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The national flags of China and the United Kingdom are flown at the Shanghai World Expo Park on May 31, 2010. [Photo/IC]
Rishi Sunak, the UK Prime Minister, is going in a direction where concern for geopolitics takes precedence when he says that the “golden era” of UK-China ties is over. In other words, he apparently allowed the Cold War mentality to dictate economic relations with China.
Monday’s announcement that the UK government will invest 700 million pounds ($839 million) for a 50 percent stake in the nuclear power plant, known as Sizewell C, means Chinese investment in the project will be squeezed out as the other 50 percent comes from EDF , a French state-owned company, which will build the factory.
There are a number of nuclear infrastructure projects in the UK, with France, China and the UK cooperating on a mutually beneficial basis, as well as building safe and advanced nuclear stations to satisfy Britain’s thirst for power and reduce its reliance on gas.
The UK government is reported to be paying Chinese state power group China General Nuclear over £100m to exit the £20bn Sizewell C nuclear power project.
If the Chinese parties are forced to withdraw from all nuclear projects in the UK, the money the British government has to pay for breaching the contract will be huge. In addition to the money it will have to raise to cover the gap left by the exit of the Chinese parties, the UK government is making things unnecessarily difficult for itself.
Moreover, by unilaterally breaking the treaties it signed with China, the UK government is not only politicizing economic affairs but also sabotaging its own reputation.
By separating itself from China in terms of economic cooperation, the UK is setting a poor example of respecting norms in international relations and doing a disservice to maintaining healthy global industries and supply chains.
Hostilities between Russia and Ukraine have caused a fundamental rethinking in European countries about energy infrastructure controlled by foreign countries. But the UK’s move is not about protecting its energy infrastructure and strengthening its energy security. Instead, he is using it as a justification to politicize and essentially weaponize the energy deal.
Chinese leaders have repeatedly reiterated its peaceful rise, and that economic cooperation with all countries is based on equality and mutual benefit.
Those countries, which choose to unilaterally separate economically and politically from China just because they still have a Cold War mentality and politicize economic affairs, will only be shooting themselves in the foot.
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