US Seeks Share of China's Nuclear Power Program

["Sandy Perle" <sandyfl@earthlink.net>]

US Seeks Share of China's Nuclear Power Program
 
Beijing, March 20 (Bloomberg) -- China is expected to invest about 
$15 billion in new nuclear power plants from 2001 to 2005 to 
diversify power generation, and U.S. companies are now angling for a 
share of a market that was closed to them until 1998. 

China is now formulating its 10th five-year plan, covering the period 
from 2001 to 2005. Under discussion is a proposal to build four to 
six reactor units in the provinces of Guangdong, Shandong and 
Zhejiang, said Woodrow Williams, director of sales for General 
Electric Company's nuclear energy division. 

Each reactor unit carries a price tag of $2.5 billion to $4 billion 
said Joe F. Colvin, chief executive of the Nuclear Energy Institute, 
a U.S. industry group. With approximately $15 billion in potential 
business at stake, U.S. manufacturers are in Beijing trying to raise 
their profile at the International Nuclear Industry Exhibition, which 
opened today, he said. 

``Our purpose here is really to try to bring to the Chinese the 
benefits of our technology,'' Colvin said. ``The U.S. has been the 
teacher and the leader in this technology and our message to China 
is: ``you ought to learn from the teacher and not from the 
students''.'' 

Until 1998, U.S. law prohibited U.S. companies from selling nuclear 
power plant technology to China, which allowed companies from France 
and Canada to dominate the Chinese market. 

With the large scale of planned investment, the U.S. companies are 
looking to gain ground, Colvin said. 

``There's a great opportunity here and obviously we want to get in 
here and develop partnerships with China like the French and the 
Canadians have done so far,'' he said. 

New Plants 

China currently has three nuclear power plants in operation, with 
another eight under construction, though nuclear power still accounts 
for less than 1 percent of China's total electric power output, 
Colvin said. 

China aims to generate about 3 percent of its electricity through 
nuclear power by the year 2006, earlier reports in official media 
said. 

``We would like to be able to participate in those plans and we've 
been working with the various provinces that are currently planning 
these projects,'' GE's Williams said. 

While U.S. companies are excited about the prospects for the Chinese 
market, they could be hampered by China's lack of legislation on 
nuclear liability protection, Williams said. 

The framework for how the Chinese government would provide liability 
protection for manufacturers in the event of an accident was provided 
in an executive order written in 1986, although it is not in the form 
of a law, he said. 

Some U.S. companies have already worked with China to provide 
expertise on the subject and an international seminar on nuclear 
liability will be held in Beijing at the end of April. 

Draft Law 

Meantime, a legislative committee in China's National People's 
Congress is drafting a bill similar to the U.S. Atomic Energy Act. 
The proposed legislation could be ready within a year, Williams said. 

``The Chinese know they have to come up with a law on nuclear 
liability,'' he said. ``Without that protection, some U.S. companies 
may decide not to bid for these projects.'' 

One other potential stumbling block for U.S. companies seeking a 
foothold in the China market is competing strategies for developing 
China's nuclear power industry put forward by the two main government 
agencies charged with setting policy. 

On the one hand is the China National Nuclear Corporation, which is 
pushing the idea of gradually improving old designs. 

While the corporation has asked U.S companies if they would 
participate in such modifications, the U.S. companies have no 
interest in such plans. 

``We have said absolutely not, we will not do it, period,'' Williams 
said. ``It's the wrong thing to do as China should embrace advancing 
technology, improve safety, improve the techniques of construction 
and reduce the overall costs of generating electricity. But if they 
take the CNNC approach, they will not do any of that.'' 

The State Power Corporation, an umbrella organization for provincial 
utilities that grew out of the old Ministry of Electric Power, says 
China should embrace advanced, proven technologies. 

General Electric is hoping the State Power Corporation will win out 
so the company can sell its advanced boiling water reactor technology 
to China, Williams said. 

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Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
Director, Technical				Extension 2306 				     	
ICN Worldwide Dosimetry Division		Fax:(714) 668-3149 	                   		    
ICN Biomedicals, Inc.				E-Mail: sandyfl@earthlink.net 				                           
ICN Plaza, 3300 Hyland Avenue  		E-Mail: sperle@icnpharm.com          	          
Costa Mesa, CA 92626                                      

Personal Website:  http://www.geocities.com/capecanaveral/1205
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