Chinese steelmaker Jingye demands compensation from UK over British Steel nationalization

Chinese steel giant Jingye has formally demanded that the British government provide "timely, complete, and effective" compensation for investment losses incurred following the nationalization of British Steel. The UK government announced its decision to take control of the company on Thursday.

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All investments made by Jingye are duly documented and will be claimed in their entirety, without yielding an inch.

In a statement, Jingye asserted that all its investments in British Steel are well-documented and will be claimed in full. The company has initiated consultations under a bilateral investment agreement and reserves all legal rights, including international arbitration. Jingye also intends to hold British officials and British Steel executives accountable, arguing the UK government acted "precipitously" without a management plan, causing losses to both taxpayers and the company.

The transfer of British Steel to public ownership followed the royal assent of the Steel Industry Nationalization Act, which recognizes the sector's strategic importance to the UK. Jingye contended that the steelmaker was on the verge of bankruptcy when it acquired the company in 2020. Over five years, Jingye claims to have invested substantial capital, sustained operations, and preserved thousands of jobs.

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The British side disregarded Jingye's continuous investment and enormous contribution, and is only willing to offer practically zero compensation.

Jingye criticized the British side for disregarding its continuous investment and significant contributions while offering minimal compensation. The Chinese government has also responded, with the Ministry of Foreign Affairs stating that Beijing "will do what is necessary to protect its rights" and urging the UK to find an "acceptable" resolution. The UK government justified the nationalization by stating that steel plays an essential role in the British economy and that no agreement beneficial to the taxpayer could be reached with Jingye. The decision, supported by British unions, is part of a broader strategy to bolster the domestic steel sector.

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Beijing will do what is necessary to protect its rights.