China on Saturday reiterated its opposition to the UK government’s decision to nationalize British Steel, a subsidiary of China’s Jingye Group.
It urged London to “earnestly” respect market principles and the spirit of contract, and find solutions on compensation and other issues acceptable to both sides.
“China and the UK have signed an agreement concerning the protection of investments, and the legitimate rights and interests of investors must be fully protected in accordance with the law,” a Chinese Foreign Ministry spokesperson said in a statement.
British Steel was taken into public ownership on Thursday in a move the UK government said would protect jobs and safeguard “a vital national capability.”
UK Prime Minister Keir Starmer stated that this decision safeguards the future of the UK’s steel industry and protects skilled jobs.
“How the UK handles this matter will directly influence how Chinese investors view the investment environment in the UK and its government’s credibility,” the spokesperson added.
The spokesperson further said that China supports enterprises in safeguarding their legitimate rights and interests through legal means.
“China is closely following the developments and will do what is necessary to protect its rights,” the statement concluded.
