Jingye invokes China–UK investment treaty

Chinese steelmaker Jingye has started formal consultation procedures with the UK government under the China–UK bilateral investment treaty after more than a year of negotiations over the size of a potential payout. The company is seeking to recover money through this treaty framework, marking a shift from informal talks to a structured dispute-resolution process.

Jingye disclosed the move in a statement posted on its WeChat account, stating that it had recently initiated consultation procedures with the UK government. The announcement follows extended discussions that had not delivered an agreed figure for any compensation.

In its statement, Jingye said it hoped the UK government could fully safeguard the legitimate rights and interests of Jingye and other Chinese businesses, as well as global investors. By invoking the treaty, the company is using an established international mechanism designed to protect foreign investments.

Turning to the bilateral investment treaty is expected to give Jingye additional leverage in talks with the UK authorities. The structured consultation process sets clear steps and timelines that shape the next phase of the dispute.

Under the terms of the China–UK investment treaty cited in the company’s statement, the dispute can be referred to an international arbitrator if it remains unresolved after a six-month consultation period. This creates a formal path from government-to-investor discussions toward binding third-party adjudication.

The six-month window provides both sides with an opportunity to reach an agreement before the matter moves to arbitration. If the case proceeds, an arbitrator would then be tasked with deciding the outcome under the treaty’s provisions.

Jingye’s decision to activate the treaty procedures follows more than a year of negotiations with the UK over a possible payout, highlighting the lack of a concluded settlement so far. The formal consultation phase introduces legal and procedural discipline to discussions that had previously been conducted on a negotiating basis.

The development adds a new dimension to the relationship between Jingye and the UK government, with the treaty framework now guiding how the dispute may be addressed. The outcome of the consultations, or any subsequent arbitration, will determine whether and how Jingye recovers money under the investment protections it is invoking.