China warns relationship with Britain is at a ‘crucial historical juncture’

It comes after Theresa May deferred a decision on the £18 billion Hinkley Point nuclear station

Artists impression of Hinkley Point (PA)

China’s ambassador to the UK has warned the relationship between Beijing and London stands at a “crucial historical juncture” over the deferral of a decision on Hinkley Point power station.

It comes after Theresa May’s new administration delayed the decision on the £18bn nuclear power project without giving an official reason, casting doubt on the future of Britain’s first nuclear power plant in more than two decades.

But in an opinion piece for the Financial Times, Liu Xiaoming stressed the importance of the UK’s “openness” in making it one of the biggest recipients of Chinese foreign investment. “An important reason why this has been possible is that both China and the UK have consistently respected and trusted each other,” he wrote.

Chinese investors have agreed to put up a third of the construction costs, with two thirds coming from the French energy firm EDF. If the project in Somerset gets the go-ahead in September, the Chinese will then be looking to build a second nuclear power station, to their own design, at Bradwell, in Essex.

“If Britain’s openness is a condition for bilateral co-operation, then mutual trust is the very foundation on which this is built,” Mr Liu added. “Right now, the China-UK relationship is at a crucial historical juncture. Mutual trust should be treasured even more.

“I hope the UK will keep its door open to China and that the British government will continue to support Hinkley Point – and come to a decision as soon as possible so that the project can proceed smoothly.”

Chinese investors would put up a third of the £18bn construction costs of the new station (Getty)

He added: “It has not been easy for China and the UK to have come this far. As long as both sides cherish what has been achieved and continue to expand and deepen our co-operation across the board, bilateral relations will maintain their strong momentum and work for the wellbeing of both the Chinese and British people.”

A Government spokesperson told The Independent: "As we've already made clear - this decision is about a huge infrastructure project and it's right that the new Government carefully considers it. We co-operate with China on a broad range of areas from the global economy to international issues and we will continue to seek a strong relationship with China.

“The message that we continue to take to the world is that Britain remains open for business and we are the same outward-looking, globally minded country we have always been.”

In a sign of the tensions within Downing Street, it has previously been reported that Treasury minister, Jim O’Neill, a former chief economist for Goldman Sachs, has privately said he will resign from the Government if Ms May decides against the power station later this year.