The UK chancellor has announced that the government is to give the go ahead to Chinese companies that wish to take a stake - including potential future majority stakes - in the development of the next generation of British nuclear power.
George Osborne made the announcement at Taishan nuclear power station in Southern China on the final day of his visit to the country. Taishan is a collaboration between French energy company EDF and the China General Nuclear Power Company.
While any initial Chinese stake in a nuclear power project in the UK is likely to be a minority position, it could be that participation in subsequent new power stations could be majority stakes. Any investment from any country has to comply with rigorous regulatory standards for safety and security, and there are clear implications for national energy security.
Today's announcement follows the signing this week in Beijing of a new Memorandum of Understanding on civil nuclear collaboration witnessed by the Chancellor and his Chinese counterpart, Ma Kai. The memorandum sets the strategic framework for collaboration on investment, technology, construction and expertise. Today's announcement is the first step by UK government arising from this MOU. The memorandum was signed as part of the Economic and Financial Dialogue (EFD) between the two countries, and forms the centrepiece of the Chancellor's visit.
As well as supporting Chinese investment in Britain, the memorandum will make sure that British companies such as Rolls Royce, International Nuclear Services (INS) and engineering companies like Mott MacDonald can be part of China's multi billion pound new nuclear programme. As part of this, the Chancellor has announced that the UK based International Nuclear Service has signed a Memorandum of Understanding with the Chinese Nuclear Power Engineering Company Ltd this week, to share UK experience on radioactive waste management, and will start with some initial training activities for Chinese technicians in the UK later in October.
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