The UK government has nationalised British Steel, prompting the Chinese firm Jingye Group to demand full compensation through legal means.The decision came after Jingye announced plans to close the Scunthorpe steelworks due to financial viability concerns.

The government took control of the plant in April 2025, citing the need to safeguard a 'vital national capability' for primary steel production.

This move has strained UK-China relations, with Beijing condemning the action as an infringement on Jingye's rights and undermining confidence in Chinese investments.The steelworks employs 2,700 people and faces daily operational costs of £1.3m, according to a National Audit Office report.

Business Secretary Peter Kyle emphasized maintaining steel production independence, stating that closure would make the UK reliant on global supply chains.The nationalisation follows a failed negotiation process with Jingye, which had previously warned of significant financial losses.This development occurs amid political tensions as Andy Burnham prepares for his role as prime minister.