Golden Ties at Crucial Juncture Over Nuclear Delay

By Guy Faulconbridge and Kylie MacLellan

LONDON – China has issued a warning to Britain, urging the country not to turn away from Chinese investment as relations reach a critical point following Prime Minister Theresa May’s postponement of a $24 billion nuclear power project.

In a strong statement in response to May’s unexpected decision to reassess the construction of the UK’s first nuclear plant in decades, Beijing’s ambassador to London warned that the country could face power shortages if the Franco-Chinese deal is not approved.

"The China-UK relationship is at a crucial historical juncture. Mutual trust should be precious," Liu Xiaoming stated in a recent op-ed. "I hope the UK will keep its doors open to China and that the British government will support the Hinkley Point project, making a decision promptly to allow for smooth progress."

Liu’s comments reflect Beijing’s growing frustration over May’s delay, which marks her most significant corporate intervention since taking office amid the political fallout from Britain’s referendum to leave the European Union. This decision suggests a more cautious approach to Chinese investment and an intent to adopt a firmer stance with key European allies, such as French President Francois Hollande.

The Hinkley financing deal, seen as a symbol of a new "Golden Era" in China-Britain relations, was established during a state visit by President Xi Jinping last year. The plan involved French utility EDF and China General Nuclear Power Corp jointly funding the construction of two European Pressurized Water Reactors at the Hinkley C site in Somerset.

Under the arrangement, Britain has agreed to a guaranteed price for the electricity produced by the plant for a period of 35 years, a move critics say imposes a significant financial burden on the country. Hinkley is viewed as a potential starting point for deeper collaboration between the UK and China on nuclear energy, potentially unlocking billions of dollars in further investment and additional nuclear projects.

Former Prime Minister David Cameron had promoted Britain as the leading gateway for Chinese investment into the West while transforming London into a major international trading hub. Currently, discussions are underway for a landmark financial services agreement, including a potential London-Shanghai stock link.

In his recent commentary, Liu emphasized that the Hinkley project was not a mere "whimsical idea" and stated that Chinese investment flowed from mutual respect and trust. He added, "If Britain’s openness is a condition for bilateral cooperation, then mutual trust is the very foundation."

As the UK prepares to leave the EU, securing a new trade agreement with China—whose economy vastly outpaces Britain’s—will be essential. Liu noted that Chinese companies have invested more in the UK over the past five years than in Germany, France, and Italy combined.

Since May’s appointment, the UK government has reiterated its commitment to maintaining strong ties with China while acknowledging the need for careful scrutiny of investment plans. A government representative stated, "This decision is about a significant infrastructure project, and it’s important for the new government to assess it thoroughly."

However, concerns have been raised regarding national security, particularly related to potential access by state-owned Chinese firms to critical energy infrastructure. Nick Timothy, one of May’s top aides, previously expressed alarm over the implications of allowing such access, arguing that economic interests should not compromise national security.

A final decision regarding the Hinkley project is anticipated in September.