intervention. The nationalisation was welcomed by UK unions, who said it would protect thousands of jobs Source: abces.

The reaction

China's Ministry of Commerce expressed "deep dissatisfaction," accusing the UK of ignoring Jingye's investments—over £1.2 billion since 2020—and undermining Chinese firms' confidence in investing in Britain. Beijing urged London to comply with international rules and the bilateral investment treaty, warning it would "take resolute measures" to protect Chinese companies' interests Source: infobae, euronewses. In contrast, UK Prime Minister Keir Starmer declared the decision "guarantees the future of steel production in the UK, protects skilled jobs, and safeguards a vital national capacity" Source: elmundoes. Business Secretary Peter Kyle stated that British Steel now "belongs to the British people," with the goal of building a sustainable, competitive, and decarbonised sector Source: euronewses.

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