A tractor mows a field on the site where the Hinkley Point C nuclear power station will be constructed in Bridgwater in south west Britain, in this file photograph dated October 24, 2013.[Photo/Agencies]

This support will assist in attracting financing packages to the capital expenditure of the project, as well as helping building the environment of diversification of investment for energy infrastructure.

"It is timely and suits the Chinese investors very well to assess their opportunities for Hinkey Point and also other nuclear infrastructure investment and build opportunities," Bovis said.

"The support, most probably, has clear European state aid requirements and will be seen as a fundamental injection of confidence to the EDF and its stakeholder partners who are involved in financing and delivering the project," he said.

Meanwhile, Amber Rudd, the UK's Secretary of State for Energy, told the Financial Times during a visit to Beijing that Britain is keen to cooperate with Chinese partners for a separate nuclear project using Chinese indigenous nuclear technology, at Bradwell nuclear power station, in Essex.

"They very much want to have their design up and running in the UK. That's because we have such tough standards of regulation, everyone can have confidence they are safe and show that they have a great operation to take elsewhere," Rudd said.

Shepherd said that Rudd's announcement is very positive for the Chinese, as Chinese nuclear firms want to export their technology, and building a project in the UK will be a good opportunity for it to demonstrate that its technology can be used safely and can then be exported to other countries.

Keith Burnett, vice-chancellor of the University of Sheffield, who is a member of Osborne's China visit delegation, said that he is very optimistic about UK China nuclear cooperation, both at Hinkley and other nuclear projects.

"A new generation of nuclear power capabilities will require expensive, long-term investment. Our Chinese partners are dynamic, eager to increase economic value, and have a great appetite for risk, making them ideal partners in the development of long-lasting UK energy infrastructure," Burnett said.

"Chinese investors recognise technical expertise, and there is vast potential for partnership with Chinese companies that will support innovations in UK advanced manufacturing," he said.

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