Chinese steelmaker Hebei Jingye has initiated consultation procedures with the UK government under a bilateral investment treaty, seeking compensation for losses after the state takeover of British Steel, reports Caixin.
Jingye acquired British Steel in March 2020 for about £53 million (nearly $70 million), gaining control of a company with an annual crude steel production capacity of 4.5 million tons. Over the next five years, the Chinese firm invested more than £1.2 billion, despite daily losses of roughly £700,000.
The conflict erupted on March 27, 2025, when British Steel announced consultations on closing its two blast furnaces—the last two operating in the UK. To prevent the shutdowns, the government rushed the Steel Industry (Special Measures) Act through parliament in a single day in April 2025, authorizing a state takeover.