UK Moves to Reclaim British Steel from Chinese Ownership
In a decisive move over the weekend, the UK Government announced it would take back control of British Steel from its current owner, Jingye Group, a private Chinese enterprise that acquired the company in 2020. This nationalisation marks a significant shift in British industrial policy, and has stirred international attention, not just for its economic implications, but for its diplomatic ramifications as well.
UK Business Secretary Jonathan Reynolds justified the decision by labelling previous policies "naive" and implying that the steel sector's strategic importance had been underestimated. He emphasized that permitting a foreign company, particularly from China, to dominate such a crucial industry raised national security and supply chain concerns.
China's Diplomatic Retort: Trade, Not Tension
Reacting to this development, Chinese Foreign Ministry Spokesperson Lin Jian addressed the issue in a measured tone during a press briefing on 14 April 2025. He underscored that Jingye Group is a private enterprise that had entered into a market-based partnership with the UK in good faith.
“As I understand, the Jingye Group you mentioned is a private Chinese enterprise that has business cooperation with the UK side on the basis of market principles,” Lin stated.
In this, China positioned itself as a partner willing to engage in open-market operations, and not as a geopolitical adversary. The Ministry urged London to approach the matter through consultation and mutual benefit, rather than confrontation and unilateral action.
Jingye’s Investment: A History of Cooperation
Jingye Group, which purchased British Steel after it collapsed in 2019, had pledged investment of £1.2 billion and maintained thousands of jobs in Scunthorpe and Teesside. The deal was initially welcomed as a lifeline, saving the British steel industry from extinction. However, over the years, concerns grew over operational inefficiencies, underinvestment, and strategic vulnerabilities, particularly as global tensions around supply chain autonomy increased.
Security, Sovereignty & the New Steel Order
The UK’s move reflects a broader global shift toward economic sovereignty, especially in sectors vital to infrastructure and defence. Reynolds stated that it would be irresponsible for any nation to “outsource its steel backbone” to foreign owners whose governments hold differing strategic agendas.
This sentiment mirrors trends in Europe, the U.S., and Australia, where foreign investments in critical infrastructure, from ports to power grids, have come under greater scrutiny. The UK now seems to be asserting its own red lines around strategic ownership and industrial independence.
Beijing's Caution: Don’t Politicise Economics
Lin Jian warned that turning a business dispute into a political flashpoint could erode future bilateral cooperation. He expressed hopes that the UK would adopt a fair and just approach, protecting the legitimate rights and interests of Chinese investors.
“We hope that the British government will treat Chinese companies investing and operating in the UK in a fair and just manner... and refrain from turning economic and trade cooperation into political and security issues,” said Lin.
The statement hints at possible retaliatory hesitation from Chinese firms considering future investments in the UK, raising concerns about a cooling of Sino-British commercial ties.
A Chasm Between Market Principles & Political Realism
This episode reveals a growing disconnect between economic globalism and political realism. While companies like Jingye may operate within international business norms, host nations are increasingly reevaluating the strategic consequences of such partnerships.
The UK government’s move to reclaim British Steel is being viewed not just as a domestic industrial policy shift, but as a signal that national interests may now override free-market orthodoxy, especially in sectors critical to resilience and self-reliance.
KEY TAKEAWAYS:
• UK government has taken control of British Steel from Chinese firm Jingye Group.
• Business Secretary Jonathan Reynolds called past reliance on China "naive."
• Chinese Foreign Ministry expressed concern, urging a fair & just resolution.
• Jingye Group, a private enterprise, previously invested £1.2 billion into UK steel.
• China warns against politicising trade & turning cooperation into a security issue.
• UK cited national security & supply chain resilience as reasons for nationalisation.
• This marks a broader global trend toward reclaiming critical infrastructure.
• Tensions highlight rift between market liberalism & national strategic interests.
• China cautioned the UK against actions that could deter future Chinese investment.
• The situation signals a potential cooling in Sino-British economic relations.
