The UK government formally took British Steel into public ownership on 16 July 2026 following royal assent of the Steel Industry (Nationalisation) Act, as reported by Guardian Business and Oilprice. The Scunthorpe steelworks was expropriated from Chinese owner Jingye, which had acquired the facility approximately 15 months earlier after an initial government intervention to prevent closure. The legislation included a public interest test, and ministers have indicated they will appoint a valuer to determine compensation owed to Jingye. A new leadership team has been installed to stabilise operations.
The nationalisation directly affects Jingye, the private Chinese conglomerate that previously held ownership of the Scunthorpe facility and whose investment in the UK asset has now been expropriated pending a compensation assessment. The move also has implications for GBP and GBPUSD, as China's Ministry of Commerce responded on 17 July 2026 by stating it is "strongly dissatisfied" with the decision, claiming it deals a "severe blow" to Chinese companies' confidence in investing in the United Kingdom.
China's Ministry of Commerce issued a formal statement on 17 July 2026 expressing strong dissatisfaction with the UK's action, framing the nationalisation as damaging to broader bilateral investment relations. The UK government cited national interest and the protection of approximately 4,000 jobs at the Scunthorpe site as the basis for the expropriation.
Sources: Guardian Business, Oilprice