US and Japan in talks to ensure Westinghouse technology will not fall into Chinese hands

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A sign marks the entrance to Westinghouse's global sites and world headquarters in Cranberry, Pennsylvania. Japan's embattled Toshiba Corp. says its US nuclear unit Westinghouse Electric Co. has filed for bankruptcy protection, forcing Tokyo and Washington to consider steps so its technology does not fall into Chinese hands. Photo: AP

Published: 7:26am, 7 Apr 2017

The Trump administration and the Japanese government are in discussions to ensure that the bankruptcy of Toshiba’s US unit Westinghouse Electric Co does not lead to US technology secrets and infrastructure falling into Chinese hands, a US official said on Thursday.

Westinghouse filed for bankruptcy last month hit by billions of dollars of cost overruns at four nuclear reactors under construction in the US Southeast.

The bankruptcy is likely to lead to the eventual sale of Westinghouse’s nuclear business and Chinese interests have been seen as possible buyers, given the chance.

“It’s is a real concern; they’ve wanted to get their hands on power grid and nuclear infrastructure for a long time,” an official in the US administration said as China’s President Xi Jinping arrived in the United States on Thursday for a first summit with President Donald Trump.

“You go into a situation like the Toshiba situation where there’s financial chaos. There’s a chance that things can happen in a way that’s dangerous.”

The Indian Point nuclear power plant in Buchanan, New York, a site operating two Westinghouse PWR units and one shutdown unit. Toshiba's nuclear unit Westinghouse Electric Company has filed for bankruptcy protection. Photo: AFP