China Warns UK: "We Will Act" After Steel Nationalization Threatens $1 Billion in Investments
China has warned it will take all necessary measures to protect its rights after the United Kingdom nationalized British Steel, calling the move "unacceptable" and a violation of market principles.
The British government announced earlier this week that it would take the struggling steelmaker into public ownership for the first time since 1988, aiming to secure thousands of jobs and protect supply chains deemed vital for national infrastructure and defense [198338][197301]. The decision drew immediate criticism from Beijing, with China's foreign ministry stating on Thursday that it will "do what is necessary to protect its legitimate rights" [199180].
A Chinese foreign ministry spokesperson said the nationalization could affect Chinese companies and investments, though no specific actions Beijing might take were detailed [199171]. China's Ministry of Commerce separately called the decision a "wrong move" that undermines free market principles and could disrupt fair competition, warning that it could harm bilateral trade relations [197925].
Beijing formally stated its strong opposition, arguing the nationalization violates international trade rules and urging the UK to respect market principles [197918]. The UK government has not yet disclosed the full cost or timeline of the takeover, but officials said the move is necessary to protect "a vital national capability" [198338].