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China National Nuclear Corporation (CNNC)

中国核工业总公司

No. 1 Sanlihe Nasanxiang, Xicheng District, Beijing 100822
P.O. Box 2102 Beijing 100822
Tel: 8610-68512211
Fax: 8610-68533989

Website: www.cnnc.com.cn

PRESIDENT: Sun Qin was appointed in August 2009 after CNNC's previous head, Kang Rixin, was put under investigation for $260 million that was earmarked for the construction of three nuclear plants and allegedly used the funds for the stock market sustaining heavy losses. Kang Rixin is also accused of accepting bribes from a foreign company that intended to build nuclear power stations in China.

HISTORICAL BACKGROUND

On 4 May 1982, China's Ministry of Nuclear Industry (MNI) was created from the Second Ministry of Machine-Building, and was subsequently reorganized and renamed the China National Nuclear Corporation (CNNC) six years later.

The China National Nuclear Corporation (CNNC) was established on 16 September 1988 by the authority of the State Council. CNNC's president and vice-president are appointed by the Premier of the State Council. The CNNC is a self-supporting economic corporation, not a government administrative body. It now oversees all aspects of China's civilian and military nuclear programs. According to the CNNC, it "combines military production with civilian production, taking nuclear industry as the basis while developing nuclear power and promoting a diversified economy." CNNC is a nationwide industrial conglomerate integrating science, technology, industry, and international trade.

In the past, the CNNC functioned as a government bureau for the national nuclear industry and reported directly to the State Council. It oversaw China's nuclear-related corporations, manufacturers, institutions, research institutes, and plants, including those related to nuclear weapons. It was responsible for the design and operation of nuclear power plants; nuclear fuel production and supply, including the processing of natural uranium, uranium conversion and enrichment, fuel assembly fabrication, spent fuel reprocessing, and nuclear waste disposal; research and development of advanced reactors and nuclear fuel technology; nuclear training; import and export of nuclear equipment and technology; research and development in nuclear physics, nuclear fusion, lasers, nuclear chemical engineering, and nuclear instruments and equipment; and research and testing of power and research reactors and accelerators.

GOVERNMENT REORGANIZATION: March 1998 - Present

As with all of China's five defense industrial ministries, the China National Nuclear Corporation was reorganized and restructured. Following the March 1998 meeting of the National People's Congress (NPC), the CNNC was split into several entities. The China Atomic Energy Agency (aka State Atomic Energy Agency), was separated from the CNNC and was placed under the control of the Commission of Science, Technology and Industry for National Defense (COSTIND), now State Administration for Science, Technology and Industry for National Defense (SASTIND). (The CAEA is responsible for carrying out the administrative duties and government functions of China's nuclear industry; it also addresses critical nonproliferation issues such as control of China's nuclear exports, nuclear safeguarding issues, and nuclear material control.)

As a part of the July 1999 reform aimed at establishing 10 large state-owned military industrial corporations the China Nuclear Industrial Group (CNIG, 中国核工業集団公司) and China Nuclear Engineering and Construction Group (CNECG) were established on the foundation of the part enterprises and institutions of the CNNC. The CNIG operates nuclear power stations, nuclear heat-supply reactors, scientific research reactors, radiation services and engage in R&D work related to nuclear energy. CNIG is also responsible for mining of uranium into nuclear fuel, nuclear manufacturing for both military and civilian use, nuclear waste treatment and storage, and nuclear safety. CNECG, consisting of 13 business units, is responsible for China's several nuclear construction projects.

In the end of 2006 CNNC established China Nuclear International Uranium Corporation (SinoU) as the first and substantial step forward to carry through the national strategy of "going out" to enhance the exploitation of foreign uranium resources. SinoU is a wholly-owned subsidiary of CNNC, with independent enterprise legal personality. As a platform of CNNC for overseas uranium exploitation and project financing, the corporation undertakes overseas uranium exploration and exploitation, resources evaluation, construction of and investment to mines and milling plant, production and management of natural uranium, etc. Based on the work carried out by the former Overseas Uranium Exploitation Dept. of CNNC, SinoU extensively gets in touch with and holds talks with foreign mining enterprises and resources exploration companies. Several cooperation intentions have been reached, and some projects have been carried out.

[Sources: China Nuclear Engineering & Construction Corporation, www.techinfo.gov.cn, Nuclear Sector Reform Under Way, China Daily, 5 February 1999; Mark Hibbs, With Demand Below Projections, China May Drop Nuclear Projects, Nucleonics Week, 4 March 1999; Liu Weiling, "CNNC To Focus on Nuclear Products Technology," China Daily, 3 July 1999; "New Structure of China's nuclear industry," Nuclear Europe Worldscan, November/December 1999, pp. 55, 56; "Nuclear Industrial System Restructured," China Business Information Network (CBNet), 5 July 1999. in LexisNexis.]

FUNCTIONS

At its peak, CNNC employed over 280,000 people and oversaw 246 enterprises and institutions. Currently, the numbers are closer to 200,000 and 119 respectively. The goal of CNNC is to achieve self-reliance in the design, manufacture, construction, and operation of nuclear power plants, and to obtain fuel cycle nuclear technology. As of 2005, CNNC had established trading ties with over 100 companies in over 40 countries.

According to Weixing Hu, "For the nuclear industry, defense conversion means a redirection to civilian nuclear programs. When it shifted its focus to nuclear energy programs, the [CNNC] began to diversify its products and to chase foreign customers in the international market...The CNNC's long-term goal is to achieve self-reliance in the design, manufacture, construction, and running of nuclear power plants, and to possess the full-cycle nuclear fuel technology. To achieve this objective, it needs, on the one hand, to introduce advanced Western technology and know-how into its program and, on the other hand, to export what it produces to the world market to support its foreign purchases." [Weixing Hu, "China's Nuclear Export Controls: Policy And Regulations," Nonproliferation Review, Winter 1994, p. 4.]

DEPARTMENT OF SCIENCE, TECHNOLOGY AND INTERNATIONAL COOPERATION: Conducts research and development in nuclear technology. Manages foreign affairs in the nuclear field.
DEPARTMENT OF NUCLEAR FUELS: Responsible for nuclear material control.
DEPARTMENT OF NUCLEAR POWER: Operates China's nuclear power stations.
DEPARTMENT OF SAFETY, PROTECTION AND QUALITY: Ensures protection of facilities.

CNNC SUBSIDIARY CORPORATIONS:

[Sources: Nukem, September 1997; Yan Kong, "China's Nuclear Bureaucracy," Jane's Intelligence Review, July 1993, p. 325; DIA chart; Risk Report, November 1995, p. 6; "World Nuclear Industry Handbook 1995," Nuclear Engineering International, p. 133; Chen Zhaobo, "Development of Nuclear Power in China," Nuclear Europe Worldscan, November-December 1995, p. 49; "Official Chides US Over Nuke Ban," NNN News, 2 January 1996; Mark Hibbs and Margaret L. Ryan, "Official Says China Developing Ability to Supply Entire PWRs," Nucleonics Week, 1 October 1992, pp. 4-5; Weixing Hu, "China's Nuclear Export Controls: Policy and Regulations," Nonproliferation Review, Winter 1994, pp. 4, 8.]

CNNC SUBORDINATE FACTORIES/PLANTS

CNNC SUBORDINATE INSTITUTES

CNNC SUBORDINATE BUREAUS OF GEOLOGIC EXPLORATION

CNNC SUBORDINATE CONSTRUCTION AND INSTALLATION COMPANIES

Updated December 2009

CNS This material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, agents. Copyright © 2010 by MIIS.


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