Why is China protesting about the nationalisation of British Steel?
Summary
The UK government nationalised British Steel, a steel plant owned by China’s Jingye Group, to keep the plant open and protect jobs and national interests. Jingye is demanding compensation, saying the UK broke investment rules and unfairly took over the company, while China warns it will protect the company’s rights.Key Facts
- The UK took control of British Steel to stop the Chinese owner Jingye Group from closing its steel blast furnaces.
- British Steel’s Scunthorpe plant is the last in the UK making steel from raw materials and employs about 2,700 people.
- The UK government said nationalisation secures jobs and ensures steel supply for important projects like construction and defence.
- Jingye Group claims the UK offered almost no compensation and demands full payment for its investment losses.
- The UK has already spent over £377 million ($507 million) running British Steel and may spend over £600 million ($807 million) by June 2024.
- China says the UK’s action harms Jingye’s legal rights, investor confidence, and violates a 1986 investment protection treaty.
- China’s Ministry of Commerce and Foreign Affairs warned the UK to respect the investment agreement and protect investors’ rights.
- Leadership changes in the UK were expected during these tensions, with Labour Party leader Andy Burnham set to become prime minister.
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