China’s Jingye Group has demanded compensation following the nationalization of British Steel, saying it has initiated consultations under the China-UK bilateral investment treaty and reserved the right to pursue international arbitration.
In a statement, Jingye said the UK government’s decision to take full ownership of British Steel had resulted in virtually zero compensation for its investment, despite the company acquiring the steelmaker in 2020 and subsequently investing in plant upgrades, technology and operations.
The company said it had returned British Steel to profitability after the acquisition and continued to invest in modernizing facilities while supporting employment and local supply chains. Jingye argued that the UK government’s actions disregarded its investment and contribution to the UK steel industry.
Jingye said it would seek full compensation for losses arising from its investment and pursue all available legal remedies, including international arbitration under the relevant bilateral investment treaty. The company also said it intends to take legal action against relevant government officials and British Steel executives over the nationalization process.
The UK government took operational control of British Steel in April 2025 before completing its nationalization on July 16, 2026. It has said an independent valuer will determine whether compensation is payable to Jingye.
The nationalization of British Steel follows concerns over the long-term future of the UK’s last remaining primary steelmaking facility, which supplies the rail, construction and automotive sectors.