China wins stake in British nuclear power and high-speed rail
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Version 0 of 1. China has been given the chance to take a decisive stake in the next stage of Britain's energy and transport infrastructure as Chinese companies won the right to own and operate a nuclear power station and to help build high-speed rail lines. The agreements were among trade deals worth £14bn agreed with Beijing during the visit of the Chinese premier Li Keqiang, which prompted David Cameron to declare Britain is playing a part in the rise of China – which he called a defining event of the 21st century. The two most controversial aspects of the deals will allow Chinese firms to own and operate a Chinese-designed nuclear power station and to build and operate rail lines in Britain. The Chinese have a mixed safety record on high-speed rail. The prime minister said: "Ours is truly a partnership for growth, reform and innovation. Our partnership goes well beyond the economic field. The UK recognises that the rise of China is one of the defining events of our century. "We welcome the fact that China's economic growth is lifting millions out of poverty. As premier Li noted yesterday, as China grows in economic power that brings greater responsibilities on the world stage." The government moved to stem criticism of co-operation in the highly sensitive area of civil nuclear power by saying it is part of an overall agreement to tackle climate change. China and Britain also signed a joint statement on climate change. In a Guardian article, the energy and climate change secretary Ed Davey writes: "Given the boost to low carbon electricity, to energy security and to jobs, the Chinese interest in taking forward investment at Hinkley Point C – the UK's first nuclear station in a generation – is hugely welcome. "But equally important is that both China and the UK recognise that climate change is one of the greatest global challenges we face, and for the first time ever, the UK and China have released a joint statement, committing our governments to work even more closely together on a response to climate change. "It's important because it is only the second time China has done this. The only other country with which China has agreed a statement on climate change is the US. This statement reflects the strength of our cooperation with China on climate change and low carbon." In a joint statement about high-speed rail, the two governments said: "Both sides agree to promote substantive cooperation between the UK-China on rail, including high-speed rail in areas including design, engineering, construction, supply operation and maintenance on projects in China and the UK." There were also major deals in energy. An £11.8bn BP gas supply contract was one of a series of deals unveiled by major UK firms during Li's visit. The deal will provide state-owned China National Offshore Oil Corporation (CNOOC) with liquefied natural gas (LNG) for 20 years. Meanwhile, Royal Dutch Shell extended an agreement with CNOOC to work on energy projects around the world, including LNG. The deals were signed at talks in Downing Streeti. Shell chief executive Ben van Beurden said the partnership with CNOOC has been fruitful so far and the firms were "committed to growing the business together". Meanwhile, engineering company Rolls-Royce signed a memorandum of understanding with Chinese nuclear reactor manufacturer SNPTC to cooperate on civil nuclear power projects in the UK and other markets. The UK-based firm currently supplies emergency diesel generators to almost 40% of all nuclear reactors in China that are in operation or under construction and more than 70% of the safety-critical equipment. Jason Smith, Rolls-Royce's president of nuclear, said: "China represents one of the world's largest civil nuclear markets in which Rolls-Royce has been supplying safety-critical technology solutions for 20 years." The company employs 55,000 staff in 45 countries, including almost 2,000 in China. The London Stock Exchange also signed agreements with the Bank of China and the Agricultural Bank of China to strengthen the Chinese renminbi offshore market in the UK and to provide access to cash for Chinese companies. LSE chairman Chris Gibson Smith said: "London is the world's most international financial market and a natural partner to China in its ambitious global development." In a personal touch, Cameron gave Li a copy of the shooting script for the first episode of Downton Abbey signed by the show's creator. Li had expressed interest in visiting Highclere Castle where the drama is shot. Cameron also gave Li a special £10 lunar gold coin – made by the Royal Mint and designed by the artist Wuon-Gean Ho – celebrating the Chinese year of the horse. |