China to invest in UK nuclear power plants

Chancellor George Osborne announced that the UK will allow Chinese companies to take a stake in British nuclear power plants. According to BBC, the decision could lead to China taking a future majority stake in the development of the next generation of British nuclear power.

BBC also reports that the first China deal could be as early as next week, with the go ahead for a new £14bn plant at the Hinkley C site.

Osborne said the nuclear deal with China demonstrated both the openness of the British market and would act as a boon to the taxpayer.

"Today is another demonstration of the next big step in the relationship between Britain and China - the world's oldest civil nuclear power and the world's fastest growing civil nuclear power," Osborne said.

"It is an important potential part of the government's plan for developing the next generation of nuclear power in Britain. It means the potential of more investment and jobs in Britain, and lower long-term energy costs for consumers."

The memorandum of understanding was signed in Beijing. China and UK agreed to help each other with their civil nuclear programmes. It will see British companies allowed to sell their expertise in China and, according to The Telegraph, they will pursue joint ventures in third countries.