View of a logo of Jingye Group Photo: VCG

China's Jingye Group on Sunday demanded that the UK government fully compensate the company for all losses arising from its investment in British Steel, saying that it had initiated consultations under the relevant bilateral investment treaty, and that it reserves all legal rights and would never compromise.

The demand, made in a statement published on Jingye's official WeChat account, followed the UK government's decision on Thursday to nationalize British Steel, stripping Jingye Group of ownership of the company it acquired in 2020.

Jingye said it would reserve all legal rights and take firm action to defend its legitimate interests, accusing the British government of disregarding the Chinese company's sustained investment and contribution to the UK steel industry while offering compensation that was "virtually zero."

When Jingye acquired British Steel in 2020, the century-old steelmaker was on the brink of collapse. Through internal restructuring and operational improvements, Jingye returned the company to profitability within a year of the acquisition, the statement said.

Over the following five years, Jingye continued to inject substantial funds into British Steel, upgrading aging equipment, introducing new technologies and paying taxes in full. Its investment created and supported tens of thousands of jobs while contributing to the development of local communities and related industries, according to the company.

Through concrete actions, Jingye said that it had made a major contribution to the survival and development of British Steel and the revitalization of the UK steel industry.

The statement accused the British government of repeatedly breaking its commitments since Jingye acquired the company - moving from pledging joint investment to failing to deliver the promised support, and from forcibly taking control of British Steel to placing it under full state ownership.

"The British side has disregarded Jingye's sustained investment and substantial contribution, while offering compensation that is virtually zero," read the statement. The UK government will pay the price for its bad-faith seizure of Jingye's assets and contempt for the rule of law, the company said.

Citing a report by the UK's National Audit Office, the statement said that the British government had spent 377 million pounds ($501 million) on British Steel's operations as of the end of January 2026. The figure was expected to exceed 600 million pounds by the end of June and could surpass 1.5 billion pounds by 2028.

The UK government's move amounted to a brazen seizure and a flagrant violation of the international rule of law, the company said. "What the UK government has done to Jingye is destroying its own credibility, chilling the confidence of investors worldwide and undermining the very foundation of its standing as a country governed by the rule of law," the statement said.

Jian Junbo, director of the Center for China-Europe Relations Studies at Fudan University, told the Global Times that the UK's move reflects a protectionist approach that undermines the principles of fair competition and creates uncertainty for foreign investors. "Such uncertainty would not only affect Chinese companies, but also undermine the UK's efforts to attract global investment and maintain its reputation as an open market," he added.

Jingye demanded that the UK government immediately stop using domestic law to override international investment rules and provide prompt, adequate and effective compensation for all losses.

Every investment made by Jingye is fully documented, and the company will seek to recover every amount, the statement said. Jingye has initiated consultations under the relevant bilateral investment treaty and reserves all legal rights, including the right to pursue international arbitration, it added, stressing that the company would never compromise.

Acting in the interests of British taxpayers, Jingye will pursue legal action against relevant government officials and British Steel executives over the rushed takeover, which was carried out without adequate preparation or a viable operating plan and caused substantial losses to both taxpayers and the company.

The UK government seized operational control of British Steel in April 2025 before taking the company fully into public ownership on July 16, 2026. British Steel, the UK's last remaining primary steelmaking site, supplies the rail, construction and automotive industries, according to Reuters.

The UK government said an independent valuer would be appointed to assess whether compensation should be paid to Jingye, according to the New York Times.

China's Ministry of Commerce on Friday expressed firm opposition to and strong dissatisfaction over the UK government's move on Jingye. China urged the UK to abide by relevant international rules, fulfill its obligations under the China-UK investment protection agreement and accord Chinese-invested enterprises fair and equitable treatment, a ministry spokesperson said.

China supports enterprises in safeguarding their legitimate rights and interests through legal means, said a Foreign Ministry spokesperson on Saturday, adding that China is closely following the developments after the UK nationalized British Steel and will do what is necessary to protect its rights.