China's Nuclear Breakthrough: Behind South Korea's Nuclear Prosperity: The U.S.-South Korean Nuclear Alliance

Editor's Note: According to Bloomberg reports, South Korea is expected to account for nearly 50% of the global nuclear market in the future. South Korea hopes that its nuclear industry will lead the country into the ranks of highly developed nations (per capita GDP $40,000).

The Trump administration correctly identified Russia and China as major obstacles to its goal of dominating global nuclear energy in the 21st century.

A draft executive order on "leading the nuclear renaissance" states, "Since 2017, 87% of the world's nuclear reactors have been based on Russian and Chinese designs."

However, the United States currently has no nuclear reactors under construction, and there is no sign of a short-term change in this situation. The supply chain is shrinking, and the workforce is dwindling. Public utility companies are struggling due to massive cost overruns and delays at the Vogtle nuclear power plant in Georgia.

If domestic deployment does not recover, it will be unlikely to dominate overseas markets.

Artificial Intelligence [AI] Energy Opportunities

The main driver of U.S. energy demand is expected to be AI data centers. The U.S. government has made winning the AI race with China its top priority, with Interior Secretary Doug Burgum stating that losing to China in the AI race poses a "survival threat" to the United States.

The U.S. needs to cooperate with foreign allies on nuclear projects. The Korea-U.S. Partnership (KORUS) can not only attract financial support from South Korea but also financing from Middle Eastern oil countries. South Korea has already established nuclear cooperation with the United Arab Emirates (UAE) and Saudi Arabia. South Korea and the UAE have agreed to undertake "overseas joint nuclear projects." Any U.S.-Saudi nuclear reactor agreement would inevitably involve South Korea, accelerating the formation of a U.S.-South Korean Gulf nuclear alliance.

This approach can reduce the fiscal commitments required for the U.S. to promote large and small reactor deployments domestically.

In addition, the government needs to guide Congress to quickly approve the reauthorization of development finance companies and export-import banks. These two institutions are supporting nuclear projects in Poland and Romania, but under current legislation, they lack sufficient funds to finance large-scale U.S. overseas nuclear exports. Both institutions should be granted greater flexibility and funding to make them powerful weapons for nuclear exports.

The Trump administration correctly viewed Russia and China as its primary competitors in the global nuclear market share contest. The only way to win this struggle is to deploy American technology. Its upcoming executive order provides a clearer explanation of potential solutions. However, the proposals so far are likely too narrow in scope. While deregulation is important, private financing and firm commitments from foreign allies are also crucial. This requires more urgent and creative attention.

Source: The National Interest

Date: May 19

Author: Kenneth Louango

Original article: https://www.toutiao.com/article/1832599192546316/

Disclaimer: This article solely represents the author's personal views.