United Kingdom<\/a>.<\/p>\nThe Chinese side has called on the UK to fulfil its obligations under the bilateral investment treaty between the two countries in good faith. This legally binding agreement was signed in 1986 to promote and protect mutual investment.<\/p>\n
Beijing\u2019s statement claims that the British side forcibly took control of the company, citing national security and failing to take into account Jingye\u2019s contribution to the country\u2019s economy and society. The Ministry said it would monitor developments and support Chinese companies in defending their rights.<\/p>\n
How British Steel came under state control<\/h2>\n
On Wednesday, Parliament passed legislation allowing the government to nationalise the steel industry if it meets the public interest test. The following day, the government announced that the nationalisation of British Steel was intended to protect jobs and preserve a \u00abvital national capability\u00bb.<\/p>\n
The British authorities took control of the company\u2019s operations in Scanthorpe last year, but Jingye Group remained the owner. According to the BBC, this limited the government\u2019s ability to determine the company\u2019s future.<\/p>\n
Jingye is seeking compensation. The company had previously reported that the business was losing 700,000 pounds sterling a day. Blair MacDougall, Minister for Small Businesses, told the House of Commons that an independent valuer would be appointed in the autumn to determine the appropriate compensation; this amount could be zero.<\/p>\n
The government is keen to keep steel production going at Scanthorpe<\/h2>\n
Following its transfer to state ownership, the government gained the ability to determine the plant\u2019s future independently and to maintain the operation of the blast furnaces. The company directly employs around 2,700 people in Scanthorpe and also supports thousands of jobs in its supply chains.<\/p>\n
In March, the National Audit Office estimated the government\u2019s expenditure on the plant at approximately 1.3 million pounds a day. The Business Secretary Peter Kyle<\/strong> told the BBC that the government would cover operating costs in the immediate future.<\/p>\nThe UK imports most of its steel. The Scunthorpe plant produces grades of steel that are not yet manufactured elsewhere in the country; some of the output is used by Network Rail and the construction industry. The government\u2019s long-term strategy envisages a transition of domestic production to electric arc furnaces; however, London does not wish to halt production at Scunthorpe until alternatives become available.<\/p>\n
The decision could complicate relations between London and Beijing<\/h2>\n
The nationalisation of British Steel could heighten tensions in relations between London and Beijing. According to the BBC, this is happening on the eve of the entry into force Andy Bernama<\/strong> for the post of Prime Minister on Monday.<\/p>\nThe new head of government will have to decide on an approach to the dispute with Jingye, whilst taking into account the economic benefits of ties with the world\u2019s second-largest economy. China\u2019s statement shifts the British Steel issue from a purely domestic matter of British industrial policy into the realm of bilateral investment relations.<\/p>","protected":false},"excerpt":{"rendered":"
China has criticised the nationalisation of British Steel in the UK, claiming that it infringes the rights of Jingye Group and breaches the investment agreement.<\/p>","protected":false},"author":207433346,"featured_media":24945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_description":"\u041a\u0438\u0442\u0430\u0439 \u0440\u043e\u0437\u043a\u0440\u0438\u0442\u0438\u043a\u0443\u0432\u0430\u0432 \u043d\u0430\u0446\u0456\u043e\u043d\u0430\u043b\u0456\u0437\u0430\u0446\u0456\u044e British Steel \u0443 \u0411\u0440\u0438\u0442\u0430\u043d\u0456\u0457, \u0437\u0430\u044f\u0432\u0438\u0432\u0448\u0438 \u043f\u0440\u043e \u043f\u043e\u0440\u0443\u0448\u0435\u043d\u043d\u044f \u043f\u0440\u0430\u0432 Jingye Group \u0442\u0430 \u0456\u043d\u0432\u0435\u0441\u0442\u0438\u0446\u0456\u0439\u043d\u043e\u0433\u043e \u0434\u043e\u0433\u043e\u0432\u043e\u0440\u0443.","rank_math_title":"\u041d\u0430\u0446\u0456\u043e\u043d\u0430\u043b\u0456\u0437\u0430\u0446\u0456\u044f British Steel: \u043f\u043e\u0437\u0438\u0446\u0456\u044f \u041a\u0438\u0442\u0430\u044e \u0442\u0430 Jingye","rank_math_focus_keyword":"British Steel","td_subtitle":"","subtitle":"","footnotes":""},"categories":[805619],"tags":[],"class_list":["post-24938","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world"],"_links":{"self":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/24938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/users\/207433346"}],"replies":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/comments?post=24938"}],"version-history":[{"count":1,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/24938\/revisions"}],"predecessor-version":[{"id":24946,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/24938\/revisions\/24946"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/media\/24945"}],"wp:attachment":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/media?parent=24938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/categories?post=24938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/tags?post=24938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}