China attacks Labour over British Steel nationalisation

Beijing has attacked Labour’s decision to nationalise British Steel, warning it will damage Chinese investment in the UK.

Beijing has attacked Labour's decision to nationalise British Steel, warning it will damage Chinese investment in the UK. China's commerce ministry (Mofcom) said it "firmly opposes and was strongly dissatisfied with the UK government's decision". The Government confirmed on Thursday it had taken the Scunthorpe steelworks into public ownership, seizing formal control of the business from China's Jingye.

Labour said the move would protect the future of steel production in Britain. Ministers took over the operations of British Steel in April 2025 in order to stop its blast furnaces from being shut down and to protect 2,700 jobs at the plant and thousands of roles in its supply chain. A Mofcom spokesman said the move would deal a "severe blow to Chinese companies' confidence in investing in the UK".

"China will closely follow developments, support Chinese companies in safeguarding their rights through legal means, and take strong measures to firmly protect the interests of Chinese companies," they added. The Department for Business and Trade said nationalising British Steel was essential to maintain steel production at the company's site in Scunthorpe. Bringing it under public ownership for the first time since 1988 is also vital to protect both the company's future and UK supply chains, ministers said.

Jingye had demanded compensation from Britain in June for losses from investments made before the Government took over operation of the plant. The Mofcom spokesman added that the UK should "earnestly fulfil" its obligations under the China-UK bilateral investment treaty. The Government took over the plant despite it already costing taxpayers an estimated £1.3m per day, according to the National Audit Office.

Sir Keir Starmer said on Thursday: "British Steel is part of the fabric of our nation and a cornerstone of Britain's industrial strength. "Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability."