China’s Jingye has demanded compensation from the UK government and threatened international arbitration over the nationalisation of British Steel. The Beijing-based group, which bought the steelmaker in 2020, accused the UK of "blatant extortion" and offering "almost zero compensation," claiming the move violates international law and damages the UK’s credibility.

The UK government formally took the company into public ownership last week to protect thousands of jobs and preserve domestic steel production for infrastructure and defence. The government currently considers the commercial value of the business to be nil, though legislation requires a compensation scheme to be established, with regulations due this autumn.

The dispute centers on the Scunthorpe plant, which employs about 2,700 people and houses the UK's last blast furnaces capable of producing primary steel. China’s foreign ministry has urged the British government to find a "mutually acceptable" arrangement, noting that the outcome will affect Chinese investors' perceptions of the UK investment environment.