🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

May to review security risks of Chinese-funded nuclear deal

Published 04/09/2016, 12:07
© Reuters. British Prime Minister Theresa May attends the opening ceremony of the G20 Summit in Hangzhou
EDF
-

By William James

HANGZHOU, China (Reuters) - British Prime Minister Theresa May said on Sunday she wanted her security advisers to help review a delayed nuclear power investment from China - a source of diplomatic tension - as she arrived for a G20 summit.

May upset Chinese officials in July by delaying a $24 billion project that would see French firm EDF (PA:EDF) build Britain's first new nuclear power plant in decades with the help of $8 billion from China.

Speaking during her first visit to China, May was asked whether she would ask the National Security Council, a team of ministers supported by intelligence officers, to look at the potential security implications of the Hinkley deal.

"I will be doing exactly as you’ve said which is -- as you know, I’ll be looking at all the evidence around this issue," May replied.

Although there is not expected to be a formal review process by the NSC specifically on Hinkley, the comment marked the first official acknowledgement that national security advice would be a factor in her decision.

The initial delay caught investors by surprise and has cast doubt over whether May, who took office in July following Britain's vote to leave the European Union, will continue to court China as a major source of infrastructure investment.

"This is the way I operate," May earlier told reporters en route to the summit, which will include a one-to-one with Chinese President Xi Jinping.

"I look at the evidence, ...take the advice and consider that and come to my decision."

A final decision is expected later this month, May said.

May, a former interior minister, is wary of the risks of allowing China to invest in nuclear projects, according to a former cabinet colleague. The EDF deal is viewed as a precursor to Chinese involvement in another two nuclear plants.

Asked whether she trusted China, May said: "Of course wehave a relationship with them... What I want to do is build on that relationship."

She also stressed a need to broaden the group ofnations that Britain can trade with and tap for cash to help reinvigorate its power, transport and technology infrastructure.

© Reuters. British Prime Minister Theresa May attends the opening ceremony of the G20 Summit in Hangzhou

"This is the G20, this is about talking to a number of worldleaders. I'm going to give the message that Britain is very muchopen for business... I want to be talking about theopportunities for free trade around the world."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.