China and Russia cooperate on nuclear project

China and Russia have signed a contract for the joint construction of a nuclear power station in eastern China. The deal is the biggest between the two countries in recent years. The first of the power station's two reactors is due to begin operation in seven years' time. Our Chinese affairs analyst James Miles says the agreement highlights Russia's importance as a supplier of sensitive high technology to China.

The contract between China and Russia for the joint construction of a nuclear power plant in eastern China is a major development in economic relations between the two countries. Trade between Russia and China is still miniscule compared with the flow of goods between China and Western countries. The nuclear deal alone is worth about half of annual trade between the two giant neighbours.

The contract places Russia firmly alongside France and Canada as a leading exporter of nuclear power technology to China. It's a market that many are eager to exploit. China has major plans to boost its nuclear power industry in the coming years in order to fuel its rapid economic growth and reduce dependence on its main energy source, coal.

The Russians will be particularly pleased to have gained an early foothold given that potential competitors in the United States are hard on their heels.

The Americans had long been reluctant to allow the sale of nuclear technology to China because of concerns that Beijing might pass it on to other countries deemed by the United States to be unreliable, such as Iran.

One of the main outcomes of the summit meeting in October between China's President Jiang Zemin and President Clinton in Washington was an agreement that the ban on nuclear power related exports to China would be lifted.

The power plant deal highlights the importance China attaches to Russia as a supplier of sensitive high technology. Even before this latest contract was signed in Beijing, Russia's nuclear exports to China were growing rapidly. Last year they were worth 60 million dollars. They're expected to be worth double that amount this year.

Russia has already built a uranium enrichment plant in China and a second is due to be completed next year. From next year, the Moscow Engineering and Physics Institute will begin accepting Chinese students of nuclear technology.

China has also been a major buyer of Russian military technology -- most notably Sukhoi 27 fighter planes. The purchase of these aircraft has caused concern among some of China's neighbours, particularly Taiwan. There have been reports that Moscow and Beijing are also discussing the possible sale of other types of fighter aircraft and destroyers to China.

The visit to Beijing in November by President Yeltsin of Russia may well have given impetus to the development of such sales. To Beijing, Russia certainly appears a far more reliable partner in this area than the United States, which despite its warming ties with Beijing remains wary of exporting sensitive technology to China, particularly any with military applications.