Forum Views ()
Forum Replies ()
Read more with google mobile :
US, Europe look to China for clean energy sales
Yahoo!
My Yahoo!
Mail
More Yahoo! Services
Account Options
New User? Sign Up
Sign In
Help
Yahoo! Search
web search
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Singapore
Asia Pacific
World
US, Europe look to China for clean energy sales
By JOE McDONALD,AP Business Writer -
Monday, May 17
Send
IM Story
Print
BEIJING – U.S. leaders want China's clean energy boom to drive technology exports and are sending a sales mission to Beijing this week. But Beijing wants to create its own suppliers of wind, solar and other equipment and is limiting access to its market, setting up a new trade clash with Washington and Europe.
China passed the United States last year as the biggest clean power market, stoking hopes for Western sales of wind turbines, solar cells and other gear. But U.S. and European companies find that while Beijing welcomes foreign technology, it wants manufacturing done here and know-how shared with local partners. In the wind industry, foreign suppliers with factories in China say they are shut out of major projects.
"China is very keen on being able to depend on themselves," said Frank Haugwitz, a renewable energy consultant in Beijing.
U.S. Commerce Secretary Gary Locke says clean energy sales to China can help fulfill President Barack Obama's pledge to double U.S. exports over the next five years and create 2 million jobs. Locke is leading a group of 24 American suppliers to Beijing and Shanghai this week to drum up business.
"There is an incredible opportunity for companies all around the world to help China meet its energy goals of reducing greenhouse gas emissions, becoming more energy efficient," Locke said in Hong Kong Sunday at the start of the trade mission.
"China, given the incredible challenges that it has, should be, in my view, taking the best technology from wherever _ whether it's China, the United States, Europe, Japan or anywhere else," he said. "Of course, we believe that in many areas, the United States is the world's leader in some of this technology."
But Chinese leaders want clean energy to be one of a series of emerging industries with their companies playing a leading global role. They are using regulations to ensure the bulk of Chinese sales go to local producers.
"There is a clash there that I think is going to become more and more prominent unless both sides come to some agreement," said Jim McGregor of APCO Worldwide Inc., a consulting firm, and a former chairman of the American Chamber of Commerce in China.
China already is embroiled in an array of disputes with Washington, Europe and others over currency, trade in goods from steel to shoes to chicken and Beijing's industrial policies that favor Chinese companies in areas including computer security and telecoms at the expense of foreign competitors.
Washington and Beijing have so far avoided a formal dispute over clean energy and have pledged to cooperate in research.
The potential Chinese market is huge: Beijing invested $34.6 billion in renewable energy last year, nearly double U.S. spending of $18.6 billion, according to a report by the Pew Charitable Trusts.
Foreign suppliers range from General Electric Co. and Europe's Siemens AG to Denmark's Vestas Wind Systems A/S and smaller startups. Products run the gamut from 20-story-tall wind turbines to generators powered by chicken manure.
"Low-carbon development in China represents an enormous opportunity for American businesses," said David Sandalow, an assistant U.S. energy secretary, in an April statement to the U.S.-China Economic and Security Review Commission.
The biggest impact of China's industrial curbs has been in wind. Beijing has declared it a strategic industry and wants to build local turbine producers such as Goldwind Science & Technology Ltd. and Sinovel Wind Co. into global players. Chinese companies also get grants and tax breaks to develop solar, biomass, fuel cell and other technology.
The foreign share of China's wind turbine market plunged from 70 percent in 2005 to 12 percent last year, according to the European Union Chamber of Commerce's Renewable Energy Working Group. The chamber complains that Chinese authorities help local companies by basing purchases on upfront prices and ignoring a project's lifetime cost, where more durable foreign equipment wins.
Beijing has aggressive plans to promote renewable energy to curb pollution and reliance on imported oil and gas, which communist leaders see as a strategic weakness.
A 2005 government plan called for at least 15 percent of China's power to come from wind, solar and hydropower by 2020.
"China is emerging as the world's clean energy powerhouse," said the Pew report.
Beijing has faced complaints by the United States, Europe and others over its efforts to promote Chinese companies and press foreign suppliers to hand over technology in other areas including computer security and mobile phones.
Until last year, Beijing required that wind turbines sold in China contain 70 percent Chinese-made parts. That rule was scrapped in September but only after GE, Vestas and others had set up factories in China.
Beijing can limit access to government-financed projects because it has yet to sign the Government Procurement Agreement, a treaty that extends World Trade Organization free-trade rules to official purchases and would require it to treat suppliers equally.
In a written response to questions, the U.S. Embassy in Beijing said Washington has not received formal complaints from American companies about China's wind policies and they are not considered a trade issue.
In solar power, China already is a top exporter of photovoltaic cells but its factories rely on foreign-made production machinery. Beijing is promising Chinese companies support to develop their own.
"This dependency is something China would like to reduce," said Haugwitz.
Beijing's vision of the foreign role in its industry is reflected in a plan by Phoenix, Arizona-based First Solar Inc., the leading maker of solar cells, to build the world's biggest solar power project on 25 square miles (65 square kilometers) of China's northern grasslands.
First Solar says it will manufacture equipment in China using new "thin film" technology that local rivals have yet to develop and will train Chinese partners.
"The government's position is, you can come in but you have to offer us something more advanced than we already have or it's going to be more difficult," said Damien Ma, an analyst for Eurasia Group in Washington.
Industry analysts point to Chinese-foreign joint research as a possible way to ease trade strains and maintain access to China's market.
The U.S. and Chinese governments agreed to last year to launch a joint $150 million research venture on clean vehicles, more efficient buildings and other technologies.
Last year, Germany's SolarWorld AG agreed to provide technology to China's Suntech Power Inc., the second-biggest maker of solar cells after First Solar. General Motors Co. and others have research ventures with Chinese companies and universities on alternative fuels and other fields.
Beijing's need for technology means foreign companies are likely to continue to get market access in exchange for it, Ma said.
"There is no way they are going to fully close the sector," he said.
___
Associated Press writer Min Lee in Hong Kong contributed to this report.
Recommend
Send
IM Story
Print
Related Articles
Iran seeks to boost Brazil trade as sanctions loom Reuters - 29 minutes ago
Israel opens largest desalination plant of its kind Reuters - 58 minutes ago
BAY STREET-China may be next big test for Canadian stocks Reuters - 1 hour 26 minutes ago
Saudi regulator fines six firms over disclosure Reuters - 1 hour 36 minutes ago
US-BUSINESS Summary Reuters - 2 hours 1 minute ago
News Search
Top Stories
Portugal takes more austerity measures
EU's Barroso calls on G20 to agree bank levy
Portugal announces more austerity measures
Boy survivor of Libya air crash 'stable but confused'
Asia steps into Cannes spotlight
More Top Stories »
Related Full Coverage
China Economychina economy
All Full Coverage »
ADVERTISEMENT
Most Popular
Most Viewed
Most Recommended
Boy survivor of Libya air crash 'stable but confused'
Portugal takes more austerity measures
Pope rallies priests as crowds flock to Fatima
Asia steps into Cannes spotlight
Scientists stunned as grey whale sighted off Israel
More Most Viewed »
Scientists stunned as grey whale sighted off Israel
Lack of sleep linked to early death: study
UN fears 'irreversible' damage to natural environment
Freddie Mac asks for fresh 10.6 billion dollar bailout
Earth may be too hot for humans by 2300: study
More Most Recommended »
Elsewhere on Yahoo!
Financial news on Yahoo! Finance
Stars and latest movies
Best travel destinations
More on Yahoo! News
Home
Singapore
Asia Pacific
World
Business
Entertainment
Sports
Technology
Subscribe to our news feeds
Top StoriesMy Yahoo!RSS
» More news feeds | What are news feeds?
Also on Yahoo
Answers
Groups
Mail
Messenger
Mobile
Travel
Finance
Movies
Sports
Games
» All Yahoo! Services
Site Highlights
Singapore
Full Coverage
Most Popular
Asia Entertainment
Photos
World Cup 2010
Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Terms of Service |
Privacy Policy |
Community |
Intellectual Property Rights Policy |
Help
Other News on Sunday, 16 May 2010 Iran says conditions right for nuclear fuel deal
Belarus police break up gay pride march
|
Key Mexican ruling party politician feared abducted
|
U.N., Congo snagged on timing of peacekeeper exit
|
Bangkok descends from bustling metropolis to war zone
|
Thai PM defends crackdown as bodies lie on streets
Thai violence spirals as both sides seek reinforcements
Officials: US missiles kill 5 in NW Pakistan
ASEAN chair Vietnam calls for restraint in Thailand
Pakistan holds two over funding Times Square plot
Australian finishes round-the-world sail at age 16
US men on trial in Pakistan deny terrorism charges
Japan prosecutors quiz ruling party kingpin
Thai PM defends deadly army crackdown in Bangkok
Clashes, blasts rattle besieged Bangkok; 22 dead
US-ENTERTAINMENT Summary
Hudson to play Winnie Mandela amid legal threats
Woody Allen ushers "Tall Dark Stranger" into Cannes
British director Leigh's "Another Year" at Cannes
Woody Allen ushers Tall Dark Stranger into Cannes
|
Hudson to play Winnie Mandela amid legal threats
|
Cathay plane escorted to Vancouver after bomb hoax
|
US-TECH Summary
Google to stop selling smartphone online
Curfew to begin in parts of Bangkok from Sunday
French woman flying home after Iran trial: France
|
Eight feared dead in Suriname air crash
|
North Korea boats draw warning shots from South
|
Militants free 50 hostages in northwest Pakistan: official
|
Belfast flights to be halted because of ash cloud
|
Key Mexican ruling party politician feared dead
|
Palin joins Arizona gov. to defend immigration law
U.S. Episcopal Church consecrates lesbian bishop
Rousseff ahead in Brazil presidential race: poll
|
Red Cross to evacuate Red Shirt women, children
NATO troop member dies in Afghan insurgent attack
Eyes flashing, robot conducts wedding in Tokyo
Thai PM considering curfew after 25 die in clashes
Malaysia's Borneo polls test ruling coalition
HK election aims to pressure Beijing for democracy
NKorean navy boats violate sea border amid tension
North Korea boats draw warning shots from South
Google says mistakenly got wireless data
|
Chile charges, frees Pakistani in U.S. embassy case
Beer, betrayal, a lost iPhone in Apple device tale
|
Google to stop selling smartphone online
|
Teen Girl Completes Solo Round-The-World Sail
87-Year-Old Woman Arrested For Selling Crack
Burlington Vermont Diocese Settles 28 Molestation Lawsuits For $20 Million
Iraq recount fails to overturn Allawi election win
Al Qaeda's Iraq network replaces slain leaders
UK and Ireland shut some airspace due to ash cloud
|
Sudan security arrest opposition leader Turabi
Sudan army says killed 108 Darfur rebels
Muscle Mass Found To Be Boosted By Combining Resistance Excercise, Blood Flow Restriction
Iran in talks with Brazil to resolve nuclear deadlock
|
Iraq recount fails to overturn Allawi election win
|
Israeli left flies flag to urge end to occupation
|
Mauritania starts trials of al Qaeda suspects
|
Somali fighting kills 24
|
Yemen Qaeda threatens attacks on U.S. over cleric: website
|
Pope tells crowd, priests must resist temptation
|
17,000 Japanese circle US base in peaceful protest
India: 2 dead, 9 injured in train station stampede
Thai government says army crackdown will continue
Red Shirts ready to negotiate with Thai government
Japan PM's dilemma over U.S. base deepens before poll
Calif. agents use award ruse to reel in fugitives
Episcopal church ordains its 2nd openly gay bishop
Taiwan ex-official: Secret talks with China set up
Thailand cancels curfew despite Bangkok clashes
Australian round-the-world teen sailor had doubts
US, Europe look to China for clean energy sales
Father-son film in war-torn Chad lights up Cannes
Father-son film in war-torn Chad lights up Cannes
|
Tavernier brings 16th century thriller to Cannes
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights