China's View of the 123 Agreement

Chinese media do not typically devote much effort to covering developments in India. In recent weeks, however, they have produced numerous reports on the U.S.-India civilian nuclear deal known as the “123 Agreement.” The August 13th issue of Study Times, the official journal of the Chinese Communist Party Central Party School, ran a lengthy piece on the strategic implications of the Agreement, under which the U.S. will provide nuclear fuel and technology to India. Aiming its criticism primarily at Washington, rather than New Delhi, the article calls the deal “a dangerous precedent” and accuses the United States of practicing “double standards” by making concessions to India while opposing efforts by Iran and North Korea to develop nuclear weapons. The article also presents the following take on the economic motivation behind the deal:

It goes without saying that the United States is the biggest beneficiary of the Agreement. The General Electric Company of the United States has formed with Hitachi of Japan a joint venture in India to build nuclear reactors. By GE’s estimate, this project alone will contribute to an eight-fold increase in its revenue between 2005 and 2010.