China’s cabinet approves two new nuclear power plants in push to boost economy, cut pollution
- After three nuclear plants were approved in June 2019, government approvals had ground to a halt until this week
- The pandemic, mounting tensions with the United States and a determination to cut reliance on fossil fuels have provided new impetuses for China to approve more nuclear reactors
China has given the green light to the construction of two new nuclear plants after granting no new approvals for more than a year, as the country continues to follow its old playbook of increasing infrastructure investment to boost the economy and employment, while improving future energy security amid escalating geopolitical tensions.
The State Council, China’s cabinet chaired by Premier Li Keqiang, also stressed at its meeting on Wednesday that it would maintain a flexible monetary policy stance to support the coronavirus-hit economy, amid questions about whether the central government will roll back its stimulus measures after a stronger-than-expected economic rebound in the second quarter and during the first part of the third.
The cabinet approved the two nuclear power projects in the coastal provinces of Hainan and Zhejiang, at an expected cost of 70 billion yuan (US$10.24 billion). The one in Hainan is expected to be finished by 2026, and Zhejiang’s is expected to be finished by 2025.
“Pushing forward the construction of nuclear power projects actively and steadily is an important measure to expand effective investment, enhance energy support and reduce greenhouse gas emissions,” the cabinet said in an official statement after the meeting.
In addition, the projects “will create a large number of jobs”, the statement added. Maintaining stability has been the government’s top priority this year, given the damage done by Covid-19.