Chinese steelmaker Jingye initiates compensation claim against UK over British Steel nationalization
Jingye Steel, the Chinese owner of British Steel, has formally invoked a bilateral investment treaty with the UK to seek compensation after the British government nationalized the Scunthorpe steelworks on national security grounds in April 2024. The company claims debts of at least £711 million, though industry sources suggest it may be seeking over £1 billion. The dispute could strain UK-China relations and may proceed to international arbitration if unresolved within six months.
Jingye Steel has initiated formal consultation procedures under the UK-China bilateral investment treaty to recover compensation following the UK government's decision to nationalize British Steel's Scunthorpe plant. Prime Minister Keir Starmer announced the takeover citing national security concerns and the need to preserve domestic steel production capacity, though observers noted that preventing 2,700 immediate job losses in a historic British industry also influenced the decision. Jingye, which purchased British Steel in 2020 during a government-brokered deal, has claimed debts exceeding £711 million, with industry insiders suggesting the company may be pursuing claims above £1 billion. Under the investment treaty, the dispute could be escalated to international arbitration after a six-month consultation period. The UK government has indicated plans to eventually sell British Steel to new private owners and has announced tariff reductions on imported steel, which could make the company more commercially attractive to future investors.
What different sources said
- The GuardianLeft
China’s Jingye seeks compensation from UK over British Steel takeover
China’s Jingye seeks compensation from UK over British Steel takeover
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