Chinese nuclear firms talk to avoid conflict on overseas construction deals
Companies such as China General Nuclear Power seek to strike up understanding when chasing projects outside their domestic market
Top management at developers of China’s state-owned nuclear power projects communicate regularly and share “implicit understanding” to avoid crossing swords over the same overseas opportunities, a senior industry official said.
Beijing doesn’t dictate, Zheng Dongshan, vice president of Shenzhen-based China General Nuclear Power (CGN), said. The company operates China’s largest fleet of nuclear reactors and its pipeline of new projects is the world’s largest.
“The central government may give guidance but it does not allocate markets to the firms,” he told reporters in a recent site visit to CGN’s projects in Shenzhen and the Guangxi Zhuang autonomous region. “The firms’ top management have regular communications among themselves on their market development work.”
That creates an “implicit understanding” and avoid duplication of work, he said.
“It is unhealthy for two firms to be selling the same product to the same market,” Zheng said.
Rivalry among China’s state-backed energy firms in overseas expansion has necessitated coordination by Beijing, one case being the 2005 acquisition of Central Asian oil and gas assets, where industry leader PetroChina bid against rival Sinopec.