China to take measures on UK’s nationalization of British Steel

China’s Foreign Ministry said on Saturday that it would closely monitor the United Kingdom’s nationalization of Chinese steelmaker-owned British Steel and will take appropriate measures to safeguard legitimate rights and interests if warranted.

Britain nationalized British Steel on Thursday, fully taking over the loss-making company that was previously owned by Chinese private steelmaker Jingye on national security grounds.

“The issue has drawn widespread attention in China,” the foreign ministry said in a statement.

“How Britain handles the matter will directly affect Chinese investors’ confidence in the UK’s investment climate and shape public perceptions in China of the British government’s credibility,” it said.

The ministry also urged Britain to seek a mutually acceptable solution, including arrangements for compensation.

Jingye Steel said last week it wants Britain to compensate it for the loss incurred through its investment in British Steel.

(Reporting by Shanghai Newsroom; Editing by Kirsten Donovan)