UK nationalizes Steel, sparking diplomatic row with China

The United Kingdom has nationalized British Steel, taking the country's largest steel producer into public ownership to secure thousands of jobs and preserve a critical industrial capability, a move that has triggered a formal diplomatic dispute with China. The government completed the takeover on July 16, 2026, using powers granted by the newly enacted Steel Industry Nationalisation Act.

Prime Minister Keir Starmer stated the decision safeguards the future of steelmaking in the UK and protects a vital national asset. Business Secretary Peter Kyle said the action was taken in the public interest to maintain domestic production of virgin steel, which is essential for national infrastructure and economic resilience. The Scunthorpe-based plant, which employs approximately 2,700 people directly and supports thousands more in its supply chain, is one of Britain's last remaining facilities capable of producing primary steel.

The nationalization concludes a process that began in April 2025, when the government assumed operational control of the steelworks. This intervention followed reports that the Chinese owner, Jingye Group, was preparing to close its blast furnaces. Officials said...