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China in Pakistan nuclear deal

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China in Pakistan nuclear deal
By Geoff Dyer in Beijing, Farhan Bokhari in Islamabad and,James Lamont in New Delhi

Published: April 29 2010 03:00 | Last updated: April 29 2010 03:00

China has agreed to build two new civilian nuclear reactors in Pakistan, according to Chinese companies and officials in Islamabad and Beijing, in a deal that could reignite debate about nuclear commerce and proliferation.

The decision to supply reactors to Pakistan , which has a nuclear arsenal and a record of exporting its expertise to North Korea, Iran and Libya, reflects China's growing diplomatic confidence. It also points to Beijing's ambition to become a global supplier of nuclear energy technology and underscores its view of Pakistan as a prized south Asian strategic partner .

The new deal with Pakistan, which has yet to be announced, poses a dilemma for Barack Obama's US administration, which wants Chinese support for sanctions against Iran but does not want to weaken the nuclear non-proliferation treaty.

Non-proliferation is one of Washington's main foreign policy goals .

China began building a nuclear reactor in Chashma, in Pakistan's Punjab province, in 1991. Work on a second reactor began in 2005 and is expected to be completed next year.

Under the new agreement, Chinese companies will build at least two new 650 megawatt reactors at Chashma.

A senior Pakistani government official familiar with the discussions with China said yesterday: "Our Chinese brothers have once again lived up to our expectations. They have agreed to continue co-operating with us in the nuclear energy field."

In a statement on its website, China National Nuclear Corporation said the Chinese and Pakistan governments had signed an agreement to finance the construction of the two new reactors in February.

Last year, Shanghai Nuclear Engineering Research and Design Institute said it had been hired to design the new reactors.

Diplomats in China said they had been told Beijing had given formal approval to the deal, although they cautioned there could be last-minute hitches in the bilateral agreement.

Mark Hibbs of the Carnegie Endowment for International Peace said China had decided to go ahead because "for political reasons it felt Pakistan should be compensated in some way for the US-India nuclear deal ".

The deal between Washington and New Delhi facilitated nuclear co-operation even though India has not signed the non-proliferation treaty.

"After the dust settled on the US-India nuclear deal, China gravitated towards a position that it will support nuclear commerce if it benefits Chinese industry," added Mr Hibbs.

The Obama administration could well not oppose China's new nuclear deal with Pakistan, Mr Hibbs said, because it wants to keep Pakistan engaged in Afghanistan and gain Chinese support over Iran's nuclear programme. He also said the US would find it difficult to oppose China's support for Pakistan after signing the US-India civil nuclear agreement.

Source - China in Pakistan nuclear deal
 
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