China has issued a formal warning to the British government over its plans to nationalise British Steel, urging London to “make decisions prudently” and threatening to take action to protect the interests of Chinese companies if the process moves forward.
Beijing’s commerce ministry said China would “closely follow developments” and take “strong measures to safeguard the legitimate rights of Chinese companies,” after Prime Minister Keir Starmer announced on Monday that Britain could bring British Steel into full public ownership. The Chinese statement called on the UK government to “respect the wishes of firms and market principles, and avoid the abuse of administrative coercive measures.”
The British government seized operational control of British Steel from its Chinese owners, Jingye Group, in April 2025 after the company failed to secure the raw materials needed to keep the Scunthorpe blast furnaces operating. New legislation giving the government the power to bring the steelmaker into public ownership has since been passed. A government spokesperson said the powers would only be used “where the public interest test has been met” and that the administration remained committed to respecting the rights of businesses.
The dispute adds a fresh dimension to an already complex period in UK-China relations, as London attempts to balance economic engagement with Beijing against domestic industrial policy imperatives and growing pressure to protect strategically important manufacturing assets.
