British-Chinese relations at 'crucial historical juncture' over Hinkley Point

The relationship between the UK and China was at a “crucial historical juncture” over the development of the Hinkley Point nuclear power plant, Beijing´s top diplomat in the UK said.

China’s ambassador to the UK, Liu Xiaoming, wrote in the Financial Times that there was a link between the government’s decision to delay going ahead with the nuclear reactor and the future of bilateral ties between the two nations.

Contracts were to be signed in July to go ahead with the Hinkley Point C nuclear power plant, but were put on hold by Theresa May as she had concerns regarding security and wanted more time to asses the plans.

The £18bn Hinkley Point was being built by French state energy provider EDF and a Chinese consortium was providing about £16bn for the energy project which upon completion was expected to provide for about 7% of the country’s energy needs.

Liu said: “Hinkley Point is not the result of some whimsical idea or rushed decision. It is the considered outcome of a mutually beneficial tripartite partnership between Britain, France and China.”

The decision by May to delay developments has thrown the “golden-era” of ties with China into doubt. When president Xi Jinping visited the UK last year it was part of former prime minister David Cameron and former chancellor George Osborne’s plans to forge closer bilateral ties with the two nations. Nearly £40bn worth of investment deals were made with China during the state visit.

Liu said in his article that Chinese companies had invested more in the UK over the past five years than in Germany, France and Italy combined.

“Britain takes pride in being a country that is open to foreign investors. Rightly so. It is exactly because of such openness that China has become the UK’s second-largest non-European trading partner. Britain is one of the key destinations for Chinese companies seeking to invest overseas.”

Liu said he hoped the British government would come to a swift decision on Hinkley Point but mutual trust was needed.

“If Britain’s openness is a condition for bilateral co-operation, then mutual trust is the very foundation on which this is built […] I hope the UK will keep its door open to China and that the British government will continue to support Hinkley Point.”