China’s Jingye Group has initiated consultations with the UK government under the bilateral investment treaty between the two countries, seeking compensation for losses incurred following the government’s takeover of British Steel and proposed nationalization of the company.
Jingye said the UK government should provide prompt, adequate and effective compensation for its investment and respect the rights of foreign investors. The company added that it reserves the right to pursue further legal action under international and domestic law to protect its interests.
The Chinese steelmaker acquired British Steel in 2020, rescuing the company from insolvency. According to Jingye, it has invested substantial funds in the business over the past five years, including upgrades to production facilities and support for the company’s decarbonization efforts.
The dispute stems from the UK government’s intervention in British Steel’s operations in April 2025 through the Steel Industry (Special Measures) Act, which transferred operational control of the company to the government. In May 2026, the UK government announced plans to fully nationalize the steelmaker and subsequently published draft legislation for the process.
Jingye said it had repeatedly engaged with UK authorities to seek a resolution but had yet to receive what it considers reasonable compensation. The company argued that the government’s actions deprived it of shareholder rights, including management control and dividend entitlements.
British Steel operates the Scunthorpe steelworks, home to the UK’s last remaining blast furnaces, and has been at the center of government efforts to preserve domestic steelmaking capacity while pursuing the industry’s decarbonization.
