The station will allow British spies to monitor computer systems at Chinese-built nuclear plants to prevent possible cyber-attacks if diplomatic relationships between the UK and China were to break down.
According to The Times, China is still seen as a serious threat to British interests, especially in cyberespionage, and ministers are seeking to allay fears over its likely involvement in building new nuclear power plants at both Hinkley Point and Bradwell.
Security sources say that the Treasury is “driving the deal and ignoring legitimate concerns”.
These include fears that “trapdoors” could be installed in software, meaning Beijing could seize control of a UK nuclear plant if diplomatic relationships between the two countries were to break down.
The intelligence agencies have been consulted over the deal, but have not made their involvement public until now.
A Government spokesman said: “GCHQ has a remit to support the cybersecurity of private-sector-owned critical national infrastructure projects, including in the civil nuclear sector and nuclear new builds, when invited to do so by the lead government department involved.”
Chancellor George Osborne recently pledged a £2 billion guarantee to the Hinkley Point C new nuclear plant ahead of a final investment decision for the long-awaited project.
A government statement said the guarantee marks the start of an “unprecedented” collaboration between the UK and China on the construction of new nuclear power stations.
After three years of protracted government negotiations EDF seems set to make a final investment decision this week alongside its Chinese investment partners as part of an official Chinese state visit to the UK this week.
Under the terms of the deal the Chinese companies are expected to help help lead investor EDF Energy cover part of the Hinkley project’s £24 billion cost as well as a second EDF plant at Sizewell.
In addition the UK will give China the green light to construct its own prototype nuclear reactor in Bradwell, Essex.