China’s Jingye seeks compensation from UK over British Steel takeover

Sources say Chinese firm is asking for more than £1bn in row that could put pressure on two countries’ relationship

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The Chinese owner of British Steel has started a formal process under an international treaty to win compensation from the UK government over its decision to nationalise the Scunthorpe steelworks.

Jingye Steel said it would seek to recover money via China’s bilateral investment treaty with the UK, after more than a year of negotiations over the size of a potential payout. The dispute could put pressure on the relationship between China and the UK.