DSET”s Global Research Fellow Sunny Cheung, Director of the Energy Resilience Program Dr. Tsaiying Lu, and Non-Resident Fellow Yu-Hsuan Yeh have jointly contributed an analytical commentary to PacNet, the publication platform of the Pacific Forum. Their article, titled “Beyond fission: Where China is getting with small modular and fusion reactors,” offers a comprehensive assessment of China’s rapid advancements in nuclear technologies and the resulting geopolitical implications for regional energy security.
The authors note that China is accelerating the development of small modular reactors (SMRs), fourth-generation reactors, and nuclear fusion, while simultaneously deepening its control over upstream resources. This dual strategy of domestic localization and export-oriented expansion reflects Beijing’s ambition to strengthen its nuclear value chain and extend its geopolitical influence through long-term technological dependence.
The commentary highlights China’s progress in indigenous reactor development, citing the recent announcement that the third-generation Hualong One (HPR1000) has entered large-scale production. Since the 1980s, China has systematically invested in nuclear self-reliance and international market penetration, with state-owned enterprises such as the China National Nuclear Corporation (CNNC) leading these efforts. A notable example is CNNC’s acquisition of Namibia’s Rössing Uranium Mine in 2019, which further consolidated China’s influence over global uranium supply chains.
In discussing SMR development, the authors point to CNNC’s Linglong One (ACP100) project—the world’s first land-based SMR—which completed its first cold test on October 16 and is expected to begin commercial operation in 2026. The analysis also examines China’s progress in advanced reactor technologies, including the HTR-PM high-temperature gas-cooled reactor, the first fourth-generation reactor to enter commercial operation globally.
On nuclear fusion, the authors underscore China’s long-term ambition to achieve commercial deployment by mid-century. They reference recent milestones such as EAST’s 1,066-second plasma confinement record and HL-3’s achievement of ion temperatures exceeding 117 million degrees Celsius, noting that China has launched a national-level fusion innovation consortium to integrate state-owned enterprises and research institutions.
China’s overseas nuclear engagement is another central theme. Beyond longstanding partnerships in Pakistan, Argentina, and the United Kingdom, China is working to expand its nuclear footprint in Southeast Asia. The commentary notes growing cooperation with Indonesia, as well as government-to-government MOUs signed with Thailand and Malaysia. According to the authors, China’s typical “full-package model”—covering design, construction, fuel services, training, and financing—creates structural dependence that may raise long-term geopolitical risks for recipient countries.
In the context of intensifying U.S.–China competition, the authors stress that Washington is also accelerating its fusion innovation pipeline through the Department of Energy’s milestone-based program and ongoing regulatory reforms. Private-sector progress from companies such as Commonwealth Fusion Systems and Helion Energy further illustrates a rapidly evolving international landscape.
The authors conclude by warning that as China scales its nuclear capabilities and expands its export network, countries adopting Chinese technology may face heightened vulnerabilities in fuel supply, maintenance, and technological dependence—challenges that will shape the future of regional energy security.
