The Trump administration is so alarmed that Chinese investors may try to purchase Westinghouse Electric Co.’s nuclear business that U.S. officials are trying to find an American or allied buyer for the company instead, two people familiar with the matter said.
Cabinet members including Energy Secretary Rick Perry and Treasury Secretary Steven Mnuchin have discussed preventing Westinghouse’s purchase by a Chinese-linked company, three U.S. officials said.
For years, Chinese entities have been interested in the nuclear reactor builder, and the company has been a repeated target of Chinese espionage. Westinghouse filed for Chapter 11 bankruptcy protection on March 29 and its parent company Toshiba Corp. is seeking a buyer for its money-losing reactor business. Toshiba said it replaced Westinghouse Chairman Daniel Roderick with Mamoru Hatazawa. Roderick resigned all posts at the U.S. unit, according to a person familiar with the matter, who asked not to be identified because the details aren’t yet public.
Trump administration officials and members of Congress are concerned the bankruptcy filing could allow a bid from an investment group with hidden Chinese backing, one of the officials said. All of the officials requested anonymity because of the sensitivity of the matter.
President Donald Trump will meet with Chinese President Xi Jinping for the first time at his Mar-a-Lago resort in Florida on Thursday and Friday. A second official said the Trump administration is preparing for Westinghouse’s bankruptcy to come up in the talks.
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