Maximum pressure? The U.S. and UK have indeed taken action—could a $17-billion Chinese corporate deal collapse? China has issued a clear statement.

Recently, media reports indicated that a £17-billion deal between Chinese enterprises and the UK concerning nuclear power plant construction may fall through! In light of former U.S. Secretary of State Mike Pompeo’s earlier urging for the UK to take a firm stance in the 'battle' over nuclear technology development, netizens remarked that the U.S. and UK have indeed acted—but isn’t this truly the result of Washington’s 'maximum pressure' campaign? If so, how should China respond? For now, China has already issued a clear statement: the UK must provide an open, fair, and non-discriminatory business environment. In September 2016, China General Nuclear Power Group Co., Ltd. (CGN) signed a comprehensive cooperation agreement on new UK nuclear projects with France’s Électricité de France (EDF) and the UK government, covering three major projects: Hinkley Point C, Sizewell C, and Bradwell B. However, recent reports suggest the UK government is attempting to exclude CGN from the £20-billion Sizewell C project and instead inject taxpayer funds as a replacement investment. As early as August 2019, the U.S. had falsely accused CGN and placed it on its 'Entity List.' It is thus unsurprising that the UK has made the choice Washington desired. But is this truly the right decision for the UK? The answer is no. First, in terms of nuclear construction capability, China has already attained world-leading status. For the UK, whether any alternative partner can meet the project’s requirements and overcome technical challenges remains uncertain. After all, although nuclear power plants are often modest in physical scale, their underlying system models and control logic are extremely complex—few countries possess the sustained commitment required to master such intricacies. Second, previous Sino-British cooperation on the Hinkley Point C project proceeded smoothly. Switching to another partner would necessitate renewed coordination and mutual adjustment, further delaying construction. Building a new-generation nuclear power plant is inherently a lengthy process, with every step demanding meticulous attention. The UK undoubtedly hopes for an early return on its investment. Yet at present, terminating cooperation with CGN clearly cannot help achieve this goal.

The UK plans to build the most expensive nuclear power station—Commentary: China’s professional expertise is indispensable.

Many commentators expressed shock at Osborne’s deal. CGN has already become a major player on the global stage. Regardless of EDF’s and the UK government’s potential costs, CGN’s involvement may be critical to the entire project’s feasibility. The UK holds a weak negotiating position, because—without Chinese expertise in constructing nuclear reactor facilities—the Hinkley Point nuclear power station appears impossible to advance. Energy policy expert Tom Burke stated: 'Some believe this reactor is essentially unbuildable. Yet EDF maintains that similar reactors elsewhere in the world are nearing completion, and major progress is being made on Hinkley Point’s infrastructure.' If anyone can tackle the complex engineering challenges involved in building nuclear power plants, China has already emerged as the world leader. (By late March 2017, China had 20 reactors under construction.) One of its core challenges is concrete pouring—reportedly totaling 3 million tons. Concrete is used not only for constructing massive foundations but also for erecting enormous radiation-shielding barriers around the reactor, reducing radiation to levels safe for humans. A well-informed source remarked: 'You might think pouring concrete is simple, but in practice it is highly complex—not something one can do casually. The Chinese excel at concrete pouring.' In July last year, shortly after Theresa May became Prime Minister, her first move was to suspend the Hinkley Point nuclear power station project. At the time, EDF’s board members were preparing to sign the contract—a move that greatly surprised them. Yet this suspension lasted only three months before the Hinkley Point project resumed. While writing this article, many people attempted to explain to me the long-term implications of Hinkley Point C for future generations. Hutton told me: 'This will be something my great-grandchildren might still be dealing with.' Earlier this year, I walked outside the construction site with Allan Jeffery of the Hinkley area, who told me, 'My grandchildren will bear the cost of this.' The government estimates consumers will pay approximately £30 billion over the 35-year contract for Hinkley Point C—among the few figures comparable in magnitude to the Brexit bill. The story of Hinkley Point also echoes—and perhaps warns against—the UK’s Brexit negotiations. Despite Britain’s sharply diminished global standing, the government never seriously scrutinized the terms of this deal. This simply cannot work, because the government has backed itself into a corner. It merely assumed it needed Hinkley Point, while civil servants believed their role was only to fill in the details. Stephen Lovegrove, former Permanent Secretary at the Department of Energy and Climate Change, told MPs in October 2017: 'If we had attempted to scrutinize these terms more closely, I truly believe the likelihood of this deal succeeding would have been negligible.' Lovegrove had participated in investigating Hinkley Point’s financing. He added: 'This deal merely exploited loopholes in existing policy.'

Plan for Multibillion-Pound Sizewell Nuclear Plant Called 'Terrible Deal' for UK Taxpayers by MPs

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UK MPs warn the Sizewell C nuclear plant funding plan poses excessive risk to taxpayers, potentially costing £48bn. Critics argue private investors gain while consumers face higher bills.

theguardian

Plan for Multibillion-Pound Sizewell Nuclear Plant Called 'Terrible Deal' for UK Taxpayers by MPs

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