Jobaaj Stories
- What's happening between the UK and China Over nuclear energy stakes??
- Is it happening between the UK and China for the first time??
- What the Chinese spokesperson said ??
Stress between The U.K And China.
In the midst of tense relations between the United Kingdom and China. The British government is investigating ways to block China's state-owned nuclear energy company from all future power projects.
China is close to leaving Sizewell C nuclear power station in eastern England, according to the Financial Times. Britain will forcibly sell off China's ownership stake in EDF's Sizewell C nuclear power station.
A formal investment decision is currently pending on the proposed £20 billion ($27 billion, 23 billion euros) plant on the Suffolk coast.
EDF owns 80 percent of the project, while China's state-owned nuclear company CGN holds the rest. The FT reported on Wednesday that the UK government and EDF want CGN to sell or float its 20 percent stake.
In the country, this move could see China's general nuclear power excluded from several projects including a nuclear plant on the surface coast in the east. UK government sources told the financial times that a decision to bar CGN could also impact another planned plant in Essex.
The UK and China's relationship
This comes as the UK and China's relationship remains strained over multiple issues ranging from allegations of Cyber Attacks to human rights violations in Xinjiang and Hong Kong. UK Prime Minister BORIS JOHNSON is under pressure from some within his own conservative party to be tougher on Beijing. This is not the first time that the UK has banned a Chinese company.
London had angered Beijing last year by banning Chinese telecoms group Huawei from getting involved in its 5g network due to spying fears.
Meanwhile, China called on the UK to provide an open, fair and Non-discriminatory environment for Chinese companies.
Foreign ministry spokesperson
Lijian, the foreign ministry spokesperson said.
“China and the UK are important trade and investment partners, and it is in the interest of both sides to carry out practical cooperation on the principle of mutual benefit and win-win cooperation. The British side should effectively provide an open, fair and Non-discriminatory business environment for Chinese Enterprises.”
CGN is already working alongside France's EDF in the construction of a nuclear power plant at Hinkley Point in southwest England. Due to be completed in 2025 the pair is also awaiting formal approval for a new plant on the Sephora coast with CGN being minority partners.
In both the ventures, if Britain decides to block its future involvement, this would impact Britain's nuclear sector since CGN planned investments in the UK totaled billions of pounds and would provide thousands of jobs.
Thanks for Reading!
Shubham Agarwal (CFA L2 Candidate | MBA candidate at University of Cambridge, UK)
Want to discuss this further or have questions regarding finance/strategy? Feel free to connect here - https://www.linkedin.com/in/shubhamagarwal13/
