Chinese officials warn of investment fallout after UK seizes British Steel

Following the United Kingdom’s July 16 enactment of a law that places British Steel under state ownership, Chinese authorities warned that the action could trigger a broader erosion of confidence among Chinese investors. The ministry’s spokesperson highlighted that the steelmaker had been operating at a loss for years before Jingye Group’s acquisition, after which substantial funds were injected to keep the plant running and jobs intact. By invoking “national security” to override Jingye’s ownership, the British move, officials argue, not only harms the rightful interests of the Chinese owner but also sends a negative signal to all foreign capital considering the UK market. Beijing urged London to respect the China‑UK Bilateral Investment Protection Agreement and to treat Chinese‑run businesses with fairness and transparency. The spokesperson added that China will scrutinise the case and, if necessary, pursue all legal avenues to safeguard its companies’ rights.