U.S. Espionage Charge Against China General Nuclear Power Corporation Complicates Further UK’s Hinkley Point Nuclear Project

On August 12, one of the main Chi­nese part­ners in the Hink­ley Point nuclear pow­er project, Chi­na Gen­er­al Nuclear Pow­er (CGNPC), was accused of lead­ing efforts to steal U.S. nuclear tech­nol­o­gy.  Accord­ing to inves­ti­ga­tions by the FBI and the Nation­al Secu­ri­ty Divi­sion of the U.S. Jus­tice Depart­ment, CGNPC has been recruit­ing Amer­i­can nuclear experts to obtain sen­si­tive nuclear tech­nol­o­gy in an effort to speed up Chi­nese nuclear reac­tor devel­op­ment. 

One of CGNPC‘s senior advi­sors, Allen Ho, will be in a U.S. court the week of August 15th to face charges of nuclear espi­onage.  Mr. Ho was orig­i­nal­ly arrest­ed in April 2016.  He alleged­ly began his recruit­ment activ­i­ties in 1997.  Dur­ing an attempt to recruit a U.S. nuclear expert in 2009 he was quot­ed as say­ing ‘‘‘Chi­na has the bud­get to spend.  They want to bypass the research stage and go direct­ly to the final design and man­u­fac­tur­ing phase.‘  Accord­ing the U.S. Attor­ney Gen­er­al, ‘‘‘Mr. Ho, at the direc­tion of a Chi­nese state-owned nuclear pow­er com­pa­ny alleged­ly approached and enlist­ed U.S.-based nuclear experts to pro­vide inte­gral assis­tance in devel­op­ing and pro­duc­ing spe­cial nuclear mate­r­i­al in Chi­na.‘

These accu­sa­tions have height­ened the secu­ri­ty con­cerns with­in the British gov­ern­ment con­cern­ing Chi­nese involve­ment in Hink­ley Point, a crit­i­cal nuclear infra­struc­ture project.  It makes like­ly the prospect that Chi­na would be con­struct­ing nuclear pow­er plants in the UK using stolen U.S. nuclear tech­nol­o­gy.  U.S. inves­ti­ga­tors describe CGNPC as being under the ‘‘‘direct con­trol‘ of China‘s State Coun­cil and that its board of direc­tors is ‘‘‘com­prised of mem­bers of the Com­mu­nist Par­ty of Chi­na.‘

This is not the first time Chi­na has attempt­ed to steal U.S. nuclear tech­nol­o­gy.  In May 2014, the U.S. gov­ern­ment iden­ti­fied five Chi­nese mil­i­tary hack­ers who inter­cept­ed inter­nal com­mu­ni­ca­tions of the U.S. nuclear com­pa­ny West­ing­house.  This breach occurred while West­ing­house was in nego­ti­a­tions with China‘s State Nuclear Pow­er Tech­nol­o­gy Cor­po­ra­tion over the shar­ing of its AP1000 reac­tor design.  The infor­ma­tion stolen includ­ed tech­ni­cal data on AP1000 reac­tor and Westinghouse‘s nego­ti­at­ing strat­e­gy.

It does not help mat­ters that CGNPC is also slat­ed to help deploy as many as twen­ty float­ing nuclear plat­forms to Beijing‘s ille­gal arti­fi­cial islands in the South Chi­na Sea under the aus­pices of the Peo­ple’s Lib­er­a­tion Army.  This plan rep­re­sents a major strate­gic con­cern of the U.S. and its allies — or cer­tain­ly should.