Perception that China is not to be trusted is hampering its nuclear marketing ambitions

Going Out’ to Hinkley Point? China’s Uncertain Future in International Energy China’s ambition to become a global energy power will have to overcome geopolitical hurdles, The Diplomat By Mykael Goodsell-SooTho August 18, 2016 “…….Recently, China has faced a number of setbacks which demonstrate several countries’ apprehension at the prospect of Chinese involvement in their energy infrastructure. Last week, the Australian government threw a wrench into the plans of China’s State Grid Corporation and Hong Kong’s Cheung Kong Infrastructure Holdings by preliminarily barring their bids for a controlling stake in Ausgrid, the country’s largest electricity network. This came just weeks after a similar decision by the U.K. government to postpone approval of the Hinkley Point C nuclear reactor project pending a comprehensive review of the plans. In both instances, officials have cited security concerns surrounding Chinese involvement in British and Australian energy infrastructure as primary reasons for the countries’ hesitance to conclude the deals. Whether or not these worries are well-founded, they constitute a significant obstacle to Chinese energy companies’ international ambitions.

While some critics of the Hinkley project—including Nick Timothy, Prime Minister Theresa May’s joint chief of staff—have argued that CGN’s involvement could allow the Chinese to shut down the U.K. power grid at will, others believe that the risks of Chinese participation in Hinkley could be less nefarious, but equally consequential. Such critics argue that, even in the absence of the James Bond-esque tactics touted by Timothy, dependence on China for the financial and technological resources necessary to run the U.K.’s nuclear power program would give China a great deal of control over a vital component of the country’s future. Moreover, quality concerns surrounding “Made in China” products certainly extend to nuclear reactors, and the fact remains that China has not yet established itself as a trustworthy exporter of nuclear-related goods and services. In light of these facts, the May administration has taken a much more cautious approach to the Hinkley project than its predecessor…….

The Chinese ambassador’s call to action highlights the importance of the project in the eyes of the Chinese. It suggests that China’s stake in Hinkley Point and other international energy projects extends beyond the associated financial costs and benefits. If approved, Hinkley Point will be the largest and most expensive nuclear construction venture in the world, and having CGN’s name attached the project would be a major step in establishing China’s credibility in international energy development……..China will face difficulty in further developing its presence in the energy markets outside its borders as long as its motivations for doing so continue to be perceived as dubious.http://thediplomat.com/2016/08/going-out-to-hinkley-point-chinas-uncertain-future-in-international-energy/

August 19, 2016 - Posted by Christina Macpherson | China, marketing of nuclear, politics international

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