China agrees one-third stake in British nuclear project
Country takes one-third stake in project, as UK business secretary promises agreements worth tens of billions of pounds during Xi's visit
China has agreed to take a one-third stake in French power giant EDF's £25 billion (HK$300 billion) next-generation nuclear project at Hinkley Point in Britain, French business daily Les Echos said yesterday.
The deal came as President Xi Jinping embarked on a state visit to Britain to build closer business ties.
British business secretary Sajid Javid said Britain would announce tens of billions of pounds worth of business deals during this week's visit by Xi.
"Alongside the Chinese visit this week we will also have an announcement of over £20 billion of business deals that will support jobs throughout the country," he told parliament.
The development came as a cut of 1,200 jobs at Tata Steel, announced on Monday, prompted an urgent parliamentary session. The company blamed the lay offs on a "flood of cheap imports, particularly from China", along with high electricity costs and the strong pound.
The British government is under pressure to raise the issue of China selling steel at a loss on world markets. Opposition lawmaker Kevin Brennan questioned how the British government could secure the future of its steel industry in the face of China selling steel at a loss on world markets.
Tata's decision comes only weeks after Sahaviriya Steel Industries announced the closure of its plant in Redcar, costing 2,200 jobs. Another firm, Caparo Industries, went into partial administration on Monday, threatening hundreds more jobs.