China Rebukes UK Over Nationalisation of British Steel

China has rebuked the UK over its nationalisation of British Steel while separately urging global cooperation on AI development and warning against single-country dominance at a major Shanghai conference, as tensions escalate in the Strait of Hormuz threatening global energy security.

UK Nationalises British Steel

The UK nationalised British Steel on Thursday to protect national interests after its Chinese owner Jingye reported daily losses of 700,000 pounds and appeared to plan shutting down the Scunthorpe blast furnaces, which support 2,700 jobs and represent the UK's only primary steelmaking capacity. [1] British Steel is the only source of primary steelmaking in the UK and supports approximately 2,700 jobs across its main steelworks in Scunthorpe and across the wider supply chain. [1] The company’s former owner, Jingye, bought British Steel for 70 million pounds in 2020. [1] By 2025, Jingye said it was losing 700,000 pounds every day. [1] British Steel’s nationalisation has been in the works for more than a year. [1] In March 2025, Jingye carried out a consultation that concluded that the British Steel furnaces were not financially sustainable. [1] The following month, it emerged that Jingye had cancelled orders for a key material used in the steelmaking process, stoking fears that it was planning to shut down the blast furnaces. [1] That month, the UK government seized operational control of British Steel from Jingye to stop that from happening. [1] The Chinese company retained ownership, but lost operational control. [1] Thursday, though, saw ownership officially transfer to the UK government, which says it will appoint an independent valuer to assess whether any compensation is payable to Jingye. [1]

China's Strong Rebuke

China's Ministry of Commerce stated that the move seriously damaged Jingye's legitimate rights, disregarded its contributions to the UK economy, and severely undermined Chinese companies' confidence in investing in Britain. [1] The expropriation of British Steel “seriously damaged” Jingye’s legitimate rights and interests and “severely undermined” Chinese companies’ confidence in investing in the UK, China’s Ministry of Commerce said in a statement on Friday. [1] The UK, the ministry said, has “forcibly” taken over the company and “disregarded” Jingye’s contributions to the British economy and society. [1] The ministry urged the UK to fulfil obligations under the China-UK Investment Protection Agreement and said it would assist Chinese companies in protecting their rights. [1]

Xi Calls for Global AI Cooperation

At the World Artificial Intelligence Conference in Shanghai, President Xi Jinping called for AI to be developed through international cooperation rather than single-country dominance, opposed overstretching national security concepts in AI, and advocated laws, monitoring and systems to keep AI under human control. [3] "AI development should not be a solo performance by a single country, but a symphony of international cooperation," Xi said at the opening of the World Artificial Intelligence Conference. [3] "We should jointly oppose overstretching the national security concept in the field of AI or placing one country's security over that of others," Xi added. [3] "We should put in place laws and regulations, technological monitoring, early warning, and emergency response systems, in order to... ensure AI is always under human control," Xi told the conference, calling for a "people-centric" approach. [3] On Thursday, foreign minister Wang Yi and representatives from 29 countries including Russia, Pakistan and Indonesia signed an agreement establishing an intergovernmental AI cooperation group. [3] The World Artificial Intelligence Cooperation Organization, headquartered in Shanghai, aims to promote consultation and collaboration between members to ensure the "healthy and orderly" development of AI, state media reported. [3]

IEA Warns on Hormuz Energy Threat

The IEA chief Fatih Birol warned that the crisis in the Strait of Hormuz threatens global energy security, expressing worry that the situation must improve in the next few weeks as US strikes on Iran continue and Iran maintains closure of the strait. [2] Fatih Birol said on Thursday that the world should be concerned about energy security if the situation does not improve soon. [2] “Oil security is still a critical issue,” Birol said, speaking at an event hosted by the Council on Foreign Relations. [2] ”We should be worried, and I am worried if the situation does not improve in the next few weeks,” he added. [2] Birol’s comments came after the US intensified attacks on Iran, carrying out a sixth consecutive night of strikes, hitting Bandar Abbas, Ahvaz and Iranshahr, and firing on a ship it accused of trying to break its reimposed naval blockade on Iranian ports. [2] Tehran retaliated by launching missiles and drones at Washington’s allies in the region, targeting Kuwait, Bahrain and Jordan. [2] Explosions were also reported in Qatar. [2] The escalation has also put at risk a US-Iran memorandum of understanding (MoU), signed in Pakistan a month ago with the aim of securing a ceasefire. [2] Iran was maintaining its closure of the Strait of Hormuz, citing what it described as a lack of US commitment to the memorandum of understanding. [2]

China Backs Papua New Guinea on Taiwan Office Closure

China commended Papua New Guinea for ordering the closure of Taiwan's representative office, stating it demonstrates support for the one-China principle. [5] “China highly commends the decision, and it demonstrates once again that upholding the one-China principle is where international public opinion trends and the arc of history bends,” Foreign Ministry spokesman Lin Jian said at a regular press briefing in Beijing on Thursday. [5] The decision regarding the Taipei Economic Office in Port Moresby showed support for Beijing’s one-China policy, Papua New Guinea Foreign Minister Justin Tkatchenko said in a statement. [5] Taiwan’s Foreign Ministry said the decision was made without consulting Taipei and it lodged a formal protest with Papua New Guinea. [5] It added in the statement that the office continued normal operations. [5]

What to watch next: Efforts by the United States and Iran to improve oil flows through the Strait of Hormuz, along with the implementation of the new World Artificial Intelligence Cooperation Organization headquartered in Shanghai.