UK decision shows cracks in govt, or does it?

 

May is known in the government as being more cautious than her predecessor, David Cameron, and wanted time to personally evaluate what is, after all, a controversial project. May is also known to be concerned about the rising cost of the project－in 2005 it was put at ￡9 billion.

Another factor to be considered is that the Hinkley Point C project will be completed using only EDF technology and China's input is only financial, so the security question does not really apply.

China was reportedly alerted to the UK government's review plan ahead of the French, which probably explains the understanding tone of the reactions of both the CGN and the Chinese Foreign Ministry.

Perhaps all this point to a mishandling of the situation by Downing Street－Chancellor of the Exchequer Philip Hammond was in China when the announcement was made, and had already talked positively about the future of Sino-British ties, especially the chances of securing a free trade agreement with China after Britain negotiates its departure from the European Union.

Hammond was not aware of the decision to review the project and British Foreign Secretary Boris Johnson, too, was kept out of the loop. Besides, Energy Secretary Greg Clark only came to know of the announcement he was due to make on Thursday, just a few hours after returning from a visit to Japan.

For China, involvement in the project and subsequent nuclear power stations is seen as boosting the international standards of its own nuclear plants if they pass exacting UK standards, and thus their marketability. British media reports say CGN has a tentative "plan B" if the current Hinkley Point C project fails to go ahead. That would involve building two smaller Chinese-designed reactors on the site, but a whole new agreement would have to be negotiated.

But little has been said about that.

The author is managing editor of China Daily UK. chris@mail.chinadailyuk.com