Overview
- Parliament passed the Steel Industry (Nationalisation) Act on 16 July 2026 and the government formally transferred British Steel into public ownership to keep the Scunthorpe blast furnaces running.
- Jingye Group said on 19 July 2026 that it has begun treaty negotiation procedures and reserved the right to bring international arbitration to seek compensation for its investment losses.
- Ministers have put a government team in charge of stabilising operations and are funding immediate running costs while an independent valuation is prepared to decide whether and how much compensation will be paid.
- Chinese ministries have publicly criticised the U.K. action, warned it could harm Chinese investor confidence, and said Beijing will monitor developments and safeguard legitimate rights where appropriate.
- The Scunthorpe plant is the UK's last 'virgin steel' mill, employs about 2,700 people, was bought by Jingye in 2020 after a rescue sale, and the nationalisation creates a likely legal and diplomatic dispute that could affect future UK-China investment and plans to decarbonise the steel sector.