Chinese company demands compensation from the UK over British Steel nationalisation
The Chinese company that formerly owned British Steel demanded on Sunday compensation from the UK government for investment losses following the nationalisation of the manufacturer last week.
Jingye Group said in a WeChat statement that the nationalisation move tarnished the credibility of the British government, spooked international investors and caused great losses to the company’s operations and British taxpayers’ funds. It also demanded that the UK government stop “trampling on international investment rules”.
The Chinese company announced it had initiated negotiation procedures under relevant bilateral investment agreements, reserving all rights, including the right to international arbitration. Jingye said it will also represent British taxpayers seeking to hold the UK government and British Steel’s management legally liable. However, it did not specify how it would handle the case.
“The UK disregarded Jingye’s continuous investment and significant contribution and was only willing to provide almost zero compensation,” it said.
An independent evaluation will be carried out to determine whether any compensation will be paid to Jingye Group, the UK government said last week.