THE U.S., CHINA & NEW ENERGY

Clean energy seen as "bright spot" for US-China; Clean energy seen improving tense relations/GE, Alcoa sign deals with Chinese companies
Timothy Gardner and Ayesha Rascoe (w/Chris Buckley, Russell Blinch and Philip Barbara), January 18, 2011 (Reuters)

"Cooperation on clean energy could be a high point in U.S.-China relations leading to benefits for both countries, government and business officials said ahead of a summit between Chinese President Hu Jintao and President Barack Obama.

"Disputes between the world's two largest economies and energy consumers over China's wind power subsidies and its slowdown in exports of rare earths minerals, used in everything from wind turbines to cell phones, have dominated headlines in recent months."

In collaboration with the U.S., China has turned itself into the best country in the world to build renewables because... (click to enlarge)

"The countries are also having wider arguments…But with rising concerns about oil prices, now above $90 a barrel, energy security, and global warming, officials said the world's biggest developed country and the biggest developing country have much to learn from each other. Progress can be made on sharing technologies on efficiency, cleaner coal, and development of renewables like wind and solar power…[P]ressure on both countries to reduce greenhouse gas emissions and reel in fossil fuel demand may push them to overcome…differences…

"…[C]ommon interests between the two countries make clean energy an issue ripe for nurturing close ties…[B]oth governments unveiled plans to continue joint research and development in clean energy -- electric vehicles, clean coal and energy-efficient buildings -- through the U.S.-China Clean Energy Research Center. First announced in 2009, the centers will be supported by at least $150 million from private and public interests over five years…In addition, several deals were signed between U.S. and Chinese companies…"

...climate change knows no borders. (click to enlarge)

"But officials said several hurdles have to be cleared to prevent competition between the two powers from hurting clean energy efforts…Jon Huntsman, the U.S. ambassador to China, said both countries need to continue their cooperative effort to protect [high tech clean energy] intellectual property rights in China…

"Justin Yifu Lin, a chief economist at the World Bank, said more research and development needs to be done on alternative energies like wind and solar to get them off government subsidies. Until then bickering about subsidies strain relations, as the wind power case shows…[D]elicate balances will have to be struck between American companies that have new technologies they haven't fully developed and Chinese ones that want to bring them to their huge market…In many cases American companies have decided a certain amount of technology transfer is in their interest."