A GREENING CHINA WANTS NEW ENERGY DEAL WITH U.S.
Times are tough. That’s not news. Credit is tight. Not news either. Investing in New Energy in China is a good bet. News?
Not to GE Energy China or Caterpillar’s China division.
Kate Wang, spokeswoman, Caterpillar: "This economic downturn is not going to stop the world's need for better infrastructure and more energy…China's economic growth will still outpace any other major market. The development of the complete Caterpillar business model in China is progressing rapidly…"
GE Energy China’s president said his company is “bullish” on New Energy there and not deterred by the current financial crisis.
Jack Wen, president, GE Energy China: "Meeting energy demand while reducing the carbon footprint is still a global need. It shouldn't be significantly impacted by shorter-term financial fluctuations…"
Why is he so confident?
This is NEWS: If China meets the New Energy standards its leaders have set, New Energy in China will be a $200 billion market in 2010 and a $555 billion market by 2020.
This is BIG NEWS: Reportedly, it’s more than just business, it’s international politics.
Liu Feitao, professor, University of International Relations in Beijing: "As strategic partners, Beijing and Washington want to find a new foothold to facilitate closer cooperation and new energy is undoubtedly providing an excellent platform…Both sides need to understand that their alliance in energy and environmental protection is vital not only to bilateral economic and trade relations but also to the world's long-term sustainability…"
The Chinese astutely took note when, during his campaign, President-elect Obama said that climate change demands the U.S. and China, the world's biggest oil consumers and greenhouse gas emitters, quickly develop better cooperation.
Bush administration Secretary of the Treasury Henry Paulson has long been working toward better U.S.-China cooperation, as have his counterparts in China. It is the new administration, however, that has identified New Energy as the sector in which both countries can readily see a partner.
Li Wei, senior researcher, Chinese Academy of International Trade and Economics Cooperation: "The past 30 years of China-US business relations saw both cooperation and friction. New energy will undoubtedly be one of the driving engines that will uplift relations…"
The Chinese are hungry for U.S. New Energy technology and the U.S. can make real progress with China on many fronts by offering it.
James Zimmerman, chairman, American Chamber of Commerce in China: "I think there is going to be some change…It is critical that the US and China cooperate…It's going to take commitment from the leadership of the Obama administration as well as President Hu Jintao to really push that forward…"
The plan. (click to enlarge)
Green industries promising in China
Li Xiang and Sun Xiaohua, December 15, 2008 (China Daily)
Kate Wang, spokeswoman, Caterpillar; Jack Wen, president, GE Energy China; China National Development and Reform Commission; Liu Feitao, professor, University of International Relations in Beijing; Li Wei, senior researcher, Chinese Academy of International Trade and Economics Cooperation; James Zimmerman, chairman, American Chamber of Commerce in China; Hu Jintao, President, China; Barack Obama, President-elect, U.S.;
China observers China’s New Energy resources and industries are ideal investments.
Not doing too well with sun yet. (click for the complete Global Green 2008 Global Solar Report Card report on China)
- Caterpillar expects its 2008 energy-development revenue in China to be $2 billion and to double by 2010.
- December 2008: Chinese Vice-Premier Wang Qishan and US Treasuray Secretary Henry Paulson signed agreements on energy cooperation at the Strategic Economic Dialogue (SED) Round 5.
- Beijing 11th Five-Year Plan (2006-10): Increase New Energy from 2.5% of consumption to 10% by 2010.
Chinese Vice-Premier Wang Qishan and US Treasuray Secretary Paulson created a cooperation agreement between China's southwestern Chongqing municipality, Denver in the US and Ford for development of electric and hybrid vehicles.
- Solar, wind, hydro, biofuel and clean coal investments are all predicted to bring good returns.
- Caterpillar is known as a construction equipment manufacturer, but is also one of the world's leading energy development companies.
- GE Energy China has placed 1,000+ gas, steam, hydro and wind turbines in China and owns 37 licenses for gasification technology.
- GE is investing in cleaner coal technology, wind and solar power and biofuel projects and projects its China New Energy investment to be $15 billion by 2010.
- China spent 48 billion yuan in 2007 on conservation, New Energy projects and forestation.
- Silicon Valley venture capital is also going to work in China New Energy, especially solar.
Doing great with wind. (click to enlarge)
- Yang Fuqiang, chief representative, US-based Energy Foundation in Beijing: "It is going to be a new area for closer China-US cooperation…China needs expertise and technologies from the US and the US views China as an extremely promising market."
- Jack Wen, president, GE Energy China: "The opportunity is huge…Our energy strategy is diversity. Wind, solar, coal and nuclear all should be a part of the equation."