China’s Jingye Steel is seeking compensation from the British government over the nationalization of its former steel production complex in England, further straining relations between London and Beijing.
The UK government brought British Steel under the state’s control last year and took full ownership last week, citing national security considerations after Jingye, the former owner, said it planned to close the site because of financial reasons.
The Chinese government criticized the UK over the move, adding to the challenges facing the UK’s Andy Burnham when he takes over as prime minister Monday: China’s foreign ministry warned that the matter will “directly affect Chinese investors’ perception of the UK investment environment.”