British finance minister George Osborne chats with workers in front of a nuclear reactor under construction at a nuclear power plant in Taishan, Guangdong Province on Thursday, the final day of his trip in China. Photo: CFP

Chinese companies could influence the next generation of nuclear power projects in the UK, as they will be allowed to take stakes in British nuclear power plants, following a new memorandum of understanding signed in Beijing this week.

British finance minister George Osborne on Thursday announced that the UK will allow Chinese companies to take stakes in its nuclear power projects during a visit to the Taishan nuclear power station in Guangdong Province, which is a joint venture between CGN and French energy giant Electricite De France (EDF).

The announcement came after the signing of the memorandum on civil nuclear collaboration witnessed by Osborne and Chinese Vice-Premier Ma Kai, which sets the strategic collaboration framework on investment, technology, construction and expertise, according to a release by the British government on Thursday.

According to the release, Chinese stakes in nuclear power stations in Britain were likely to be minority shares, but "over time stakes in subsequent new power stations could be majority stakes."

China General Nuclear Power Group (CGN), a top nuclear power corporation in China, said Thursday that the company will contribute to a new nuclear power project in the UK.

"CGN will enter the British nuclear power market with our successful experience on power plant construction and management," the press office of CGN told the Global Times on Thursday.

CGN said the company's cooperation with French partners on the European Pressurized Reactor (EPR) technology was good practice and that the technology will be used for a new British nuclear power project.

The planned project is reported to be located at Hinckley Point in Somerset, the first new station in UK since 1995, according to Reuters.

Yang Fang, a research fellow with the Institute of European Studies at the Chinese Academy of Social Sciences, told the Global Times that CGN's joining the British nuclear power market will have the effect of demonstrating Chinese companies' ability and strength in the field of nuclear power to the world.

"Today is another demonstration of the next big step in the relationship between Britain and China - the world's oldest civil nuclear power and the world's fastest growing civil nuclear power," Osborne said in a press release Thursday.

Osborne said it was "an important potential part of the government's plan for developing the next generation of nuclear power in Britain."

"The British economy is still in recovery and Britain needs China's investment to bring more jobs," said Yang.

"The British labor union and some lawmakers have expressed their opposition to Chinese companies' investment in the country's nuclear power construction," said Yang, adding that doubts will continue to exist though the British government has expressed welcome to Chinese companies.

Agencies contributed to this story