China urged the UK government on Thursday to make prudent decisions over plans to nationalise British Steel and called on it to respect company wishes and market principles.

China’s commerce ministry said the UK should avoid abusing administrative coercive measures. The statement came after Britain seized operational control of British Steel from its Chinese owner Jingye in April 2025.

Under plans announced by Prime Minister Keir Starmer on Monday, the UK government could fully nationalise British Steel.

China said it would closely follow developments and take strong measures to safeguard the legitimate rights of Chinese companies.

A UK government spokesperson said the government was committed to respecting business rights. The spokesperson said powers under the new legislation would only be used where the public interest test had been met.