PROLIFERATION DIGEST

Created: 2/29/1996

OCR scan of the original document, errors are possible

Proliferation Digest

February iw6

Page

Unlikely To Adjust Nuclear Export Behavior To Acquire I

Technology

Acquisition of major nuclear components and relatedwould help China's nuclear industry to boostfrom nuclear power arid to sell nuclear poweikey consideration given (he increased importanceto the industry. Although Chinese officials recenily havesignals on Beijing's willingness to curb nuclearIran in exchange for US nuclear technology. Chinato provide assistance to Iran's uraniumfacility that probably is intended to support Iran's

uranium enrichment pioject. |

China is unlikely to halt its ongoing sensitive nuclear relationship with Pakistan in exchange for US nuclear cooperation.

Perspective

China Unlikely To Adjust Nuclear Export Behavior To Acquire Western Technology

:

Acquisition of major nuclear components and related productionwould help China's nuclear industry to boost electricitynuclear power and to sell nuclear power plantskeygiven the increased importance of exports to die industry.officials recently have sent mixed signals on Beijing'scurb nuclear cooperation with Iran in exchange for US nuclearChina is continuing to provide assistance to Iran's uraniumfacility tha, probablyintended to support Iran'sproject.is unlikely to

halt its ongoing sensitive nuclear relationship with Pakistan inUS nuclear

China's Need for Imports of Nuclear Technology (H

Despite extensive efforts by China's nuclear hdostrythe Chinesemanufacture key reactor parts, such as pressure vessels and steamtubeseaawatt (MW| re actors,

face even greater difficulties in producing

W or larger

Chinese factory fabricating the pres-

sure vessel forW power reactor being built at Chasma.has been unable to weld the vessel without breaks. The "spot repairs" of these breaks probably will result in weakotential safety hazard.

fThina is unable to produce the steam generator tubes ana main cooiam

pumps for Chasma.

|r

tained that China would obtain steam generator tubes from abroad, and Jhe manufacture of main coolant pumps was stil

out of China's reach.

China lias been forced to seek pans from foreign suppliers, most of whom are members of the Nuclear Suppliers Grouphe NSG. however, discourages the sale of keypressure vessels and

bilious Plant frw Suclrar Power ^

Facedrotestedtrcent shortfall in electrical power oxer the neit decade, Chinese energy officials4 announced plans to increase iruiailed nuclear energy capacity from thriguwatti (GW) to at least SO GWlthough China pridnthly will not meet this ambitiousis already somewhat behindls overall energy expansionis likely lo greatly expand Us nuclear power capacity'

China already hat approved plans for construction of eight new nuclear power plantsapaciryS GW. and another seven plants are in the planning stages, according to Chinese prtss

7

Af least rune of their pUruy will be burb byfoee,gnFranceemdtmelUr domtuit industry picms will require

Chinese nuclear mdustry rrffcials have said ihal iheir choice of supplier will depend primcr-.ly <jn tKr price and pouncing offered.

The French-built plant at Daya Bay. in Guangdong rrovtnrt. ha.

financed w'uh thr help of French Government loans, the China Motional Nuclear Corporation, the praxiinciol power authority, and ihe electrical power utility in nearby Hong Kong. [

coolantcountries, such as China, (hat do not require buyers to adhere to full-scope IAEA safegua.-ds.esult. China has had difficulty purchasing these components from abroad. China's success in obtaining or manufacturing these major parts probably will determinenuclear power reactor project in Pakistan will be completed.

Success in acquiring major nuclear components and'or the technologythem will help China's nuclear industry to boost electricityfrom nuclear power (see inset) and to gain additional foreignkey consideration given the increased mrxrtance of exportsouncil

alfdirect government funding to the China National Nuclear(CNNO andnd production facilities to fundthrough exports.NNC reported in the Chinese prcsj that ils profits continued lo decrease despite increases in production.!

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