Hesitation over the Hinkley Point project comes amid wider questions about Beijing’s intentions and actions
It has been a bad couple of weeks for China Inc, with useful international deals coming off the rails and damaging its brand in the process. First, its invitation to the Hinkley Point party was snatched back as Theresa May put plans for the nuclear plant on ice. Her concerns about the security implications of Chinese investment, particularly in critical infrastructure, soon became apparent. Then, on Thursday, came Australia’s announcement that it would block a Chinese state-owned company from leasing a Sydney electricity grid on national security grounds.
Add in the US justice department’s indictment of the state-owned firm investing in Hinkley Point over nuclear espionage – an adviser to China General Nuclear Power is due in court next week, though he denies the charges. The case does not bear directly on the UK plans for a marriage of French technology and Chinese investment, to the commercial advantage of CGN. But it adds to the miasma of suspicion surrounding the behaviour and intentions of the Chinese state and Chinese businesses. That may make a decision to axe the Somerset project look more politically attractive, as No 10 perhaps hopes. It would be the wisest course given doubts about the technology and the immense cost to the UK taxpayer.
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Source: Guardian Environment