China has strongly criticised the UK government’s decision to nationalise British Steel, warning that the move could damage confidence among Chinese companies investing in Britain.The UK took full ownership of the loss-making steelmaker after previously assuming operational control from Chinese owner Jingye. British officials said the decision was necessary to secure domestic steel production and protect a strategically important industrial business.

China’s Ministry of Commerce described the takeover as forced and said Britain had overlooked Jingye’s contribution to the UK economy and society. It argued that the action had seriously harmed the company’s legitimate rights and interests while creating uncertainty for other Chinese investors.

Beijing urged London to treat Chinese businesses fairly and honour its commitments under the China-UK Investment Protection Agreement. The ministry also said it would closely monitor developments and support Chinese companies seeking to protect their rights, although it did not explain what action might follow.The dispute adds fresh pressure to UK-China trade relations and places British Steel’s ownership, investment outlook and future operations under renewed scrutiny.