One problem is that these facilities have to be so heavily publicly subsidized. As always, it seems China's interests/intentions will be key for this industry:

Published Dec 24, 2009

Published Thursday December 24, 2009

SHENZHEN, China — China is preparing to build three times as many nuclear power plants in the coming decade as the rest of the world combined, a breakneck pace with the potential to help slow global warming.

China’s civilian nuclear power industry — with 11 reactors operating and construction starting on as many as an additional 10 each year — is not known to have had a serious accident in 15 years of large-scale electricity production. And with China already the largest emitter of gases blamed for global warming, the expansion of nuclear power would at least slow the increase in emissions.

Yet inside and outside the country, the speed of the construction program has raised safety concerns. China has asked for international help in training a force of nuclear inspectors.

The last country to carry out such a rapid nuclear expansion was the United States in the 1970s, in a binge of reactor construction that ended with the Three Mile Island accident in Pennsylvania in 1979. And China is placing many of its nuclear plants near large cities, potentially exposing tens of millions of people to radiation in the event of an accident.

In addition, China must maintain nuclear safeguards in a national business culture where quality and safety sometimes take a back seat to cost-cutting, profits and outright corruption — as shown by scandals in the food, pharmaceutical and toy industries and by the shoddy construction of schools that collapsed in the Sichuan province earthquake last year.

“At the current stage, if we are not fully aware of the sector’s over-rapid expansions, it will threaten construction quality and operation safety of nuclear power plants,” Li Ganjie, director of China’s National Nuclear Safety Administration, said in a speech recently.

A top-level corruption scandal is already unfolding in the nuclear industry.

In August, the Chinese government dismissed and detained the powerful president of the China National Nuclear Corp., Kang Rixin, in a $260 million corruption case involving allegations of bid-rigging in nuclear power plant construction, according to official media reports. No charges have been reported against Kang, who is being held for interrogation.

While none of Kang’s decisions publicly documented would have created hazardous conditions at nuclear plants, the case is a worrisome sign that nuclear executives in China may not always put safety first in their decision-making.

In contrast with its performance in industries like toys, China has a strong safety record in industries like aviation, which receive top-level government attention.

The challenge for the government and for nuclear companies as they increase construction is to keep an eye on a growing army of contractors and subcontractors who may be tempted to cut corners.

“It’s a concern, and that’s why we’re all working together because we hear about these things going on in other industries,” said William Poirier, a vice president for Westinghouse Electric, which is building four nuclear reactors in China.

Philippe Jamet, director of the division of nuclear installation safety at the International Atomic Energy Agency in Vienna, said that China had welcomed foreign inspectors at its reactors and that “they show pretty good operations safety.”

But he added that the international agency was concerned about whether China would have enough nuclear inspectors with adequate training to handle the rapid expansion.

“They don’t have very much staff, when you compare their staff with how many they will need,” Jamet said.

The agency accepted a Chinese request to send a team of international experts to the country next year to assess staffing and training, he added.