Chinese group warns of legal action after UK nationalizes British Steel

China's Jingye Group said on Sunday it will pursue all available legal remedies, including international arbitration, to safeguard its lawful rights after the British government nationalized British Steel, a company previously owned by the Chinese steelmaker.

In a statement, the group said it acquired the loss-making company in 2020 and had invested heavily over the past five years to upgrade equipment, improve technology and maintain operations despite challenges.

The company said the UK government had failed to honor earlier commitments and proceeded with the takeover and nationalization while offering what it described as inadequate compensation for its investment.

Jingye Group said it has initiated consultations under relevant bilateral investment treaties and reserved all legal rights to seek full compensation for its investment losses, including through international arbitration.

The company also called on the UK government to provide timely, adequate and effective compensation and said it would seek accountability for losses resulting from the government's takeover of British Steel.