The ‘crucial historical juncture’ for UK-China relations

LONDON (AA) – Britons reacted with delight at the beginning of this week as their country continued a stellar run at the Rio de Janeiro Olympics by moving into second place in the overall medal table.

By leapfrogging China, the team was staging the best performance of any British team competing at an Olympic Games on foreign soil.

But triumph in sport does not suggest British pre-eminence in other fields.

Beijing’s economy dwarfs that of Britain, and the U.K. government has spent the last month concertedly rebuilding diplomatic ties to avoid deterring further investment.

Future Chinese ventures in the U.K. were put into doubt following a British decision last month to delay a nuclear power station partly funded by China.

‘Crucial historical juncture’

Earlier in August, China warned ties between the two countries were at a “crucial historical juncture”. It prompted Britain’s new prime minister to assure Beijing she was committed to improving relations.

The 18-billion-pound ($23.5 billion) project at Hinkley Point in western England was to be built by French energy company EDF (Electricite de France), with the Chinese state-owned China General Nuclear Power taking a one-third stake.

It was granted a nuclear site license four years ago and backed by former U.K. Prime Minister David Cameron.

His finance minister, George Osborne, made a high-profile visit to Beijing in September 2015 to urge stronger ties between Britain and China.

“My message on this trip is that Britain can’t run away from China. Quite the opposite, Britain should run towards China,” Osborne said at the time.

‘Desperate desire for Chinese trade’

But in late July, just three weeks after taking office, Cameron’s successor Theresa May took the surprise decision to delay the final approval of Hinkley Point power station and launch a further review of it.

The British press speculated the decision was taken because of security concerns over allowing China to invest in crucial national infrastructure.

They cited the views of Nick Timothy, one of May’s key advisers, who had previously criticized the Cameron government’s enthusiasm to embrace China.

He wrote on the Conservative Home website last year that Britain was making compromises between financial interests and the safety and security of its citizens.

“Rational concerns about national security are being swept to one side because of the desperate desire for Chinese trade and investment,” Timothy wrote.

UK-China ties at ‘crucial historical juncture’

Britain is increasingly energy-hungry and in search of new sources of electricity as it closes its older power plants that burn polluting fossil fuels like coal and gas.

EDF says Hinkley Point is designed to meet 7 percent of the country’s electricity demand, making it a prosperous opportunity for Chinese investment.

Liu Xiaoming, the Chinese ambassador to London, said the project was at the center of Britain’s trade relationship with China.

He wrote in the Financial Times on Aug. 8: “If Britain’s openness is a condition for bilateral co-operation, then mutual trust is the very foundation on which this is built.

“Right now, the China-UK relationship is at a crucial historical juncture. Mutual trust should be treasured even more.

“I hope the UK will keep its door open to China and that the British government will continue to support Hinkley Point -- and come to a decision as soon as possible so that the project can proceed smoothly.”

Alternative options

Supporters argue the U.K. government’s review of Hinkley Point will be an opportunity to look into different options made available by advances in technology, including renewable sources to generate electricity or even constructing vast batteries to store it during periods of low demand.

But that has not stopped Theresa May from trying to make amends with Beijing.

Alok Sharma, a junior U.K. Foreign Office minister, was this week entrusted with a private letter from May, which he delivered to Chinese President Xi Jinping.

In the letter, the prime minister said she was looking forward to visiting China for next month’s G20 summit and to “strengthening co-operation with China on trade and business and on global issues,” the Times reported.

The newspaper described it as an attempt to reassure the Chinese of May’s commitment to their ties, but added that her office had refused to publish the letter in full.