Nonproliferation advocates warn that recycling waste would generate weapons-usable plutonium, posing a security risk and potentially stirring a nuclear rivalry in East Asia.
A new Harvard University study, co-authored by a senior Chinese nuclear engineer, gives another reason against reprocessing - that it doesn't make economic sense.
The study says China could save tens of billions of dollars by storing the spent fuel, and the savings could be spent on research and on building nuclear reactors.
"China has the luxury of time, as it has access to plenty of uranium to fuel its nuclear growth for decades to come, and dry casks can provide a safe, secure, and cost-effective way of managing spent fuel for decades to come, leaving all options open for the future," the study says.
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China has aimed for a "closed" nuclear cycle - recycling reactor fuel instead of using it just once and disposing of it - since the early 1980s.
The State Administration of Science, Technology and Industry for National Defense told The Associated Press that remained China's policy, to enhance its use of uranium resources and to cut production of nuclear waste.
While reprocessing reduces the level of radioactivity in nuclear waste, The Union of Concerned Scientists - an advocacy group that was founded by scientists and students at the Massachusetts Institute of Technology - says it does not reduce the need for storage and secure disposal of waste.
Some within China's own nuclear establishment are also questioning the merits of reprocessing as the nation mulls huge capital investments in the sector, US-based experts say.
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The construction of new plants resumed after the Chinese government which put the brakes on nuclear power plant approvals following the Fukushima accident in Japan in 2011permitted resumption after a safety review.
The floating nuclear power plants were aimed at improving power supply to the island areas in the South China Sea, (SCS) despite the maritime dispute.
China claims all most all of the SCS. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counter claims over the islands.
Justifying the setting of floating nuclear plants, Wang said diesel generator is currently the main power source for China's offshore operation and the daily lives of residents on the Nansha and Xisha Islands, the Chinese names for Spratly and Paracel islands in the SCS.
He also played down concerns over nuclear plants in the high seas and coastal areas in the aftermath of the Japan's Fukushima power plant.
Floating power stations will aim to promote the exploitation of oil and gas resources and provide safe and efficient power supply to remote islands in the South China Sea, Wang said.
"If it is safe to build nuclear power plants in coastal areas, it is also not a problem to build them inland," Wang was quoted as saying by Global Times in an interview to China National Radio.
Nuclear power development is one of the best ways to reduce emissions of carbon-di-oxide and major pollutants, he said, adding that China has an urgent need for inland nuclear power plants to meet power demand and ensure stable electrical supply.
Wang said the third-generation nuclear power technology has greatly promoted the safety of the reactors.
Three inland nuclear reactors with an investment of over 10 billion yuan have already obtained approval from the National Development and Reform Commission.
"Technology is not a problem. The difficulty lies in letting the public accept the plan," an employee from the China National Nuclear Corporation (CNNC) told the Global Times.
The population density in the three sites is much higher than in European countries while the atmospheric dispersion conditions for possible radioactive emissions is not as ideal as the US.