Alexander Downer warned UK on China nuclear play

Australian diplomats warned the British government of national sec­urity risks from an ‘aggressive’ China.

Marise Payne, Alexander Downer, UK Secretary of State for Defence Michael Fallon, Julie Bishop and UK Foreign Secretary Boris Johnson arrive ahead of the annual AUKMIN summit in London last week.

Australian diplomats warned the British government of national sec­urity risks from an “aggressive’’ China before Britain’s Prime Minister, Theresa May, last night imposed extra oversight conditions on Chinese investment in a new $30 billion nuclear power plant.

Australia’s top officials in London were summoned to 10 Downing Street more than a week ago to discuss Australia’s relationship with China and how the country diplomatically rejected the involvement of Chinese company Huawei in Australia’s broadband rollout in 2012 and last month’s decision to exclude China from a controlling stake in NSW electricity network Ausgrid. Both were rejected in Australia on the grounds of national security.

Australian high commissioner to Britain Alexander Downer was a former board member of ­Huawei Australia at the time the company was banned from working on the rollout of the ­National Broadband Network.

The Australian understands Mr Downer — who has relinquished ties to Huawei — told Mrs May and her advisers that China had become more aggressive in recent times.

Australia’s advice to be wary, along with that of other countries with which Britain has a close ­relationship, resulted in a slew of extra security and monitoring conditions on the Hinkley Point project, which will supply 7 per cent of Britain’s electricity.

They include restrictions on China’s partner, the French firm EDF, selling its stake without government approval. Britain is also to bring in a new national sec­urity test for all foreign investment in critical infrastructure.

The British government will now “take a special share in all future nuclear new build projects’’. Britain is also now to introduce a layer of scrutiny on all of the country’s critical infrastructure, including for national security, similar to Australia’s Foreign Investment Review Board.

The new layer of scrutiny could pose problems for the Chinese, whose state company China General Nuclear Power Group had agreed to inject nearly $12bn into Hinkley. CGN joined EDF in the project on proviso of being able to lead and design a new nuclear facility at Bradwell in Essex.

Britain is working on encouraging closer economic ties with China and is eyeing Australia’s free-trade agreement with China as a blueprint for a similar deal after the Brexit.

One of Mrs May’s first moves upon becoming Prime Minister was to suspend the Hinkley Point nuclear proposal to review the national risks, and the minimum price agreement.

Britain allowed Huawei to supply telecommunications equipment to its biggest communications retailers BT and Vodafone, under supervision from the Government Communications Headquarters.

New foreign ownership scrutiny might affect Huawei, which has injected $2.4bn into Britain in a five-year procurement and investment project finishing next year.

“It wouldn’t be allowed to happen today,’’ a connected British official told The Australian.