Jingye Group of China Vows Legal Action over British Steel Nationalization in UK

China's Jingye Group has expressed strong opposition to the British government's nationalization of British Steel, which it owns, demanding compensation and announcing its intention to pursue legal action.

According to AFP and major international media outlets on July 19, Jingye Group posted on its social media channels that "the British government's action constitutes a blatant act of expropriation and a public affront to the rule of law at the international level," and called for compensation for its investment losses as well as hinted at legal measures.

Jingye Group acquired British Steel in 2020. Photo by Reuters Yonhap News

Jingye Group stated that it has already initiated consultation procedures under the relevant bilateral investment agreement, and asserted that if an agreement cannot be reached, it reserves the right to take all legal measures, including international arbitration.

The company further criticized, "The rule of law must not be trampled, and the spirit of contract must not be violated," adding, "With the rule of law damaged to this extent, who would dare continue investing in the UK?"

Jingye Group also urged that, for the UK to nationalize British Steel, it must pay a fair price—such as swift and effective compensation for its investment. According to China's Ministry of Commerce, they also firmly oppose this move and have stated they will take strong action.

Previously, on July 16, the British government nationalized British Steel. Last year, when Jingye Group attempted to shut down its two remaining blast furnaces in Scunthorpe, England, the British government exercised emergency control and moved forward with nationalization. British Steel's blast furnaces are the last facilities in the UK to carry out primary steelmaking with iron ore rather than recycling scrap. If these are closed, the UK would become the only G7 country without iron ore-based steelmaking capabilities.

This content was produced with the assistance of AI translation services.