China urges UK to protect investors' rights after British Steel nationalization

China urged the United Kingdom to earnestly respect market principles and the spirit of contract, and find solutions on compensation and other issues acceptable to both sides, the Foreign Ministry said on Saturday after the UK government announced earlier that it had nationalized British Steel in accordance with the Steel Industry (Nationalisation) Act.

According to reports, the UK government took 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.

"The Ministry of Commerce of China has made a response, which you may refer to. Let me stress that this matter has drawn close attention from the Chinese public," a spokesperson with the ministry made the remarks on the UK nationalizing British Steel.

"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 said in a statement.

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

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