Areva could still be in the running to win contracts for two of its new-generation European pressurised water reactors.

The newspaper les Echos reported on Monday that that this possible order by China, in the interests of its relations with France, might be raised when a representative from the Chinese government visits France on Tuesday to discuss co-operation between the two countries in the nuclear field.

A spokesman for French nuclear power group Areva said: "We have no comment on this rumour. But if it had some basis, it would really be a success for Areva and for France, and that the strategy of being a global partner developed by Areva is right."

Les Echos reported that the construction of nuclear power reactors of a type already in service, referred to as duplication, and a possible partnership for the treatment of nuclear fuel would also be discussed during the visit of the Chinese official.

The French economy ministry had announced the visit on Saturday, saying that it would cover the situation and the outlook for "our co-operation with China in the nuclear field".

Another French publication, La Lettre de l'Expansion, reported on Monday that the president of Areva, Anne Lauvergeon, had said at a recent meeting of the company's works committee that "the Chinese horizon is clearing" and that an order for two EPRs by China "might be "announced soon".

On Saturday, China awarded to Westinghouse, controlled by Japanese group Toshiba, a contract worth several billion dollars (euros) for the construction of four so-called third-generation nuclear reactors.

Areva had also bid for the contract. In mid-day trading here on Monday, the price of shares in Areva was showing a fall of 2.03 percent to 554 euros.

French Economy and Finance Minister Thierry Breton told Les Echos: "In addition to the industrial problems encountered by Areva in completing the EPR in Finland which have been played up here and there, it is undeniable that today, Areva, with this setback in China, is going through a difficult period."

He said that this was despite big efforts made by Areva, particularly in accepting a transfer of nuclear technology to the Chinese.

This was an added reason for the French state, as a shareholder, to be more than ever committed alongside Areva in order "to help it get through this patch", Breton said.

Analysts say that Areva's failure to win a contract for four nuclear reactors, which China awarded to US group Westinghouse on Saturday, had been in the air for some time and turned crucially on Chinese demands for a transfer of technology which Westinghouse was more willing to accommodate.

The value of the contract for the four so-called third-generation reactors is put here at five-eight billion dollars (3.8-6.1 billion euros).

Areva is running 18 months late with construction of its European pressurised water reactor (EPR) in Finland and might have to make a new and substantial provision for this in its accounts.

A CM-CIC Securities, analyst Patrice Lambert de Diesbach said that some circles at the finance ministry were already attacking Areva for political reasons because of the setback in China, associating it with the problem in Finland.

But the decision by the Chinese had nothing to with the reactor in Finland, since the choice of technology was no longer of much significance.

A spokesman for Areva said: "In the long term, China represents a market of about 100 billion euros. That amounts to 36,000 megawatts."

Lambert de Diesback said that "the real market lies elsewhere" and that Areva was targeting the market for so-called duplication.

France has already sold second-generation nuclear power stations to China which has the right to copy them but with parts supplied from France under a process called duplication.

Reffering to estimates that China will need about 30 reactors, he said that the biggest part of the market in future would be for second-generation reactors of a type already used by French electricity generator EDF, the biggest provider of nuclear energy in the world, using existing technology.

Meanwhile Areva hopes to have an easier time in South Africa, which wants to install several reactors in the next few years.

And Lambert de Diesbach said that Areva was strongly placed to promote the EPR in the United States, which was turning back towards nuclear energy.