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Cablegate: Energy and Commerce Secretaries Chu and Locke Lead

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PP RUEHAST RUEHCN RUEHDH RUEHGH RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
RUEHSL RUEHTM RUEHTRO RUEHVC
DE RUEHBJ #3182/01 3310954
ZNR UUUUU ZZH
P 270954Z NOV 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 6961
INFO RUEHOO/CHINA POSTS COLLECTIVE
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RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
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RHEBAAA/DEPT OF ENERGY WASHINGTON DC
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UNCLAS SECTION 01 OF 05 BEIJING 003182

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SENSITIVE
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E.O. 12958: N/A
TAGS: OVIP PREL PGOV ECON PARM MARR SENV ENRG KGHG CH

SUBJECT: ENERGY AND COMMERCE SECRETARIES CHU AND LOCKE LEAD
U.S.-CHINA CLEAN ENERGY ROUNDTABLE IN BEIJING

REFTEL: A: BEIJING 3180
B: BEIJING 2865

Summary
-------
1. (U) In an effort to promote clean energy cooperation during the
U.S. President's first visit to Beijing, U.S. Energy Secretary
Steven Chu and Commerce Secretary Gary Locke led a senior-level
U.S.-China roundtable discussion on clean energy on November 16.
The roundtable included distinguished panelists from both countries'
government, business, NGO, and academic sectors, and was co-chaired
by China's National Energy Administration (NEA) Deputy Administrator
LIU Qi and attended by China's Minister of Science and Technology
WAN Gang. Senior U.S. and Chinese government officials echoed a
common theme: both countries must leverage each other's strengths
and pool resources to meet the difficult challenges associated with
clean energy development. CEOs from several leading U.S. and Chinese
energy firms, such as First Solar, Peabody, Suntech, BYD, and ENN,
asked government leaders to avoid protectionist measures that could
potentially impede clean energy technology trade and suggested that
Beijing and Washington coordinate on favorable policy incentives
that would stimulate speedier clean energy technology development.
NGO representatives from the National Resources Defense Council
(NRDC) and the World Resources Institute (WRI) focused on
harmonizing energy efficiency standards and improving the
R&D-to-commercialization cycle. END SUMMARY.

GOVERNMENT LEADERS STRESS LEVERAGING TALENT
-------------------------------------------
2. (SBU) China's Liu Qi kicked off the discussion by laying out
NEA's priorities for clean energy development. Liu emphasized the
need to step up efforts to develop a modern electrical grid, noting
that new solar and wind power expected to come on-line in China over
the next 10 years will require tremendous coordination between
utilities and grid developers. Liu also said clean coal, carbon
capture and sequestration (CCS), and electric vehicles are key
development priorities for the Chinese government. [NOTE: The
priorities laid out by Liu at the clean energy roundtable are
somewhat different from those he laid out earlier in the day at the
joint U.S.-China Clean Energy Research Center steering committee
meeting. See REF A, Para 5 and 6 for a possible explanation of
these discrepancies. END NOTE.] Minister Wan noted similar
priorities for the Ministry of Science and Technology (MOST). Wan
also highlighted the success of the U.S.-China Electric Vehicle
Forum (see REF B) recently held in Beijing, and said that MOST
planned to make this an annual event. Finally Wan said his dream is
to "leave fossil fuel behind," but emphasized that only by sharing
expertise will the U.S. and China be able to achieve this goal.

3. (U) Noting that the U.S. and China are the two largest users of
energy, Secretary Locke stressed the special responsibility that
both countries have to develop clean energy technologies that will

BEIJING 00003182 002 OF 005


sustain economic growth and combat global climate change. He said
China's agreement to remove localization requirements for wind
turbines at the recent U.S.-China Joint Commission on Commerce and
Trade (JCCT) meeting was a step in the right direction, and it is
only through leveraging each other's technical talents that the
United States and China can develop the clean energy technologies
the world wants and needs. The Secretary also noted his plan to lead
an energy trade mission to China next May, which would include
several large U.S. clean energy firms. Secretary Chu expressed
optimism about the direction U.S.-China clean energy collaboration
is heading, but echoed the need to pool resources of each country in
order to make faster progress as the effects of climate change
loom.

BUSINESS LEADERS "RETOOLING THE ENERGY INDUSTRY"
--------------------------------------------- --
4. (U) Business leaders from a wide array of clean energy ventures,
including solar, wind, and electric vehicle production, detailed
their firms' efforts to meet technology challenges. Bruce Sohn, the
president of U.S. solar energy giant First Solar, said that the
energy industry world-wide is undergoing a massive "retooling" and
that public policy changes will be required to accommodate new
energy technologies. Sohn also noted that these policy challenges
are nearly as difficult as the technological challenges and will
require close policy coordination between the United States and
China at the state, provincial, county, and city government levels.
During their presentations, several Chinese and American CEOs
expressed a similar desire that both governments coordinate closely
to develop policies that will ensure continued growth in the clean
energy sector through incentives and common standards.

5. (U) U.S. and Chinese business leaders, including Neil Auerbach,
former head of Goldman Sachs alternative energy investment unit, and
Xie Xiaonan, vice president of China's solar powerhouse firm Suntech
Power, also noted that discriminatory trade barriers will impede the
best technologies from getting to market, and urged government
leaders to devise policies that enhance IPR protection, while
promoting free technology trade. Auerbach proposed building on the
roundtable by holding a follow-on tradeshow sponsored by both
governments that will bring thousands of clean technology
entrepreneurs together.

NGOS, ACADEMIA FOCUS ON STANDARDS AND COMMERCIALIZATION
--------------------------------------------- ----------
6. (U) China and the U.S. are at a key moment where both countries
have the opportunity to transform clean energy aspirations into
reality, according to Ken Lieberthal of the Brookings Institute. He
said that the U.S. and China must develop compatible standards,
regulations, common databases, and basic software sharing, which
will ultimately drive down costs and speed commercialization of
clean energy technologies. Michael Eckhart, president of the
American Council on Renewable Energy, and Deborah Seligsohn of the

BEIJING 00003182 003 OF 005


World Resources Institute, expressed similar sentiments,
highlighting joint venturing as a key means of transferring
technology, protecting IPR, and accelerating technology
commercialization.

U.S.-CHINA CLEAN ENERGY ROUNDTABLE PARTICIPANTS
--------------------------------------------- --
7. (U) U.S. Participants:

- Steven Chu, U.S. Secretary of Energy
- Gary Locke, U.S. Secretary of Commerce
- David Sandalow, Assistant Secretary for Policy and International
Affairs, U.S. Department of Energy
- Frank Alix, Chairman and CEO, Powerspan
- Neil Auerbach, Managing Partner, Hudson Capital Management
- Gregory H. Boyce, Chairman and CEO, Peabody
- Dennis Bracy, CEO, U.S.-China Clean Energy Forum
- David Chen, Vice President, General Motors Corporation
- Kevin Czinger, President and CEO, Coda Automotive
- Michael Eckhart, President, American Council on Renewable Energy
- Barbara Finamore, Director, China Program, Natural Resources -
Defense Council
- Thomas Heller, Climate Policy Initiative, Stanford University
- Scott Jacobs, Manager, Cleantech Practice, McKinsey & Company
- Daniel Kammen, Professor, University of California Berkeley
- Gregory Kats, Senior Director, Good Energies
- Haroun Khawaja, Managing Director, AES Corporation
- Kenneth Lieberthal, Director, John L. Thornton China Center,
Brookings Institution
- Ernest J. Moniz, Distinguished Professor, Massachusetts Institute
of Technology
- Jonathan Read, President and CEO, ECOTality
- Orville Schell, Arthur Ross Director, Center on U.S.-China
Relations, Asia society
- Bruce Sohn, President, First Solar
- Bill Tyndall, Senior Vice President, Federal Government and
Regulatory Affairs, Duke Energy
- John Watkins, Jr., Chairman, The American Chamber of Commerce,
People's Republic of China
- Jack Wen, Vice President and China Region Executive, GE Energy
- Tracy Wolstencroft, Managing Director, Goldman Sachs
- Qi Ye, Chief Representative, Energy Foundation Beijing
- Ji Zou, China Country Director, World Resources Institute
- Deborah Seligsohn, China Program, World Resources Institute

8. (U) Chinese Participants:

- Wan Gang, Minister of Science and Technology
- Liu Qi, Deputy Director, National Energy Administration (NEA)
- Wang Jun, Director-General of New Energy Department, NEA
- Liang Zhipeng, Director of New Energy Division of New Energy
Department, NEA

BEIJING 00003182 004 OF 005


- Zhou Huang, Director of Rural Energy Division of New Energy
Department, NEA
- Xiong Minfeng, Director of Hydraulic Energy Division of New Energy
Department, NEA
- Li Ye, Director-General of Department of Science and Technology,
NEA
- Sun Jiami, Principal Staff Member of Energy Conservation and
Scientific and Technological Division of Department of Science and
Technology, NEA
- Tian Ruihang, Department of Science and Technology
- Liu Deshun, Deputy Director-General of Department of International
Affairs, NEA
- Gu Jun, Deputy Director-General of Department of International
Affairs, NEA
- Pan Huimin, Deputy Director-General of Foreign Affairs Division of
Department of International Cooperation, NEA
- Wei Xiaowei, Foreign Affairs Division of Department of
International Affairs, NEA
- Sun Yang, Foreign Affairs Division of Department of International
Affairs, NEA
- Liu Xiaoguang, Foreign Affairs Division of Department of
International Affairs, NEA
- Ma Linying, Deputy Director-General of the Department of
International Cooperation, Ministry of Science and Technology
(MOST)
- Wang Qiang, Director of Division of Americas and Oceania of the
Department of International Cooperation, Ministry of Science and
Technology, MOST
- Lv Jia, Division of Americas and Oceania of the Department of
International Cooperation, MOST
- Jin Xu, Deputy Director-General of Department of American and
Oceanian Affairs, Ministry of Commerce
- Xie Ji, Vice Director of Department of Resource Conservation and
Environmental Protection of National Development and Reform
Commission (NDRC)
- Han Wenke, Director of the Energy Research Institute, NDRC
- Li Junfeng, Deputy Director of Energy Research Institute, NDRC
- Jiang Xiaoqian, CDM Project Management Center of Energy Research
Institute, NDRC
- Han Aixing, Deputy Director of Department of S&T and Energy Saving
on Buildings of Ministry of Housing and Urban-Rural Development
(MOHURD)
- Hou Wenjun, Principal Staff Member of Department of S&T and Energy
Saving on Buildings, MOHURD
- Zhou Dadi, Senior Consultant of China Institute of Strategy &
Management
- Zhang Yi, Assistant Secretary-General of China Institute of
Strategy & Management
- Zhang Jie, President of Shang Jiao Tong University (SJTU)
- Jin Zhijian, Researcher of School of Electronic, Information &
Electrical Engineering of SJTU
- Xie Changjun, General Manager of China Longyuan Electric Power

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Group
- Lin Zhaohui, President of Golden Sun Solar Technic Co., Ltd.
- Bai Liang, Vice President of Golden Sun Solar Technic Co., Ltd.
- Zhao Shiming, General Manager of Huaneng New Energy Industrial Co.
Ltd.
- Song Yuhong, Manager of Commerce Department of Huaneng New Energy
Industrial Co. Ltd.
- Wang Yusuo, Chairman of Board of Directors of ENN Group
- Gan Zhongxue, CTO of ENN Group
- Li Zongwei, CFO of Baoding Yingli Group
- Miao Qing, Manager of Department of Investors' Relationship of
Baoding Yingli Group
- Liu Jizhen, President of North China Electric Power University
- Liu Yongqian, Director of Department of International Cooperation
of North China Electric Power University
- Han Junliang, President of Sinovel Wind Co., Ltd.
- Chen Danghui, Chief Technical Director of Sinovel Wind Co., Ltd.
- Wang Cheng, President of Hohai University
- Yuan Yue, President of School of Energy and Electricity of Hohai
University
- Gao Jifan, Chairman of Changzhou Trina Solar Energy Co., Ltd.
- Geng Lei, CEO of Changzhou Trina Solar Energy Co., Ltd.
- Wu Gang, President of Xinjiang GoldWind Science & Technology Co.,
Ltd.
- Zhou Tong, Director of Department of Strategic Investment of
Xinjiang GoldWind Science & Technology Co., Ltd.
- Shu Yinbiao, Vice General Manager of State Grid Corporation of
China
- Zhang Puzhuan, Deputy Director of Development Department of State
Grid Corporation of China
- Xie Xiaonan, Vice President of Suntech Power Holdings Co., Ltd.
- Zhang Jianmin, Public Relations Manager of Suntech Power Holdings
Co., Ltd.
- Wang Chuanfu, President of BYD Company Ltd.
- Li Zhuhang, General Manager of Auto Export Trade Division of BYD
Company Ltd.
- Zhang Xiaoyang, President of Henan Tian Guan Group Co., Ltd.
- Kang Xinkai, Secretary to the President of Henan Tian Guan Group
Co., Ltd.
- Zhu Gongshan, President of Golden Concord Group

9. (U) This cable was cleared by the Secretary Chu Delegation.

HUNTSMAN

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