Beijing’s increased involvement in Britain’s push for more nuclear power plants and high-speed rail was put on track on September 21 when the countries agreed to synergise their strategic plans.
China and Britain signed 53 agreements at the seventh China-UK Economic and Financial Dialogue including on nuclear energy, infrastructure, trade, fi nance and space programs.
The meeting came amid preparations for President Xi Jinping’s state visit in October.
George Osborne, who was leading a large British delegation to Beijing, said a £1.9-billion guarantee to underwrite Chinese fi nancing of the Hinkley Point nuclear power station would pave the way for further deals, which could result in majority Chinese ownership of the plant at Bradwell-on-Sea in Essex.
It’s good for Britain because it provides secure, low-carbon electricity going forward...
In addition, the countries agreed to encourage more businesses and fi nancial institutions to take part in Britain’s plans for high-speed rail, especially London’s “Northern Powerhouse” strategy to revitalise areas in north England according to the Chinese government.
The joint development of the next generation in nuclear power plants would benefit both countries, the Chancellor said.
“It’s good for Britain because it provides secure, low-carbon electricity going forward... It’s good for China as well, for Chinese nuclear companies to invest for the first time in a major Western project,” he said.
He added that China was also “most experienced in building high-speed (railways) and we want to make sure that Chinese companies can bid into the contracts” such as for the HS2 project, which is intended to connect London to northern regions.
Chinese Vice-Premier Ma Kai said at the Beijing meeting that China’s Belt and Road Initiative and London’s Northern Powerhouse strategies were complementary as well as key components to improving north England.
The possibility of an alliance to further enhance co-operation on infrastructure projects in China, Britain and other markets would be discussed as the two governments seek synergy, he added.
It is a great example for international collaboration on the infrastructure of the future
Andrew Shepherd, senior power and renewables analyst at BMI Research, said the guarantee was a signal that Britain was still committed to nuclear energy and would give confi dence to French and Chinese investors.
“For a large project like Hinkley, to have a guarantee for some of the early-stage investment is helpful for investors as it reduces the level of risk they have to bear,” he said.
Premier Li Keqiang, who also met the Chancellor in Beijing, said the co-ordination of macroeconomic policies and financial co-operation between China and Britain, two major powers with global infl uence, would contribute to the stability of the global financial market.
The British business and culture delegation’s extensive China trip also took in Shanghai, Chengdu in the southwest and Urumqi in the northwest. Mr Osborne said he hoped Britain could be China’s “best partner in the West” and that the two countries would share a “golden decade” together.
“It is a great example for international collaboration on the infrastructure of the future,” he added. The countries also agreed to a feasibility study on a link up between the London and Shanghai stock exchanges.
