Chinese ambassador warns relations with UK at crossroads

Writing in today’s FT, he also said he hoped the United Kingdom government would “continue to support Hinkley Point – and come to a decision as soon as possible so that the project can proceed smoothly”.

In an article in the Financial Times (paywall), Liu Xiaoming, China’s ambassador to the United Kingdom, urged the British government to continue to support the US$24bn deal and make a decision as soon as possible.

China has ratcheted up the pressure on the Government over the Hinkley nuclear deal, warning its relationship with the United Kingdom is at a “crucial historical juncture”.

Prime Minister Theresa May stalled the deal earlier this year in order to review the project financed by a Chinese nuclear power provider and French energy giant EDF.

The delay threw into doubt the “golden era” of ties proclaimed by Chinese President Xi Jinping during a visit to Britain previous year.

In a statement similar to Liu’s comment, state-owned news agency Xinhua reported last week that the new British government’s “suspicion towards Chinese investment. risked dampening the hard-won mutual trust with China”.

Liu Xiaoming, writing in the Financial Times, pointed to China’s record of 30 years of safe operation of nuclear facilities.

Chinese state media reacted to the delay by saying it “adds uncertainties to the “Golden Era” of China-UK ties”.

“The expected news that the Hinkley Point, Somerset nuclear plant is set for final approval by the British government is unwelcome and adds another danger to people living in Ireland”. He warned that involvement by Chinese partners in the project could allow them to shut the UK’s electricity production at will.

The project had been approved by Electricite de France SA, the French utility leading the project, at a board meeting last month, but the United Kingdom government said that it needed more time to think, delaying the final investment decision until September.

It emerged last week that EDF chairman and chief executive Jean-Bernard Lévy sent a letter to top executives this month admitting he knew the United Kingdom government would postpone a final decision, but understood this would be only by “a few days”.

A final decision on Hinkley is due in September. He urged the British government to decide as soon as possible to proceed with Hinkley Point. Officially, the Chinese government has only said it hoped for a speedy resolution of the issue. “There was therefore no requirement to communicate its postponement”.