The UK government announced on Thursday that bringing the loss-making British Steel into public ownership would help protect jobs and secure the country's strategically important steelmaking capacity.
Although the UK government assumed operational control of British Steel's Scunthorpe plant last year, ownership of the company remained with China's Jingye Group, limiting the government's authority over long-term strategic decisions. The nationalization will transfer the company's ownership to the state.
Beijing: Rights of Chinese investors have been violated
In a statement released on Friday, China's Ministry of Commerce expressed strong dissatisfaction with the decision, stating that it seriously infringes upon the legitimate rights and interests of Jingye Group.
The ministry argued that the UK had forcibly taken control of the company under the pretext of national security while ignoring Jingye's contribution to the British economy and employment.
China also urged the UK government to honor its obligations under the 1986 China–United Kingdom Bilateral Investment Treaty, which contains legally binding provisions aimed at protecting and promoting bilateral investment.
China to closely monitor developments
Beijing stated that it will closely monitor the situation surrounding British Steel and provide the necessary support for Chinese companies to safeguard their legal rights, although it did not specify what measures such support may include.
The nationalization of British Steel is viewed not only as a significant development for the future of the UK's steel industry but also as a potential new source of tension in the broader economic and investment relationship between London and Beijing.
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