The Chinese commerce ministry has strongly opposed the UK government's decision to nationalise British Steel, accusing London of violating the China–UK Bilateral Investment Treaty.

The move, which took control of the Scunthorpe-based steelworks last year, has sparked concerns over Beijing's stance on foreign investments in the UK.

While the UK claims the takeover protects jobs and ensures a 'vital national capability', China argues it undermines the rights of Jingye Group, the Chinese firm that previously owned the business.

The ministry expressed dissatisfaction with the British government's actions, which it says disregard Jingye's contributions to the UK economy.This decision threatens to strain UK-China relations as Andy Burnham prepares to become prime minister.

The nationalisation follows parliamentary approval for public ownership under specific conditions, though the government faces significant financial costs, with daily expenses exceeding £1m.Jingye is seeking compensation for losses incurred during the transition, but has not responded to recent announcements.The situation highlights broader tensions between economic sovereignty and foreign investment in international trade agreements.