China’s Jingye seeks compensation from UK over British Steel takeover
Summary
The Chinese company Jingye Steel is seeking compensation from the UK government after the UK took control of British Steel's Scunthorpe plant. Jingye is using an international treaty between China and the UK to try to recover money following the nationalisation of the steelworks.Key Facts
- Jingye Steel owns British Steel and is pursuing payment under the China-UK bilateral investment treaty.
- The UK nationalised British Steel in April 2023, citing national security and job concerns.
- Jingye had planned to close the Scunthorpe plant, risking 2,700 jobs and large losses.
- Jingye initially aimed to recover about £711 million but may seek over £1 billion.
- The dispute could be decided by an international arbitrator after six months of consultations.
- The UK government intends to fully nationalise British Steel and later sell it to new private owners.
- The UK plans to reduce tariff-free steel imports, potentially benefiting British Steel.
- New owners will likely need subsidies to update the plant with modern, eco-friendly technology.
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