China

The Chinese, as reported by my colleague Guy Chazan, are in talks with EDF on sharing the costs of building the new nuclear plant at Hinkley Point in Somerset. Their price is an unspecified “degree of control”. The Russian company Rosatom announced a couple of weeks ago that it was considering joining the game with the aim of building future nuclear stations in the UK. Perhaps we should be grateful that such nice people have taken an interest in the UK’s energy needs. But before we roll over in gratitude perhaps we should consider the links between energy and security. Read more

Organisations die when they become irrelevant. That is what is happening to the G8 which, for reasons I can’t understand, continues to exclude China. When the G8 was formed in the 70s to bring together the leaders of the world’s main economic powers at a time of crisis and recession, China was tiny in global economic terms and focused on its own internal political struggles. Now it is at the heart of the global economy. Excluding the Chinese in favour of Canada or Italy is insulting. Read more

Success always brings its own burdens. The Chinese economy has grown in real terms by around 8 or 9 per cent a year since 1980. Some 800 million people have been lifted out of subsistence. Dozens of new cities have been built. The country is now one of the world’s great economic powers even if it is still not allowed to join the G8. And growth continues. China is the world’s biggest building site.

One of the burdens which has come with economic success is the need to import oil. China has found very little oil, despite extensive exploration efforts – especially in the South China sea. Net imports have therefore risen steadily from zero twenty years ago to 5.6m barrels a day last month. Read more

The news that Exxon is to build a $10 bn LNG export facility in Texas marks another significant step forward in the story of shale gas and its disruptive impact on the world energy market. Those who want a parallel for the painful process through which so many of the established forces of the industry on one side and the lobby groups on another have struggled to come to terms with the reality of shale gas over the last three years should read John Heilbron’s fascinating book on GalileoRead more

Is it possible that while one Whitehall Department is constructing a “secret” crisis centre to deal with cyber attacks, another located less than a quarter of a mile away is preparing to sell part of the UK’s national infrastructure to the very people behind those attacks?

The establishment of a cyber security centre was reported by the FT last week. Anyone who doubts that its primary focus is the Chinese should read the report produced a couple of months ago by the specialist US consultancy Mandiant.

The company identified attacks originating in a building occupied by the General Staff Department of the People’s Liberation Army in Shanghai which had targeted 141 companies across 20 major industries. China has denied official involvement but has not yet agreed to stop the attacks.

Unfortunately no one seems to have mentioned these developments to Ed Davey, energy secretary, or EDF, the company which wants to develop new nuclear power stations in Britain. If the price and risk allocation for that deal is agreed, and Mr Davey has said that agreement is close, the next question is how the deal will be funded. EDF does not have the capacity to find the £14bn required and so has been looking to Chinese partners to provide much of the cash. Read more