Chinese company Jingye Group has demanded compensation from the British government, saying it suffered major financial losses after the UK nationalised British Steel last week.
In a statement posted on WeChat on Sunday, Jingye criticised the UK government's decision, saying it had damaged Britain's reputation among international investors and violated international investment rules.
The company said it had started negotiations under bilateral investment agreements and reserved the right to pursue international arbitration if necessary.
Jingye also claimed it would represent British taxpayers in seeking legal action against the UK government and British Steel's management, although it did not explain how it planned to do so.
"The UK ignored Jingye's continued investment and significant contribution and was only willing to offer almost no compensation," the company said.
The UK government took operational control of British Steel last year after Jingye warned it was considering shutting down the blast furnaces at its Scunthorpe plant in northern England. The site is the UK's last facility producing "virgin steel" directly from raw materials.
Last week, the UK government announced it had formally nationalised the company, saying the move would protect thousands of jobs and ensure a domestic supply of steel for major infrastructure projects and the country's defence sector.
British officials said an independent assessment would determine whether Jingye is entitled to any compensation.
British Steel has been producing steel at its Scunthorpe plant for more than 130 years and currently employs around 2,700 workers.
Jingye acquired British Steel in 2020, saying at the time that it had rescued the company from financial collapse.
China's Foreign Ministry also criticised the UK's decision on Saturday, warning that the way the dispute is handled would affect Chinese investors' confidence in Britain's business environment.
The ministry urged the UK to respect market principles and contractual obligations and to reach a solution on compensation that is acceptable to both sides.
It added that China supports companies in protecting their legal rights through lawful means.