South Korea’s Electric Power Corp could potentially acquire Toshiba’s Westinghouse

Japan and the U.S. are coordinating to prevent the Chinese from acquiring it.

The Japanese government and the Trump administration are coordinating to ensure that Toshiba Corp’s Westinghouse Electric Co bankruptcy does not lead to U.S. technology secrets and infrastructure falling into the hands of Chinese.

Last month, Toshiba’s Westinghouse had filed a bankruptcy having been hit by cost overruns amounting to billions of dollars.

The bankruptcy is likely to lead to the eventual sale of Westinghouse’s nuclear business in the United States.

The Chinese have been sniffing around the deal as potential buyers.

“It’s a real concern; they’ve wanted to get their hands on power grid and nuclear infrastructure for a long time,” said an official in the U.S. administration.

Xi Jinping, China’s President is set to arrive in the U.S. for a summit with U.S. President Donald Trump.

“You go into a situation like the Toshiba situation where there’s financial chaos. There’s a chance that things can happen in a way that’s dangerous,” said the official.

Significantly, since nuclear technologies have dual use, they can be used for civilian and military use as well.

“There are ways that are being looked at, both formally and informally, to make sure there is no threat to critical infrastructure,” said the official.

Hiroshige Seko, Japan’s trade minister has formally denied the talks taking place between the U.S. governments and Japan.

In a separate briefing, Taro Aso, Japan’s finance minister, stated that during U.S. Vice President Mike Pence visit this month to Japan he is not expected to touch base on Toshiba.

South Korea’s state-controlled Korea Electric Power Corp (KEPCO) could potentially acquire Westinghouse.

Unlike China, Japan and South Korea are allies of the United States.


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