China, nuclear technology, and a US sale

Critics of a deal to sell China cutting-edge reactors hope to stall it in Congress by questioning the sale's taxpayer-backed financing.

from the May 30, 2007 edition

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China has its heart set on buying a cutting-edge US design for a nuclear-power reactor, and the Bush administration has said it is willing to sell because the transaction will mean jobs for Americans and pave the way for a "nuclear [power] renaissance in the US."

But critics of the mammoth $5 billion-plus sale are raising concerns that China might not use the advanced technology strictly for peaceful purposes, perhaps intending to "reverse engineer" pieces of it for military purposes.

That worry surfaced this month in a letter four members of Congress sent to Defense Secretary Robert Gates. The May 18 letter asked whether the sale of four nuclear-power reactors to China, approved by the administration in December, could end up enhancing Beijing's military, including its ability to produce nuclear fuel for bombs and increase the stealthiness of its submarines.

"This transaction presents potential security concerns that Congress will have to consider," wrote Reps. Jeff Fortenberry (R) of Nebraska, Ed Royce (R) of California, Christopher Smith (R) of New Jersey, and Diane Watson (D) of California. All serve on foreign or international relations committees of the House of Representatives.

The sale of US civilian nuclear technology to China has long been a matter of contention. The debate is intensifying now because Westinghouse Electric Co. is expected within weeks to apply for up to $5 billion in loans from the US Export-Import Bank to finance the sale of the reactors to China. When it comes, the application will trigger a review by Congress, where critics of the deal hope to raise enough questions about it to hold it up, perhaps for good.

If approved, the deal would be the largest by far in the history of the bank, a taxpayer-supported entity charged with creating and sustaining jobs by financing sales of US goods to international buyers.

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