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Chinese interest and investments
- a key industry that will support economic growth. Its interest in the UK's new reactors is therefore underpinned by a strategic gambit, as the Joint Intelligence Committee (JIC) assessed ***:
***. China also wants to become a global Civil Nuclear supplier.
For China, the proposed investment in the UK nuclear industry is intended to provide expertise, experience and credibility to support the export of nuclear technology and services.[1]
- In its bid to become a global supplier, China is looking to capitalise on the UK's international leadership position: China sees UK regulatory approval as a valuable 'test bed' for proving Chinese technology for export to other Western markets. The Chief Operating Officer of China General Nuclear UK—the main Chinese investor in the Civil Nuclear sector—has said: "For us, the UK is an important stepping stone into Europe. The [UK's regulatory] process is recognised in the nuclear world as having a lot of clout."[2] Since this Inquiry concluded, the Office for Nuclear Regulation (ONR) has approved CGN's design for its Hualong One reactor[3] (although local permissions would still need to be sought before it could be built in the UK).
Chinese investments
Hinkley Point C (financing)
- Two new reactors at Hinkley Point—the first to be constructed in the UK for over 20 years—are due to enter service in 2027 and will, together, produce 7% of the UK's total electricity. The site is being developed by EDF, the eventual operators; however, the Government announced in September 2015 that CGN would be investing in the project and providing construction engineers. This decision was reviewed in September 2016 and approved. As a result, CGN owns a 33.5% stake in the site.
Bradwell B (financing, building and operating)
- Bradwell B in Essex would be the first nuclear reactor in the UK to employ Chinese nuclear technology. As noted previously, CGN has been explicit about its desire to use the UK as a springboard for exporting Chinese nuclear technology to other countries, with approval by the UK's robust nuclear regulatory regime seen as being key to this.[4] Under a deal agreed in October 2015, CGN will own a 66.5% share in the project to build the new reactors—with EDF owning the remainder.
- While it is assumed that CGN will operate the Bradwell reactors once completed, it has been reported that CGN may be willing to consider "not being the majority operator", due to "political and local sensitivities".[5] In September 2020, the BBC reported Industry and Government sources saying that the CGN plan to build its own reactor at Bradwell
- ↑ Written evidence—JIO, 24 August 2016.
- ↑ 'China's long game to dominate nuclear power relies on the UK', The Guardian, 26 July 2018.
- ↑ Also known as the UK HPR1000.
- ↑ 'China's long game to dominate nuclear power relies on the UK', The Guardian, 26 July 2018.
- ↑ 'Chinese willing to hand over control of UK nuclear plant', Financial Times, 18 September 2018.
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