China says closely monitoring UK nationalization of British Steel

China is closely monitoring the UK government's nationalization of British Steel and will take necessary measures to safeguard its legitimate rights if needed, a Chinese Foreign Ministry spokesperson said on Saturday.

The spokesperson made the remarks when asked about reports that the UK government announced on July 16 that it had nationalized British Steel in accordance with the Steel Industry (Nationalisation) Act, taking over the enterprise previously controlled by China's Jingye Group, and would establish a compensation mechanism through secondary legislation, with an independent assessment to determine whether compensation is needed. UK Prime Minister Keir Starmer stated that the decision safeguards the future of the UK's steel industry and protects skilled jobs.

"Let me stress that this matter has drawn close attention from the Chinese public. How the UK handles this matter will directly influence how Chinese investors view the investment environment in the UK and its government's credibility," the spokesperson pointed out.

China and the UK have signed an agreement concerning the protection of investments, and the legitimate rights and interests of investors must be fully protected in accordance with the law, the spokesperson said.

The spokesperson urged the UK to earnestly respect market principles and the spirit of contract and find solutions on compensation and other issues acceptable to both sides.

"China supports enterprises in safeguarding their legitimate rights and interests through legal means. China is closely following the developments and will do what is necessary to protect its rights," the spokesperson added.