China approves four nuclear projects as Beijing accelerates reactor buildout

China's State Council approved four nuclear power projects including the Liaoning Zhuanghe Phase I plant, extending a buildout that has made Beijing the world's most active reactor developer as data-center demand strains the grid.

The decision, announced at an executive meeting chaired by Premier Li Qiang and reported by state broadcaster CCTV, extends a series of approvals Beijing has sustained since 2022 as part of its clean-energy transition. The pace contrasts with the U.S., where the first new reactor in decades — Georgia's Vogtle plant — came online in 2023, seven years late and $17 billion over budget, according to project records.

The approvals come as governments worldwide race to expand atomic power to meet surging electricity demand. In the U.S., President Donald Trump has moved to quadruple domestic nuclear output, and the Energy Department in July signed agreements with five states — Tennessee, Louisiana, Oklahoma, Utah and Idaho — to host nuclear waste sites in exchange for federal help developing reactors. Illinois, home to 11 reactors across six plants, lifted a four-decade moratorium on new large-scale plants in January and is soliciting communities to host new facilities.

The approvals are a positive for Chinese nuclear equipment makers, engineering contractors and utilities, which stand to benefit from sustained state spending on atomic power. Beijing's target of carbon neutrality by 2060 underpins the buildout, with nuclear filling a baseload role alongside wind and solar.

Beijing's reactor pipeline

China's approval cadence has made it the dominant force in global reactor construction, with the country operating the world's largest fleet of units under construction, according to industry data. The Liaoning Zhuanghe project, in the northeastern province, is among the largest of the newly approved units. China has also exported its Hualong One reactor design to Pakistan and Argentina, extending its influence over the global supply chain for reactor components and fuel.

Investors eye the nuclear supply chain

For investors, the approvals point to continued government support for the nuclear supply chain, from reactor pressure vessels and steam generators to fuel fabrication and grid connections. Chinese state-owned utilities that operate reactors, along with equipment suppliers, are the primary beneficiaries. Construction typically spans five to seven years per unit, giving suppliers multi-year revenue visibility that is rarely matched elsewhere in the power sector.

Globally, the nuclear renaissance is gathering pace. The U.S. Energy Department estimates its proposed nuclear campuses could attract up to $50 billion in private investment and generate as much as $10 billion in state and local tax revenues. "These campuses will be massive generators of economic growth ... and be crucial to unleashing America's nuclear renaissance," Energy Secretary Chris Wright said. Small modular reactors — factory-built units typically under 300 megawatts — remain largely unproven commercially, with only two operating worldwide, in Russia and China.

This article is for informational purposes only and does not constitute investment advice.