Lets start by saying that this isn't cold fusion, and it's not even producing more energy than is going into it. But...the Chinese did build a fusion reactor, and apparently no one knew about it.
The reactor is a smaller version of the 10 billion Euro International Thermonuclear Experimental Reactor (ITER) just begun in France (and not scheduled for completion for 10 years). China and the United States are both partners in the ITER project, having contributed 10% of the cost of construction.
So this Chinese thing is quite a surprise, though, given their desire to usher a billion people into the middle class, we probably should have expected that they'd be working on something like this. It's not like they're afraid of large projects (see Three Gorges Dam).
I mean, coal is evil, oil is evil, nuclear is evil. Fusion is what we've been waiting for, that is, if the Chinese agree to share the technology with us.
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