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Chinese company demands compensation from the UK over British Steel nationalization
AP News • • general
Key Points:
- Jingye Group, the former Chinese owner of British Steel, demanded compensation from the UK government for investment losses following the nationalization of the steelmaker last week.
- The UK government took control of British Steel to prevent the closure of its Scunthorpe blast furnaces, the last in the UK producing virgin steel, aiming to protect jobs and national interests.
- Jingye criticized the UK for damaging its credibility and international investment confidence, initiating negotiations under bilateral investment agreements and reserving the right to pursue international arbitration.
- The UK government stated an independent evaluation would determine compensation, emphasizing the nationalization was to safeguard thousands of jobs and ensure steel supply for key industries.
- China urged the UK to respect market principles and contractual agreements, warning that the handling of the issue will affect Chinese investor confidence in the UK.
