Trade wars, corporate espionage, strategic land grabs… the list of issues we’re at odds with China over is so very long.
However, there is a major one that is not getting any headlines. It is simply too long-term of a trend.
At the same time, it will define which nation is dominant in a critical energy sector within a couple decades.
Renewable energy power generation in China reached 1,870 TWh and accounted for 26.7% of total generation in 2018.
To provide the baseline power that is needed to go with it, it is going on a nuclear power plant building spree.
Within the decade, China will surpass the U.S.A. as the largest nuclear energy producer.
In the process, it will almost certainly come to dominate the global market.
It is already starting to get a foothold, and it has profound geopolitical and military consequences.
While the U.S.A. and Europe have seen their companies involved in nuclear power struggle, if not outright collapse, China is heavily investing with an eye for exports.
It is actively courting just about any country that shows a speck of interest, from Argentina to the U.K. to Romania to Saudi Arabia to Pakistan.
It already tried to take over as the primary operator in the U.K. before public outcry caused a backlash and put an end to the deal.
And it is using all of its tricks — protectionism, subsidies, intellectual property theft, espionage, etc. — that have allowed it to dominate other sectors.
It isn’t just a matter of technology. It is a matter of security. The U.S.A. is already imposing restrictions and tariffs on commercial trade to limit what can be redirected for military ends.
A world where China is in control of the best nuclear technology and sells it to any nation is one that is far more susceptible to nuclear weapon proliferation and threats.
There isn’t a lot that can be done besides containment. The domestic demand for nuclear power guarantees that China will be a powerhouse.
China currently has 45 reactors in operation, with another 15 under construction.
And that is just the start.
If China sticks to its plans, it will eventually need another 100. That could mean a total of $2.4 trillion will be spent to increase nuclear power generation in China by 6,600%.
Make no mistake about it. This has all the makings of a new nuclear competition in a future cold war.
It’ll mean stiff competition in technology, trade deals with other countries, and fuel sources.
40 years ago, we wouldn’t have had to worry as much. The U.S.A. was entirely self-sufficient when it came to uranium supply.
Now we’re down to providing just 5% with a yearly shortfall of 48 million pounds.
And what we do get is coming from increasingly unfriendly countries — ones that will prefer China over us any day — like Russia, Kazakhstan, and Uzbekistan.
That’s exactly why the U.S. government has been investigating what can be done to make sure the country has a stable and secure supply of what is considered a critical commodity for national security.
There is only about a week left before it should announce the results, but the writing is on the wall.
America is going to get back in the business of mining uranium, and the small handful of companies that can mine domestic uranium should see a windfall.
