• New guidance would restrict advanced reactor, SMR trade with China
• Trade with China General Nuclear also being restricted
• NEI working to determine impact of new rules

The U.S. government has announced a new policy framework for civil nuclear cooperation with China, citing concerns over Chinese diversion of sensitive technologies to military and other unauthorized uses. The policy imposes significant new restrictions on U.S. exports of commercial nuclear technology, equipment and material to China. The policy establishes a presumption of denial for multiple categories of export applications, including nonlight water advanced reactor and light water small reactor technology (SMR).

In a recent U.S. government briefing to industry, an interagency group cited “China’s efforts to obtain nuclear technology outside of established processes of U.S.-China civil nuclear cooperation” as the basis for curtailing U.S.-China nuclear commerce. 

NEI Vice President of Suppliers, New Reactors and International Programs Dan Lipman acknowledged that the policy framework is based on legitimate concerns, but cautioned that careful implementation is critical to mitigate commercial harms.

“The U.S. government has undertaken a thorough review of civil nuclear cooperation with China and developed a policy that seeks to balance national and economic security concerns with potential harms to our strategically important industry,” Lipman said.

Applications for export authorizations to China under 10 CFR Part 110 and 10 CFR Part 810 have been on hold since last year during the National Security Council-led policy review. The U.S. Department of Energy published an overview of the new policy framework for DOE’s Part 810 authorization process, governing technology exports, and the U.S. Nuclear Regulatory Commission’s Part 110 process, governing the export of items. DOE and NRC announced that they will meet with applicants immediately in order to clear the backlog of pending applications. 

In addition to blocking transfers to China of advanced reactor and nonlight water small reactor technology, the new policy framework will establish a presumption of denial for transfers to the China General Nuclear Power Group (CGN), a Chinese energy company that constructs and operates nuclear power plants, and for all new technology transfers after Jan. 1, 2018.

The guidance appears to have little effect on the approved transfer of large light water reactor technologies and components, such as those for the Westinghouse AP1000s currently operating in China. Four AP1000s under construction in China have started operations and are now connected to the electric grid.

According to DOE, the new guidance presumes approval for:

• amendments or extensions of existing Part 810 authorizations for technology transferred prior to Jan. 1, 2018
• applications for transfer of equipment and components in support of continuing projects such as the construction of AP1000, CAP-1000 and some components for CAP-1400 reactors.

The guidance presumes denial for:

• new Part 810 license applications and extensions for exports related to light water small modular reactors and nonlight water advanced reactors
• new technology transfers after Jan. 1, 2018
• any transfer to CGN and its subsidiaries or related entities
• exports for equipment and components related to direct economic competition with the United States, such as the Hualong One and unique U.S. components supporting CAP-1400 reactors
• applications for equipment and components to be transferred to CGN, CGN subsidiaries or related entities.