This is slightly dated by now but I want to be sure this is posted for posterity’s sake. In mid-May I participated in a panel discussion at the China Environment Forum at the Wilson Center here in Washington, DC. The topic of discussion was “Decarbonizing King Coal: Growing U.S.-China Clean Technology Cooperation”, and my fellow panelists Ming Sun of Clean Air Task Force (pictured right) and Albert Lin representing Future Fuels, LLC (pictured left) had very interesting perspectives on the role of “clean coal” in China’s energy future. (And that’s me in the center of the pic.) The focus of my presentation was to provide a more macro look at China’s innovation capacity in clean energy technologies. The whole sessions can be accessed at this archived webcast.
For the convenience of readers, I am pasting my presentation outline (as prepared, but not necessarily delivered) here: Read the full story
Foreign governments’ and businesses’ frustration and disgruntlement over China’s restrictions on trade and foreign investment is reaching fever pitch. First it was Jeff Immelt, the chief executive of General Electric in a speech in Rome earlier this month raising the question of whether China “want[s] any of us to win, or any of us to be successful.” Then it was the chief executives of BASF and Siemens together with German chancellor Angela Merkel in an exchange with Chinese Premier Wen Jiabao last weekend in Beijing, who all reportedly used pointed language to call China’s restrictive foreign investment and trade policies to question. These complaints, while valid, point to a larger problem here in the United States—we give the Chinese government leverage by not giving companies valid market alternatives.
There has been particular attention on Chinese government policies in the clean energy sector that favor domestic companies and products over their foreign counterparts. This is a new industry and represents a rapidly growing market for foreign firms. But there is also a widely held notion in the international business community that clean energy should be more open to foreign competition since it doesn’t raise the same national security concerns as tightly held industries such as defense or telecommunications.
Despite a substantial 19.6 percent rise in foreign investments into China over the first six months of this year, there is still a growing question whether China is using industrial policy beyond legitimate means of promoting domestic development of fledgling industries, and actively shutting out foreign competition so as to cultivate national champions. After all, China’s Medium-to-Long Term National Plan for Science and Technology Development, or S&T Plan, released in 2006, does explicitly call for the “the country’s reliance on foreign technology [to] decline to 30 percent or below.”
The frontlines of this debate lie in the Chinese government’s policies to promote homegrown innovation, or “indigenous innovation” as it is called. The National Indigenous Innovation Accreditation Program, initially announced last November, directs Chinese government agencies and provincial governments to procure products listed in a newly created product catalog covering six categories from companies that meet certain criteria. The release had foreign businesses up in arms. Foreign companies rightly charge that the criteria used to determine whether or not a firm’s product qualifies for the catalog discriminates against their products and excludes them from potentially lucrative Chinese government procurement contracts.
Excellent overviews of the details surrounding these government procurement guidelines are available elsewhere, but several points are worth bearing in mind. First, what the Chinese government is doing is Read the full story
Two weeks ago I testified before the U.S.-China Economic and Security Review Commission, or USCC, a specialized body created by the U.S. Congress to “monitor, investigate, and submit to congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.”
The hearing was about China’s policies to promote green technologies, and was actually held in Toledo, Ohio, a city struggling economically due to its long-standing codependence on nearby Detroit’s ailing auto industry, but which also sees some sort of future in clean energy technologies.
Below is my oral statement, which lasted just 7 minutes long.
I also submitted 13 pages of written testimony, available here (pdf, as submitted to the USCC and has footnote citations) or here (html, repost on Climate Progress). I encourage the reader to read the full testimony as it allowed me to go much more in depth on specific things. The first part of the testimony may be familiar to faithful readers of this blog; it is primarily an adaptation of a chapter I wrote for a larger Center for American Progress report called “Out of the Running?” that provides an account for China’s comprehensive approach to developing its “new energy” sector. The latter part is more original stuff, as I (i) make the case for how China’s clean energy push is in fact consistent with its overall economic reform , e.g. Scientific Development, reduction of excess industrial capacity, natural resource price reform, western development, boosting domestic consumption, and Going Out strategy; (ii) describe China’s activities in innovation and R&D and its desire to create, not just produce, energy technologies of the 21st century; (iii) address criticisms that China’s “indigenous innovation” policies are protectionist in nature by pointing out the myopia of such observations from a US (or EU for that matter) policymakers point of view; (iv) provide thoughts about what the proper U.S. policy response should be.
Download the full written testimony (pdf)
Good morning and thank you for the opportunity to testify before this distinguished commission on China’s policies to develop clean energy technologies.
My name is Julian Wong and I am a Senior Policy Analyst at the Center for American Progress Action Fund. I speak before you today after having spent the past two and a half years of my professional life almost exclusively devoted to analyzing China’s energy policies. Three months ago, I led a delegation of senior staffers from the Center, along with key Senate staffers from Ohio and other important districts, to Beijing and the surrounding area to look at China’s advances in clean energy.
In a Washington Post op-ed last year, two esteemed business leaders, venture capitalist John Doerr and General Electric CEO Jeff Immelt, said Read the full story
GLF has been traveling and getting a little caught up on side projects, but let’s play some catchup. Let’s pick things up with two specific appointments by President-elect Obama which have implications for U.S.-China energy relations–one being the 1997 Nobel Prize Laureate Dr. Steve Chu of Lawrence Berkeley Labs (LBL) as the new Secretary of Energy, and the other being Dr. John Holdren, physicist and energy technology policy professor at Harvard and Director of the Woods Hole Research Center (whom yours truly had the pleasure of meeting in the copy room as a policy intern there way back in 2003) as the White House science & technology adviser.
Besides being a director of LBL, Dr. Chu (pictured right) is also a professor of physics and molecular and cell biology at Read the full story
The following is the complete transcript, modified and supplemented for completeness and readability, of the closing speech that the author of this blog (pictured below) delivered on November 11 at the JUCCCE Clean Energy Forum in Beijing.
We are at war. A world war. But unlike World War I or II, this is not a war about military tanks, but it’s a war about gas tanks. This is not a war about military strength, it’s a war about political strength, and innovation. This is not a war about conquering territories, its about conquering our addiction to fossil fuels. And unlike the first two wars, we are all fighting from the same side. We are engaged in a global energy and climate war. We have essentially, through our reckless consumption of the earth’s natural resources, provoked an unanticipated response in the world’s climatic system. We have essentially pitted Mother Nature against Mother Nature, and we are all caught in the middle.
So what now?
We need a serious restructuring of the way we organize our energy system, implement new rules and policies, and adopt new ways of using energy. We need to, as Rob Watson says, change transform “ego-nomics” into “eco-nomics,” and we do this by appropriate adapting human laws to the immutable laws of nature.
So how do we get there? How do we achieve the innovation to meet the energy-climate challenge? We need an smart and well informed mix of regulatory and market mechanisms. There is no single silver bullet, but I believe that over the past two days of discourse, we have collectively started forming a framework for the array of solutions, a full complement of many green bullets to get the green revolution under way. I see three themes emerging from our discussions: Read the full story
China releases comprehensive white paper on its climate change policy ahead of key international meetings.
Ahead of the high level technology transfer summit in Beijing next week; next December’s 14th Conference of Parties under the United Nations Framework Convention on Climate Change (UNFCCC) in Poznan, Poland, during which a general framework for a successor treaty to the Kyoto Protocol, which expires at the end of 2012, will be hashed out; and of course, Halloween, the State Council of the central government has released a white paper on climate change policy titled “Comprehensive Plan on Climate Change.” This white paper also comes on the heels of China’s submission of a viewpoint paper to the Ad Hoc Working Group on Long-term Cooperative Action of the UNFCCC on September 28
While the 11,000 word white paper reads like a kitchen-sink of domestic policies that may seem to ring hollow given the institutional limitations that China observers have come to be so familiar with, the document does provide a good summary of the specific policy programs that China has enacted so far and of future policies that we can expect. Above everything else, the timing of the release of this document is highly strategic, ahead of the above mentioned meetings, as the white paper also states in no uncertain terms various policy positions that seem to have the north and the south heading towards climate deadlock.
China’s position is clear. It wants developed countries to take the lead in curbing emissions and aiding developing countries to meet their low carbon aspirations by providing funding and technology. Let’s tease apart some of the verbiage that leads to this conclusion: Read the full story