International alliances

Forming alliances and strategic partnerships with major global nuclear players has proved to be a successful way for Chinese nuclear enterprises to gain a foothold in the international nuclear market.

France is one of the countries that has a long-standing relationship and cooperation with China in nuclear technology and power plant development. This year also marked the 30th anniversary of the China-France nuclear partnership.

In 2007, French nuclear group Areva SA and CGNPC signed a nuclear agreement of 8 billion euros, the largest deal in the history of China's nuclear development. The two companies also set up a joint venture in 2008 and are jointly bidding for overseas projects using an existing cooperation model in the Chinese market.

"China has chosen third-generation technology for its new power plants in the domestic market. In the years to come, China will be a main actor in the nuclear power development worldwide," says Jerome Rosso, Areva's press officer.

"It's a win-win partnership. If China selects the French technology and shares the construction experience, we will be able to make some joint offers or bids in other countries that plan to develop the nuclear power," says Bernard Bigot, chairman of the French Alternative Energies and Atomic Energy Commission.

The global nuclear strategy partnership between China and France will continue to strengthen under the government of French President Hollande although he has vowed to cut the share of nuclear power to 50 percent in France's total energy mix, Bigot says.

"France is wishing to go on with nuclear energy with good industry capacity," he says. "China can benefit from France's long experience with nuclear plants that have been built, operated and maintained in a very safe way and in a way accepted by public opinion."

Industry experts have also called on China and France to jointly establish the international governance on nuclear safety under the G20 framework.

"China and France are in a legitimate position to promote this kind of governance, which is crucial to make nuclear energy more acceptable to the public in countries where it already exists and in countries that are newcomers to the sector," WEC chairman Gadonneix says.

Potential challenges

Bernard Bigot, chairman of the French Alternative Energies and Atomic Energy Commission, says cooperation between China and France in nuclear power will be a win-win partnership. Provided to China Daily

Charles-Emmanuel Chosson, an energy expert at Ernst & Young in France, says China's fast-growing market will enable it to develop its own technology. Provided to China Daily

Like in every other overseas deal involving large State-backed Chinese corporations, the Western fear of national security and technology theft is often cited as a major obstacle for Chinese companies planning investments in overseas nuclear projects.

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In the case of the UK Horizon deal, British officials were believed to have pressed for limiting the stake of Chinese investors in the deal due to the sensitivity of the nuclear sector.

British energy experts also fear that Chinese involvement in the project will allow China access to the UK electricity grid and nuclear technology, which it feels might threaten its energy security.

Although the exact reason for Chinese companies staying away from the Horizon project still remains unclear, some analysts say that UK's energy security concerns might have blocked China's involvement.

"We want to maintain a low profile and do not want any unnecessary exposure in the international market as nuclear development remains a sensitive topic especially after the Fukushima crisis," a Chinese employee at the French office of CGNPC says.

Another major hurdle for Chinese nuclear enterprises vying for bids in foreign nuclear markets is the international acceptance of Chinese technology, industry experts say.