Chinese company demands compensation from the UK over British Steel nationalisation

Jingye Group, the former owner of British Steel, is demanding compensation from the UK government after the manufacturer's nationalization last week. The Chinese company stated that the UK's move tarnished its governmental credibility, deterred international investors, and resulted in substantial losses for Jingye's operations and British taxpayers.

In a WeChat statement, Jingye Group accused the UK government of "trampling on international investment rules." The company announced it has initiated negotiation procedures under relevant bilateral investment agreements, explicitly reserving all its rights, including the option for international arbitration. Jingye also indicated its intention to represent British taxpayers in holding the UK government and British Steel's management legally accountable.

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The nationalisation move tarnished the credibility of the British government, spooked international investors and caused great losses to the company’s operations and British taxpayers’ funds. It also demanded that the UK government stop “trampling on international investment rules”.

The UK government, however, stated that an independent evaluation would be conducted to determine if any compensation would be paid to Jingye Group. This follows the British government taking operational control of the company last year when Jingye Group considered closing the blast furnaces at its Scunthorpe plant, the last in the UK to produce "virgin steel" from raw materials.

Jingye Group asserted that the UK "disregarded Jingye’s continuous investment and significant contribution and was only willing to provide almost zero compensation." The company's demand underscores a significant dispute over investment protections and the handling of the nationalization process.

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The UK disregarded Jingye’s continuous investment and significant contribution and was only willing to provide almost zero compensation.