China's nuclear exports will target developing world

Subject

The outlook for China's efforts to export nuclear energy technology.

Significance

The UK government's decision this month to approve the construction of a nuclear power plant at Hinkley Point in south-west England is seen as a breakthrough for the export ambitions of China's nuclear power companies, one of which is to take a one-third stake in the project.

Impacts

• With many advanced economies spurning nuclear energy, China is in a strong position to help developing countries boost their capacity.
• State support will give Chinese firms advantages over other exporters, including Russian and South Korean state-owned firms.
• This advantage is likely to be sustained regardless of any setbacks Chinese firms face in advanced countries.
• The UK government's review of the Hinkley C project suggests greater scrutiny of Chinese involvement in future infrastructure projects.