A merger is moving forward between China's major nuclear power producer and the country's sole nuclear engineering firm. Officials say the partnership will improve safety... and build a high-quality and sustainable nuclear power industry. CGTN's Zheng Yibing reports.

The news of the big merger came out on January 31st. It's the third state-owned enterprises in China's energy sector looking to restructure since 2015.

PAN JIANMING SPOKESPERSON, CNNC "This will help improve the supply-side reform in the nuclear power industry and coordinate the development of China's third- and fourth-generation nuclear power technologies."

This is a very recent effort by Chinese SOEs to tackle a rising corporate debt, reduce excess capacity, and make more profits through mergers. With these, CNNC has been making steady steps in what's known as Hualong One technology, a domestically developed third-generation reactor. It was designed by CNNC and China General Nuclear Power Group. On January 28th, the installation of major components in China's first such demonstration nuclear power project was completed in south-east China's Fujian province. This reactor is expected to start up next year. This also marks an important step for Hualong One technology, which is expected to be exported.

ZHENG YIBING BEIJING Now, greater awareness has been devoted to absolute safety. This awareness will benefit both the environment and people.

China is pursuing stricter regulation in its nuclear power sector, with a nuclear safety law taking effect on January 1st this year. And the country is looking to nuclear options, to ease air pollution and winter heating woes. CNNC recently conducted a trial run on a small, dedicated district heating reactor named Yanlong.

PAN JIANMING SPOKESPERSON, CNNC "It's estimated that each 400-MW Yanlong unit can heat 200,000 three-bedroom homes. That's about 20 million square meters."

The company says it is making further preprations for the technology to benefit people in different ways. Other technologies on the way are so-called small units, that can possibly help cure cancer. ZHENG YIBING, CGTN, BEIJING.