The UK government has passed legislation to nationalize British Steel, the country's last working steelworks. Previously owned by China's Jingye Group, the company was brought under public ownership to safeguard a vital national capability and protect the future of steel production after fears that the former owners would shut down the company's blast furnaces.
This move follows a government intervention 15 months ago intended to prevent the closure of steelworks in Scunthorpe and the loss of 4,000 jobs. While the UK government cited security risks to justify the appropriation of the loss-making firm, Jingye Group is now seeking compensation.
China's government has expressed strong dissatisfaction with the decision, stating that the move dealt a severe blow to the confidence of Chinese companies investing in the UK. Beijing has urged Britain to protect the rights and interests of Chinese investors and has vowed to take strong measures to defend its firms' interests.