May 30, 2007

US civilian nuclear technology to China

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.

Besides security, we need to address the following sensitive topics, as well:

•Financing of the sale. Should US taxpayers be financing a multibillion-dollar loan to China at a time when China is running a massive trade surplus with the US? What do the taxpayers, who by some estimates contributed at least $300 million to Westinghouse Electric's advanced reactor design, get out of the deal – especially considering that a Japanese firm now owns 77 percent of Westinghouse?

•Technology transfer. China reportedly will get most of the new AP1000 technology, the latest US reactor design, as part of the sale. Some nonproliferation experts say the design of the reactor's coolant pump is of particular concern, and that China might be able to reverse-engineer it for use on its nuclear submarines.

No comments: