Economy News

UK nationalises British Steel; China says it is ‘strongly dissatisfied’

British Steel was formally taken into public ownership on Thursday 16 July, 15 months after the government stepped in to stop its Chinese owner, Jingye, from shutting the blast furnaces at Scunthorpe, The Guardian reports. The Steel Industry (Nationalisation) Act received royal assent the day before. An independent valuer will now “assess whether any compensation is payable”.

On Friday China's Ministry of Commerce said the move dealt “a severe blow to Chinese companies' confidence in investing in the UK” and that it would support Jingye in protecting its rights “through legal means”. On Saturday, Al Jazeera reports, the Foreign Ministry added that how Britain handles the matter will shape Chinese views of the government's credibility, and urged a solution that includes compensation.

“British Steel is part of the fabric of our nation and a cornerstone of Britain's industrial strength.” — Keir Starmer, via The Guardian

How each outlet framed it

• The Guardian — one of Starmer's last acts as prime minister, welcomed by unions and UK Steel; it notes the ageing furnaces must be replaced and that electric arc furnaces are likely to cost well over a billion pounds. Donald Trump praised the decision.
• Al Jazeera — the money behind the row: Jingye bought British Steel for £70m in 2020 and said by 2025 it was losing £700,000 a day. Closing Scunthorpe would have left Britain the only G7 country unable to make virgin steel.

Where the numbers differ: The Guardian puts the jobs saved at 4,000; Al Jazeera says it supports about 2,700 jobs across its Scunthorpe steelworks and supply chain.