THE ongoing confusion surrounding Hinkley Point C has continued this week with claims of a get-out-clause for the UK Government surfacing.

It has been reported that Hinkley's sister site in Flamanville could give new Prime Minister Theresa May a basis to pull out of the deal for the £18 billion nuclear power plant if the technology at the site in France - which is the same as would be used at Hinkley - does not work.

The news came after the Chinese ambassador for the UK Liu Xiaoming said relations between the two countries were at a 'crucial historic juncture' because of the delay.

As reported, Theresa May called for a last-minute review of the power plant after board members for EDF gave the green-light for the energy firm to start construction at the site, near Bridgwater, raising further doubts about the project.

However, The Times reported that two years ago, the European Union approved a subsidy scheme that the UK Government and China General Nuclear Power Group (CGN) agreed to underwrite the project.

This resulted in many critics slamming the agreement, as it was revealed that the Treasury had to guarantee up to £17 billion in loans.

However, under the EU ruling, according to article 56, this guarantee was conditional on “objective evidence” that EDF’s reactor technology, which is set to be used at Flamanville, worked. This must be proven by Flamanville completing its “trial operation period” by the end of 2020.

The Times reported that at worst, EDF would have to dismantle the reactor vessel and start again, which would push it beyond the projected 2018 start-up date as well as the 2020 deadline for the Hinkley finance agreement. If Flamanville cannot prove itself, EDF would be forced to repay any loans that benefited from government support.

If Theresa May decided to pull out of the Hinkley project, it would cost thousands of jobs in the area as well as an anticipated multi-million pound boost for the local economy.

However, it would also spark a huge diplomatic row with China, which is helping to finance the project.

Writing in the Financial Times, Liu Xiaoming, urged Britain to give the go-ahead.

Urging a quick decision, he outlined his country's experience in managing nuclear plants and Britain's energy needs.

He said: "Right now, the China-UK relationship is at a crucial historical juncture.

"I hope the UK will keep its door open to China and that the British government will continue to support Hinkley Point - and come to a decision as soon as possible so that the project can proceed smoothly."

He added that it had not been easy for the two countries to come this far, saying: "As long as both sides cherish what has been achieved and continue to expand and deepen our co-operation across the board, bilateral relations will maintain their strong momentum and work for the well-being of both the Chinese and British people."