LONDON”•Britain’s decision to delay final approval for the Hinkley Point nuclear power plant risks cooling relations with economic powerhouse China under new prime minister Theresa May, analysts say.
May’s predecessor David Cameron, who quit after the June referendum vote to leave the European Union, made strong ties with Beijing central to his economic policy.
During a state visit last year, Britain rolled out the red carpet for Chinese President Xi Jinping as it sought to attract investment to its austerity-hit economy.
Cameron said Britain would be China’s “best partner in the West” as they signed $40 billion (47 billion euros, $53 billion) of deals, including Beijing taking a $6 billion stake in Hinkley Point, Britain’s first new nuclear plant in a generation.
A ceremony to sign the $18 billion Hinkley Point deal was planned for July 29, the day after the other player in the deal, French energy giant EDF, finally approved the project which had deeply divided its top management as critics fear it could bankrupt the French utility.
However, the French government, which owns 85 percent of EDF, has been doggedly determined to get Hinkley Point approved as it sees the project as crucial for the long-term viability of France’s nuclear industry.
But Britain’s new leader May, who took power on July 13, had already decided to delay the final decision on the project, which is now expected in September.
