Hot testing of Chinese SMR under way

China's state nuclear corporation is conducting hot functional tests on the ACP100 small modular reactor at Changjiang in Hainan province, simulating operating temperatures and pressures before fuel loading planned within the year. The 125 megawatt electric unit has been under construction since July 2021, with cold functional testing completed in October 2024. The ACP100, also called Linglong One, represents China's first deployed SMR design and follows the recent commercial operation of a Hualong One large reactor at the same site.

Where this fits

This demonstrates China's advancing capability in nuclear manufacturing and deployment at pace. While Australia debates whether to build nuclear capacity at all, constrained by a legislative ban on nuclear power, China is executing a staged rollout of both large and small modular reactors. The energy security implication is twofold: China is building firm, low-emission generation to secure its own grid independence, while simultaneously positioning itself as the global technology leader in next-generation nuclear, a space Australia cannot enter and will eventually need to source from elsewhere if the ban lifts.

What it means

Australia faces an asymmetric strategic position. China is diversifying away from weather-dependent renewables into firm dispatchable nuclear power, reducing grid vulnerability and foreign fuel dependence. Australia, by contrast, is committing to a renewables-heavy grid that requires gas firming, transmission overbuild, and battery storage, all of which carries higher whole-system cost and leaves the country more exposed to supply-chain coercion in critical materials and components. If the nuclear ban is ever lifted, Australia will enter a technology market where China already holds the lead.