Just a few months ago a select committee of the House of Commons chastised the last government for letting a Chinese company supply some of the UK’s critical national infrastructure. The report deemed it remiss of ministers not to have scrutinised more closely the terms by which Huawei supplied components to Britain’s main broadband network. While producing no evidence of abuse, it warned that the “commercial imperative” of cutting costs should not trump national security. The relationship between Chinese companies and Beijing is, after all, often blurred – whether by ownership or corporate dependence on cheap state-sanctioned credit. And China – while a key trading partner – is not a British ally.
A similar balancing act now confronts ministers seeking investors to back Britain’s nuclear programme. Because of its financial frailty, the principal bidder, the French operator EDF, needs partners for its plans to build new reactors in the UK. A state-owned Chinese entity, China General Nuclear Power Group, has emerged as a possible co-investor.
Electricity networks are central to the functioning of a modern economy. The risks inherent in nuclear generation only add to the sensitivity. While few would object to CGN as a minority backer, the company envisages some larger role. It would like a degree of “operational control” over some of the new reactors. These might end up using Chinese technology and being managed by CGN.