View of a logo of Jingye Group Photo: VCG

Chinese steelmaker Jingye Group, owner of British Steel, said on Thursday that it has recently initiated consultation proceedings under the bilateral investment treaty with the British government, demanding that the British government respect the objective facts and provide prompt, adequate and effective compensation for Jingye's investment losses in British Steel, in response to the British government's takeover of and planning to nationalize British Steel. 

The Chinese steelmaker said that it reserves the right to initiate further legal proceedings against the responsible parties in accordance with international and domestic law, and will use all legal means to continuously and firmly protect all its legitimate rights and interests. 

On March 9, 2020, Jingye acquired British Steel, which was then on the verge of bankruptcy, successfully rescuing the century-old steelmaker. Over the past five years, Jingye has injected substantial capital to upgrade obsolete equipment, guaranteed the payment of employee wages, fulfilled all tax obligations in full compliance with the law, and created tens of thousands of jobs, according to the company's statement posted on its official WeChat account.

In alignment with the UK government's strategic goal of achieving net-zero emissions for iron-and-steelmaking enterprises by 2035, Jingye proactively funded the green transition of British Steel using its own resources, even as the government's promised support funding failed to materialize, the company said.

These facts fully demonstrate that Jingye is a responsible and accountable Chinese private enterprise. Its investment conduct has been entirely legitimate, compliant, and consistent with market principles and international business practices.

Regrettably, the UK government failed to honor its commitments to support Jingye in advancing the green transition of British Steel. In April 2025, the UK government passed the Steel Industry (Special Measures) Act to force a state takeover of British Steel operations, thereby stripping Jingye - as the shareholder - of its rights to control, management, and dividends.

According to estimates by the UK National Audit Office, the UK government had already spent 377 million pounds ($504.31 million) on this intervention by the end of January 2026, with projections exceeding 600 million pounds by the end of June. In May 2026, the UK government announced its intention to legislate for the full nationalization of British Steel, and the draft Steel Industry (Nationalisation) Bill has since been published.

Jingye has made numerous efforts and actively engaged with relevant parties, urging the British side to properly resolve the British Steel issue, but the British government has not yet provided reasonable compensation. 

Jingye expressed hope that the British government will adhere to its publicly stated commitment to the rule of law and the rules-based international legal order, uphold the principles of fairness, impartiality, and objectivity, resolve the British Steel issue amicably in a prudent and responsible manner so as to fully protect the legitimate rights and interests of Jingye and other Chinese enterprises as well as global investors in accordance with the law, and firmly safeguard the stability and credibility of the international investment order.

On May 14, China's Ministry of Commerce (MOFCOM) urged Britain to uphold fairness, impartiality and non-discrimination, act cautiously in its decisions, and safeguard the legitimate rights and interests of Chinese enterprises.

The British government has controlled British Steel for more than a year since taking it over from the Chinese company, a MOFCOM spokesperson said, stressing that any action taken by Britain should fully consider the substantial investment made by the Chinese company in the British steel industry and its contribution to the British economy and society.

The spokesperson called on Britain to respect the will of the Chinese enterprise and market principles, refrain from abusing administrative coercive measures, and actively seek a fair, just solution acceptable to both sides.

"China will closely follow the development of the situation and take firm measures to protect the legitimate rights and interests of Chinese enterprises," the spokesperson said.