China warns Hinkley Point C delay threatens trade with UK

China has warned its deepening business ties with the UK have been put at risk by Theresa May’s unexpected decision to review the £18bn Hinkley Point C nuclear plant scheme in Somerset.

The Chinese ambassador to the UK Liu Xiaoming has said his country’s relations with the UK are at a “crucial historical juncture” following the government’s decision last month to review public subsidies promised to the project, which is a third-owned by state-owned China General Nuclear.

Writing in the Financial Times, Xiaoming said: “If Britain’s openness is a condition for bilateral co-operation, then mutual trust is the very foundation on which this is built.”

“Right now, the China-UK relationship is at a crucial historical juncture. Mutual trust should be treasured even more. I hope the UK will keep its door open to China and that the British government will continue to support Hinkley Point – and come to a decision as soon as possible so that the project can proceed smoothly.”

Prime minister May is reported to have ordered the last gasp review due to reservations about China taking a large stake in a key piece of UK infrastructure, with Hinkley Point C set to meet 7% of the UK’s energy needs when and if it completes. The review will conclude in “early autumn”.

Last week a well-placed source on the Hinkley Point C project told Building Chinese investors – many of whom travelled to Somerset earlier this month expecting to sign final contracts for the project – felt “they’ve had two fingers stuck up to them” by the UK government.

The Chinese ambassador’s intervention comes after a string of major investments by Chinese companies in the UK in recent weeks.

Hong Kong-based Far East Consortium was appointed to deliver 600 homes around Manchester’s Victoria Station last week, while Chinese builder Sichuan Gudong Construction Group last month agreed a 60-year tie-up with the city of Sheffield worth £1bn.