Seeking to Expand Its Lead in Fusion Technology, China Accelerates Construction on New Reactor Project

China is racing ahead to expand its global lead in fusion technology. On April 29, IEEE Spectrum reported that construction had accelerated on a likely fusion research facility in Mianyang, Sichuan, with satellite images indicating that the structure closely resembles the U.S. National Ignition Facility at the Livermore National Laboratory in California.

The project underscores Beijing’s growing investments in fusion technology to power the country’s artificial intelligence (AI) sector and supplant the United States as a world leader in science and technology.

Satellite Images Show Rapid Construction of Possible Laser-Based Fusion Reactor in Sichuan Province

According to Spectrum, the project is likely a laser-based fusion facility, which uses several high-energy lasers to generate nuclear fusion by simulating the internal conditions of large stars. Other estimates suggest that the facility could eventually house a Z-pinch machine, which uses electrical currents to compress plasma into a dense column — fusing atomic nuclei together to generate energy.

The construction project complements several of China’s recent fusion programs — the Experimental Advanced Superconducting Tokamak (EAST) and the Comprehensive Research Facility for Fusion Technology (CRAFT). Both programs are intended to test future fusion technologies for broader adoption and have informed the construction of China’s first hybrid nuclear reactor — which is slated to open by 2030 and will use fusion techniques to initiate fission and boost its capacity beyond those of traditional nuclear programs.

China Expands Focus on Pioneering Energy Generation Capabilities

China has rapidly expanded its support for next-generation energy research, viewing both fusion and fission technology as key to future energy markets and powering technologies such as AI. While China continues to produce much of its energy via coal, Beijing has offered significant support for fusion research — having spent $1.5 billion per year, in contrast to the $763 million spent by Washington in 2023. These investments have allowed China to become the global leader in patent filings related to fusion technologies while supporting a largely self-sufficient supply chain that has dramatically accelerated reactor construction.

Fueled by its domestic research and development pipeline, China has launched a wave of reactor building, remaining on pace to construct 150 reactors between 2020 and 2035 and initiating the world’s first fourth-generation nuclear reactor in December 2023. This pace has allowed Beijing to expand and harden its grid to power energy-intensive AI development and deployment — a trend that has also benefited the nuclear industry’s efforts to use AI to enhance safety and efficiency. Along with promoting cost-competitive small modular reactor technology, China has also launched nine nuclear reactors in four countries over the past decade, allowing Chinese firms to meet growing global electricity demand.

United States Must Expand Investment in Energy Research and Production

In response, the United States should expand its funding for fusion technology, recognizing its potential role in transforming energy generation to fuel economic growth and power energy-intensive AI development. Along with reversing cuts to the National Science Foundation, the Trump administration should work with Congress to direct additional funding to the Department of Energy (DOE) to pursue fusion breakthroughs and capitalize on the research capabilities of the country’s national laboratories.

Moreover, the administration should prioritize investments in deploying next-generation nuclear power. These efforts should include directing the National Energy Dominance Council to prioritize nuclear development and working with Congress to fund DOE’s Loan Program Office, which seeds private sector investment in energy innovation.

Jack Burnham is a research analyst in the China Program at the Foundation for Defense of Democracies (FDD). For more analysis from Jack and FDD, please subscribe HERE. Follow Jack on X @JackBurnham802. Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.