benefits, that insures again i think the very commonsense idea that we must protect the health and safety of the american people without impeding our economic growth, something i think we can get a large number of people in this country to agree on.

>> [inaudible] to the second forum on u.s. china strategic forum on clean energy cooperation. just delighted you could all make it here today. for some of the americans despite the weather that may have needed a little more difficult to get over here this morning. let me make a few announcements and then i want to turn the chair over to jon thornton. first, there are simultaneous translations available. you each should have a microphone. you can plug this into the microphone and directions or over here. channel five for english, channel six for chinese.

please, hold onto your your phones and cassette through the morning, through the session and the following one. and then at the end of the morning, you can put your microphones on the table over there as you leave. secondly, you will get -- you should have a schedule that tells you where to go from each session to each session. but we will also make announcements at the end of every session so that you will be very clear about what begins next and where you go in between. finally, let me ask you to be sure to turn yourself phones off so we can focus solely on the speakers and the substance. with that set of pronouncements, let me introduce john fourth him, who is the chair of the brookings board of trustees. john?

>> thank you. i want to start the proceedings by reading a letter from president obama when i finish, michael host then zheng bijian will read a letter from president hu jintao. i send greetings to those attending the second annual united states-china strategic vehicle china for month energy corporation. your participation contribute to meeting the global challenges of climate change. america's relationship with china is among the most important and the consequential in the world today. continuing to strengthen the cooperation of our two countries to address common global challenges will help shape and improve the world and the 21st century. if little component of this effort is our robust bilateral collaboration on climate change and clean energy, which is necessary to ensure both nations exarate the respective

transitions to low carbon energy security economies. by working together, we can hasten the development and deployment of clean energy technologies to our mutual benefit and to the betterment of our world. i am pleased our governments were able to come together constructively over the past years to promote a successful outcome in cancun building on the copenhagen accord, namely the adoption of the cancun agreements. the global challenges climate change cannot be addressed why our government alone. we also need the active support and cooperation of the private sector, scientific communities, non-governmental organizations and other stakeholders involved in public policy to develop a strong, clean energy partnership. even for this forum bring these parties together, helping us to build this partnership and accomplish our shared goals. i wish you all the best for a productive event, barack obama. thank you.

chairman, over to you. [applause] >> the >> translator: ladies and gentlemen, friends, good morning we are all pleased to come to washington to house the syrian port and strategic forum on u.s.-china energy cooperation. this is the second session. the first session, and i wish the second session to be a very successful conference. now, i would like -- chinese

president mr. hu jintao's message to the second session on a strategic forum, u.s.-china clean every -- clean energy cooperation july 16th 2011 and this is the message from president hu jintao. on the occasion of the second session of the strategic forum on u.s.-china clean energy cooperation coasted by the china institute of innovation and development strategy and the brookings institution in washington, d.c., i would like to express congratulations to

all of the participants to the fore, through china and the united states and also, i would like to give my sincere greetings to the friends from both countries who have cared for the bilateral relationship between the two countries. ayaan 219, the first session of the strategic forum on the u.s.-china clean energy cooperation was successfully held in beijing, which provided a platform for men and women from both countries to promote cooperation in environment and energy. i believe the second session of the forum will continue to promote the two countries' cooperation on clean energy and

sustainable development. this forum will certainly play a very important role in this area. china and the united states are both big energy producers and big energy consumers. in our cooperation on clean energy and environment would have great potential. in recent years according to the framework of cooperation energy we have steadily pushed forward a more pragmatic cooperation in the area of energy, and during our efforts with international community's to meet the challenges of climate change and thus has substantiated to the china u.s. relations. now we have a number of important topics in the human

development, social development. china and the united states have more extensive common interests now, and we both shoulder heavy responsibilities, and the chinese side is willing to work together with of the united states on the basis of the issue will respect and mutual benefit to promote positive, cooperative and comprehensive china u.s. relationships so as to benefit the people some in both the two countries and the people of around the world. i wish the second session of the forum on the u.s.-china clean energy cooperation a big success hu jintao, president of the people's republic of china, 16th

of january, 2011. [applause] >> a few comments by way of introduction of the session and i will be brief. i see the point of this entire year today's as doing our part to ensure the issues of clean energy and energy efficiency are the top of the u.s.-china relationship. i also see that interaction the exchange on this topic as a kind of model for other countries. the two biggest consumers and in the first can work together to solve these problems, than any

other country should be able to do the same. also see it as a model for u.s. relations. the u.s. and china can cooperate in this area constructively and there is no reason we can't cooperate in any other area constructively. i see this occurring in three ways, three practical ways in the next few days. number one, people to people interaction, by that i don't just mean exchange but deepening the relationships everyone in this room knows the world is built up for relationships and everyone knows these are central to building a cooperative relationship to in the two countries and so i would encourage you to go out of your way to deepen your relationships with friends from the other country. second, i see the content of this meeting directly impacting policies in the two countries. we know from the letters we just received from respective leaders that they are taking this very seriously and we will get the input of this conference directly to them and have a direct impact on policy.

finally, in the course of the two days we will have an announcement of some concrete agreements to show that we are not simply having a talk shop but we are actually doing things. i'm going to say a few quick words about ambassador huntsman and then say a few words about zheng bijian and he will speak and will be the first session. on ambassador hans and i'm not going to deliver his biography that you either know or is in the brochure. i will simply say two or three -- call on two or three points. he has been a very successful business leader, political leader and statesman and in all of those roles he's always been an innovative thinker and a very pragmatic leader. to my chinese friends in particular i want to say about ambassador huntsman insofar as you are learning about our country, this is somebody to pay attention to. he cares deeply about china. he is highly knowledgeable about china. in fact, in my experience, and i

have not been paying close attention in the last few years, in my mind he is among the leaders of this country, he is the single most knowledgeable and interested and passionate observer of your country, and i think therefore can be a very important constructive force for the relationship going forward. we are pleased he was able to carve out some time from history busy schedule during the state visit and i give you ambassador huntsman. [applause] >> spec [speaking in chinese] >> translator: how was it for the? the weather is bad this morning but i see most people showed up, very good. i'm very grateful to mr. for giving me an introduction and i got my wife is here because she can hear nice words about me.

-- from china and the united states who are gathered here. we have so many excellent leaders. my good friend and former ambassador joe just to name a few. and i am so very delighted that this session through brookings is able to bring a spotlight on something as important as clean energy within the u.s.-china relationship and jon thornton who himself is a one-man think tank. i want to thank him for his friendship and his vision and his guidance in particular their resulted in bringing us here today. winston churchill used to say famously you never kiss a person who's leaning away from you. you never climb a mountain that

is leaning towards you. and you never speak to a group that knows a hell of a lot more about the subject matter can you do, which is the cardinal rule that i am violating this morning. my friends in china have another way to say it. [speaking in chinese] in just a few hours, president hu will arrive in washington. for the first state visit by a chinese leader since 1997 when visiting the clinton. strobe talbott remembers that. my good friend, ken lehman -- sleeper fall who remembers that. think about it.

almost 15 years have passed. the world has changed a lot since then. when deng visited we revivalist a relationship and i believe president hu's visit will have a similarly significant impact on where this relationship will go in the decades ahead. and where this relationship goes is important not only for the united states and china, but also for the rest of humankind. no two countries are more prominently positioned on the world stage today. the united states and china are the world's two largest economies. we've to of the largest military is, we are the two largest energy users and carbon in

matters for so many reasons. this is a bilateral relationship that touches every country on earth. if you take any of the most critical issues of the day from the economy to the environment, from national security to nuclear proliferation, the we four word must include joint action by both the united states and china. to be sure, the united states and china do have important and fundamental differences that we need to be honest about and confront openly and respectfully , and believe me, neither side is shoddy about that. in my opinion, that is the best way to develop a friendship even and especially among friends and partners. building trust the old-fashioned

way just as we have done now for almost 40 years since the communique was signed in tiberi of 1972. it's not always easy, it will always be smooth, but the reasons for close collaboration with both countries are just too compelling, and if either country wants to succeed, both countries will have to work together. and so, as we move forward, i believe increasingly we need to demonstrate the tangible benefits of this relationship. we need to highlight how this relationship helps improve lives here in america from wall street to main street, and believe me come in this age of instantaneous communication, i believe the same will be required of my friends from china. this is what makes today's gathering so timely and

important. cooperation on clean energy is a further our common interests and benefit not only our people, but also many throughout the world for decades to come. our two countries have had some success in this area. you'll hear about them through as a day. the problem is those successes, which are often accomplished in the context of a jcct war snad or some other acronym don't necessarily resonate with average americans or average chinese. we have to humanize these accomplishments. we have to make them real in ways that citizens on both sides better see the benefits of supporting a strong u.s. and china relationship. what does that mean?

it means we can't just discuss these topics as of stress or technical issues because they aren't. ultimately, we need to make clear to the u.s.-china relationship is one of the best opportunities we have to improve the quality-of-life for average american families and businesses big and small because the economic opportunities are increasingly very real. so when people ask me why we should cooperate with china on a clean energy initiatives, and i say it's very simple. we are embarking on a technological revolution and clean energy like the space program or electronics of the 20th century that will dramatically expand high-quality jobs, living standards and the economy of the united states. we will get better products, lower prices and more jobs in

both countries. i believe the possibilities in this particular area, clean energy, or unlimited. here's a good example. a few months ago i met the legendary innovator and philanthropist bill gates in beijing. generally when bill gates mentions he has an idea for the product, i listen. but this time the product is a new kind of nuclear reactor, something that could operate for 40 to 60 years without refueling compare that to what we have today where reactors need to be opened up and refueled every 18 months or so so that is of this technology works, we could need a lot less uranium to create a whole lot more energy with far less nuclear waste and keeping the uranium inside the reactor

means we don't have to worry about terrorists buying it on the black market. you can see why this would be of such great interest to so many people. but why china? this is an american company but the simple reality is right now the regulatory environment right here in the united states means a what take decades just to certify the design. by partnering with foot chinese, they could move ahead and then commercialize the technology around the globe when it is proven. the end result, countries around the world would get cleaner safer energy and the joint u.s. company could lead the world and nuclear reactor construction. that is a very big deal for so many involved. today with the jobs being so very needed, our cooperation on clean energy development is creating tremendous opportunities for new employment

throughout the united states. westinghouse is a prime example. i'm sure many of you are already familiar with their work in china where they are focused on foreign next-generation nuclear reactors. but you may not know is those reactors in china have already either saved or created 5,000 high-quality jobs here in america and across 13 different states. so as long as we can continue to produce cutting its technology and maintain our competitive the advantage in management, services and education, the china market will loom very large and as china continues its efforts in renewable energy we are beginning to see companies launching operations in the united states, and that means even more investment and job creation here for us. more broadly, our cooperation on clean energy is important and

timely because of its impact on the environment, health and quality-of-life. this is a global challenge and it cannot be resolved unilaterally. we need to cooperate across ideologies and across borders, and we are. both countries have committed $150 million in public and private support for a new clean energyç research center which will help generate new ideas and new products and at least three critical areas with vast potential. efficient building codes, carbon captured and sequestration and electric vehicles. why do i think these are such critical areas for research and cooperation? well, look at the numbers. 70 present of china's energy comes from coal. china currently uses half the world's cement every year and its current building trends continue to build enough force

base in the next 30 years to pave the entire united states of america. in one year, that is all of new york. last year in beijing, there were more than 700,000 new cars on the road, that's 2,000 more cars every day in beijing alone. that might be hard to imagine but take it from a guy that makes the commute daily. my travel time is almost doubled in the last year. the challenge is where do we go from here? we are moving in a similar direction. the question is how do we ensure a common pathway for both the united states and china and that puts us back to where i started to read these cooperative efforts will only work if we have the public behind us. we have to be relentless in demonstrating the benefits and

speaking honestly about the challenges. in closing, let me suggest three ways we can broaden the public understanding of the importance of the relationship with china and the need for greater cooperative efforts. first, we need to continue to expand and promote mutual understanding country to country and people to people. we are already moving toward our goal to send 100,000 u.s. students to china which is perhaps the greatest investment long term that this country could be making. and i know we are working overtime at the industry at beijing and the consulate throughout china to process a record number of the visa applications for chinese business delegations from students, performing, performers and tourist here in the united states. we just recently confirmed china is now the number one country in the world in terms of sending students to the united states. 130,000 in total in just one

year by 40%. by the weak, in terms of job creation, let me just add pretty much every one of those 130,000 students is paying full tuition which means every time we issued one of those visas we are either saving or creating a job in the united states. second, we need to continue our cooperative effort to protect intellectual property rights in china. this is a critical issue in the high-tech sector including clean energy and it generates a lot of concern in both u.s. and chinese companies. we spent the past 16 months in particular working hard to convince chinese businesses that this is not a u.s. versus china issue. this is an issue that affects anyone developing new ideas and new products. i was lucky enough to address a

roomful of chinese entrepreneurs last year the conference where the u.s. relationship started in 1972. and i can tell you this next generation of chinese innovators and strategic leaders, they get this better than just about anybody regardless of nationality or business affiliation. increasingly, they have at least as much to lose from violations as their american counterparts. so i'm very optimistic we are starting to gain a little ground on this. i should also note the chinese government recently launched a six month crackdown on counterfeit technology and is making sure every government office is binding legal software only, no bootlegs and we greatly applaud this effort. third, we should expand our official points of contact. tomorrows state visit should

help us usher a new era of bilateral cooperation and not just at the top, but across the board. we need to encourage our governors and provincial leaders, our mayors and local officials to spend a little more time comparing notes. the future of this relationship will be more alabama were sold like city [speaking in chinese] last september we organized a visit by over 20 chinese mayors to the u.s. west coast cities to exchange views with their u.s. counterparts on deploying green technologies and cities in both our countries. ultimately, that is where the relationship will flourish at the grassroots where we live and where we work on main street and around the family dinner table. it is the opinion generated in every home and every home that will determine the long-term

success of this relationship. as i sit at the outset, president hu's visit is as important an opportunity as we have had in years to bring this relationship into our daily conversations. our presidents are talking, our businesses are growing and expanding, even our military's are starting to be engaged with one another as they did last week with secretary gates while he was in china for yet another very important exchange. our job with it is about clean energy or energizing the private sector to make the benefits of this relationship as clear as possible for the people of each country. we have to improve the lives of ordinary americans just as the chinese have to improve the lives of their citizens. if sustained common ground is to be found in the u.s.-china relationship, there is no better impetus than the strong desire on both sides to aggressively

pursue a clean energy future, and by doing so, we will likely better understand the meaning of my favorite dynasty after is some: [speaking in chinese] thank you all free much. [applause] >> investor come thank you for kimmage with comments and the inspiration. i hope you see what i said earlier about jon huntsman's ability to hit the nail on the head as about humanizing the issue is absolutely central and something which needs an enormous amount of work. so why thank you for those comments. now chairman zheng bijian, just to personal comments about him. at brookings be started a practice a few years ago of

identifying the most interesting , deepest thinkers and china on public policy issues and translating the work into high-quality english city could be accessible to people in our country. our first book, essays by zheng bijian, because he has been the most innovative and deepest thinker on public policy issues in china for a very long time. the issue of clean energy and energy efficiency is something he identified long before it became commonly discussed. he put it right at the center of his famous peaceful rise theory. we could have no better more influential voice, no more pragmatic thinker, no more relentless thinker than chairman zheng bijian. we welcome you and look forward to your comments. thank you. [applause]

>> [speaking in chinese] >> translator: ambassador huntsman, friends, ladies and gentlemen, today are a record 2006 when president hu jintao made a state visit to the united states as the president of the people's republic of china at that time together with csis blight organized a strategic workshop of the china u.s. relations with president hu jintao met with participants of the forum, which made for

limited success. today, we are very happy to attempt to gather with you before and on the china u.s. relations in the second decade of the 21st century and the second session of the strategic forum on u.s. and china clean energy corporation posted by the china institute of innovation and a defendant strategy and the brookings institution here in washington, d.c. during the important historical moment of president hu jintao's visit to your country. i fully agree with and appreciate ambassador huntsman's very insightful speech. his assistants are very inspiring and encouraging.

i believe his words and predictions will turn out to be true and i have a strong belief in that because i am also an observer. i'm not someone faces things without any ground. looking back to the china u.s. relations since the normalization, we can see that the critical junctures, men and women have risen from both countries, never lost sight of the routes for the trees. the show commendable provide experience and wisdom and joining hands to overcome difficulties and manage to maintain the normal development of the relations which was good news for the international community. now in the week of the international financial crisis that is both our two countries,

we need to remember more than ever the successful experience focused on the word in other words, keep a global vision and show pragmatism and political wisdom in our efforts to remove interferences. in this way, we can refuel the engine of the china u.s. relationship for the new foundation of common interest in the second decades of the 21st century. [speaking in chinese] >> translator: why do i raise this point? because since the second half of 2008, with the international financial crisis and the growth of the china economic stress

there have emerged anxieties in the international public opinion about the direction of china's development and skepticism and speculation about china's intentions to stick to the path of peaceful development. ..

misinterpretation of the direction of china's development. and also do great harm to the interests of the united states as well as the common interest of china and the united states. i believe none of us would like to see it happening. for relief, we have heard recently reassuring and reasoned voices and the wise advice from some american strategists. it shows that we have agreement on the existence of time and interest and entered dependence between our two countries. when i studied the subject as an observer and a scholar, i tried to explain why china's rise is to be peaceful. in the early years of this

century, i pointed out on several occasions that it was economic globalization that it made china's rice peaceful, which in turn was keep off in the world opportunities and market the mutual benefit that we will progress. since 2004, i further propose that china needs gradually to build communities of interest with our neighbors and surrounding regions, especially with the united states. as i said, in june 2005, in my addresses to the national committee on u.s.-china relations in the parking petition, there are factors

which one make it possible for our two countries to form communities of interest in multiple areas and that different levels in such communities will not be easily broken a. the fact, as i mentioned, are as follows. in an era of globalization, our interest there's so deeply intertwined that we need each other. the rest of nontraditional security threats has left to a new security concept based on cooperation among major countries. the national community has come to understand that there is necessity for joint efforts to address personal hot button issues and maintain national peace and security, increasing contacts between the chinese and the american people close together. and i still believe this is true

and i believe that the development has proven this fact. for example, we have seen further developments of chinese american student studying each other's countries. i would like to take this of interest in the next decade. first, i look for china's development and second decade of the 21st century. on the subject of fostering convergence of interest and communities of interest, i must first be briefly about the idea and call of china's development

in the second decade of the 21st century. the first two decades of the 21st century are a crucial period in china's endeavor to be a moderately prosperous society in more people. it is a period of development, focusing on improving the life of the people and raising the quality of life in a sustainable manner. it is also a period of transformation of china's economy. now half of this relatively independent empirical. and we still have 10 years ahead of us. on the whole, in the past 10 years, we have done quite well in quantitative terms, but not

in it so satisfactorily and quality of terms. nowhere in the second decade. what kind of alternatives we face in the development. i like to provide you a list. for example, resources and the environment can trains our economic growth and social development, including imbalance between consumption and the city and the rural areas in the eastern and western regions. difficult industrial restructuring and insufficient r&d human resources are unable to meet the needs of deployment structure and distribution of income and regis and the infrastructure, lacking social

governors and increasing social conflicts. severe natural disasters, both predict it will and unpredictable, et cetera. to meet these challenges, i work in the second decade of the 21st century, will concentrate accelerating the transformation of the economic development patterns ensuring in improving people's livelihood, consolidating and expanding our achievements in this financial crisis, facilitating long-term study and reasonable fast economic growth and stability in the country. all of those will lay a solid foundation for a moderately prosperous society but in 2020

and this is the effort we are making in the second decade of the century. to this end, we must transform our economy from one driven by external demand to one driven by both domestic internal demands, namely domestic demands. [speaking in chinese] >> translator: this'll be accompanied by the accelerated industrial structure. china, a lower middle income country will move to an upper middle income country at a faster pace. what is more, china will devote more effort to realizing domestic developments and to raising ethnic standards and it kind of people to work for a

lofty ideal, china will become a dynamic country enjoying harmony and stability. plus, china will exceed the goal of relations. without any doubt, i believe that china will provide the rest of the world with a bigger market and greater opportunities for development. this is a big market and misrepresent great opportunities china's past for peaceful rise. today the trend of the world development is economic globalization and interdependent international relations. in this context and coordination, proper management reform in the peaceful cooperative and beneficial manner will be the means to tackle the existing and emerging

problems and such represents the main trend of development. this world as a whole will face both opportunities and challenges with the former outnumbering the latter. that is the general trend of the world. given the fact that in the first decades of the 21st century, china's peaceful development has made it an important part of the world development. in the sun foundation of common interest has been feared between china and the united states, thanks to the global and in the second decade, china will continue to follow this path and does become a more important part of the world development. and in the same manner as the first decade, china and the united states may develop common

interest which of those defined as more sustainable. [speaking in chinese] >> translator: i've noted that the concepts of common interest i've gone on in the hearts of the state may come depot. all of this will determine the direction of china's relations with the united states and beyond. so that is my first point about china's development. china's development in the second decade of the 21st century. my second point is about china's past for the rise in the beauty of convergence adventures and communities of interest.

in the second decade, china's past horizon policy of beauty and harmonious work needs to be compromised. the important thing is to expand and deepen the convergence of interest of all parties and foster communities of interest with regions in different areas and at various levels. as i said before, we need such policy choice for china's own development, but we also needed for the common development of both our two countries. and i believe it also informs that the trend of wealth development. we hope that more and more countries will recognize and understand our policy choice.

[speaking in chinese] >> translator: to expand and surest antidote communities of interest has become the policy of government in particular to expand and deepen the convergence with very partners has been incorporated into the community's proposal of formulating the 12 programs for economic and social development, which was issued not long ago. in this address to the opening ceremony of the summit meeting, it was proposed that asian members become a close knit community of interest. president hu jintao not long ago and is telephone conversation with president obama said

further that were facing important subjects on how to actively elevate the positive events of china u.s. relationships to a higher level and enter into a property partnership in areas of interest. i would like to say that in fact the convergence adventures between china and the united states has already existed. this is an actual fact. i will not give you a comprehensive list of our achievements and trade development from 25 u.s. dollars to 890 billion u.s. dollars. [speaking in chinese] >> translator: this was unexpected by both china and the united states. since 2008, our two countries

joined hands to cope with the impact of the financial crisis. wasn't as the most significant convergence of interests and special conditions at that time? yes, it was. and now we need to adapt to each other and make the necessary distance in order to work together to deal with changes in the spirit and handle the domestic restructuring of each country. this may become and should become a new convergence adventures between our two countries. in this regard, one thing of earth our attention. the chinese and american companies are mutually complementary and interdependent in trade and now they're increasingly complementary and the investment as well. for the first time in the united

states supposed u.s. investment in china and one year. of course a cumulatively china is much higher, but philosophy alone we have more investments here than in china. so this is a new development. as ambassador hans van mentioned , investment in the infrastructure project is small and medium-sized enterprises in america's south and west will help of its economic recovery and job creation. i think this will show that china u.s., naturists are moving from the strategic macrolevel to a micro level.

during this two days, apart from a dialect, china and u.s. relations, we shall also explore ways to develop convergence adventures in these communities between our two countries is certainly an important areas of clean energy. i believe this kind of discussion will not only contribute to the global effort to address the challenge of climate change, but also help promote low carbon development and energy security for respective countries. in addition, you may crave our business opportunities for two countries. china u.s. practical cooperation in clean energy surely can expand and deepen the convergence adventures and become an important part of the communities of interest. in short, if we put together there is the financial crisis and now in the process of the restructuring of our respective countries and practical cooperation in clean energy, we

find more convergent interests between our two countries and the conditions for building communities of interest in different areas and at different levels. [speaking in chinese] >> translator: even on sensitive issues, china has set the overall interest for ballot relations and given priorities to a stable relationship. it is try to expand the convergence adventures with other parties raised on mutual respect for each other's core interests and may be concerned for interest on the issue of the korean peninsula. we have stated in explicit terms opposition to provocative acts by any side that may lead to tension and intends to develop nuclear weapons on the peninsula on the issue of taiwan we have adopted the policy of

reconciliation, peace and harmony and made efforts to involve the comet chaser for people on both sides. our military modernization we have a tiered to strategic event of military expansion. on the issue of maritime security with countries concerned in a joint effort to preserve international safety. looking down the road, in the next 10 years will witness of labor. this again present strategic opportunities for china and the united states. in the process of economic and political tensions, the basic factors in driving forces that push forward chinese u.s., china and europe and china japan relations in the past 10 years to exist, despite our problems and differences with those countries. this requires us to seek new

growth point in both bilateral and multilateral relations with the need to expanding and deepening our convergence adventures, which will be beneficial to all parties. in short, it is both necessary and possible for us to work together with a global vision. pragmatics. and political wisdom to be with bilateral and multilateral communities of interest and at different levels and the second decade of the century where we must transcend the differences in ideology and social system and the parochial attitude of closing the doors to the others. we believe this is not necessary, but also possible. one, there is accumulation of convergent interests, there will be a solid foundation for, naturists.

then the condition will become ripe for beauty including, naturists, which offers mutual cooperation and excellent success. in conclusion, that you talk about chinese principles and join with other countries. dear friend, the world today is at a critical juncture and sewer china u.s. relations. looking at the first decades, our relations including number of risks increases. we have former ambassador to the united states, and i believe he has a lot to say about this. he has memories and however, to the leaders of our two countries have steered the boat firmly away from them.

our bilateral relations as a whole have developed steadily for 10 years. what about the next 10 years? without a doubt, we may inquire inquire inquire inquire. to be frank, we have such crisis but we believed if we can draw the experience of the past 10 years, take a global vision, be pragmatic in his political wisdom in handling emergencies calmly and appropriately, we can find solutions to any problem. well, if such great confidence

in ambassador huntsman as i can use you as an example. this is an important issue. this is a very important issue. at this point, i would like to quote mr. zheng bijian's words in 1987 u. s. relations facing greece difficulties. he said to general brent scowcroft to as a special envoy of the u.s. president. mr. brent scowcroft said although they are our problems and differences of this or that kind, i relations must eventually improved. world peace and stability needed

but although there is not delay sensitive, but he pointed the most important thing, especially our relations must eventually improve. at the time i asked him if i could use that sentence as the title of that chapter in his book. and if you read volumes three of the selection of his works, you can see the title of that sentence. later i wrote that sentence by mr. president george w. bush. i think today politicians up for

third two countries in this political and strategic vision in preserving and handling our bilateral relations, including interest and beauty and communities of interest in all areas. and a broader sense, this is the way china conducts itself and handles relations with other countries in a world in the second decade of the 21st century and beyond. thank you for your attention. [applause] >> chairman zheng bijian, thank you very much. if you think a german huntsman and chairman zheng bijian representing the best of the united states and china and you listen to it they have to say, it's not difficult to conclude this relationship can be and

should be and must be a constructive initially an official one. of course they of course they emphasize we have a lot of work to do as we all know come us are going to get down to work and just a minute. and i'd like to thank both of you for your contributions to your respective countries coming to your contributions to u.s

speakers in chinese and the english. allow me to speak in chinese. [speaking in chinese] mr. sorton and our guests, ladies and gentlemen, good morning. i am very honored today. i am the vice chairman of the china institute for innovation

and development strategy and also the executive vice council chairman for the china energy research society. today i feel very honored to facilitate this session at this forum. we have six distinguished leaders and experts who are present here today to deliver their speech. as a moderator coming and i feel this is the easy job for me, so i would just introduce them and i would just watch time for them. 15 minutes for each person. after the speeches we hope we will have some time for q&a for the audience. because we have to finish in an

hour and a half. that's why we have to be on schedule. we will try to give more time to our speakers. so the first speaker will be mr. jon holder, the assistant to the president for science and technology director of the white house office of science and technology policy. mr. jon holdren has been for a while and a very well-known and outstanding scientist and educational list, and so he has a long experience behind him and so now we would like to invite mr. holdren to come and give his speech to us. thank you. [applause]

>> term, minister juan, excellencies, it is an honor and privilege to be here to address this very important meeting on clean energy cooperation between china and the united states. i want to start with what i see as the essence of the challenge of the intersection of energy technology and climate change. the essence is without energy there is no economy. without climate, there is no environment. without economy and environment, there is no material well-being, no civil society, no security for anyone. the trouble is that the world is getting most of the energy our economies need in ways that threaten the climate that our environment needs. we need a rapid transition to

queen, meaning particularly no carbon and low carbon resources. delaying action in this transition is dangerous. most of the scientists to think about climate change and its impact have concluded that the most prudent target that is still attainable is to try to limit the global average surface devotee increase to about 2 degrees celsius above the preindustrial level. the european union increased that in 2002. the g8 and the g20 both embraced it in 2009. but to have just a 50% chance of staying below an increase of 2 degrees celsius the developed country emissions need to peak no later than 2015 and to decline rapidly thereafter and developing country additions thereafter.

the world's energy system is like a supertanker. it is immense, expensive and it is difficult to steer. this is a statistical look at the world energy economy, the fossil fuel supertanker in the sense that eda 2% of the world's energy in 2008 was still coming from fossil fuels and some of the largest users and he matters are listed there. china and the united states with about 85% dependent on fossil fuels. russia, over 90%. india about two-thirds. that supertanker is on a dangerous course. consider projections going forward of coal-fired electric power for the next 20 years. those projections have coal-fired electricity generating capacity nearly doubling from to doesn't five to 2013. a large part of the increase in china and india.

if those are conventional power plants not capturing and sequestering the carbon dioxide, the impact on global climate would be immense, perhaps unmanageable. there is a lot that could be done. there is a victory on supply curve if you will showing the cost and the quantities for potential contributions to an emissions trajectory out to 2030 that would put us on track to achieve this result that would give a good chance of staying below 2 degrees celsius, and what you see is lines below the zero-point barr's below the zero-point indicate contributions was actually pay. it hit - costs under current market conditions. the bar above the line have positive costs under current market conditions. one has to pay to avoid those carbon emissions by these means. you see an immense variety of

technology there. this reminds us that there is no silver bullet. as jim rogers, the ceo of duke energy likes to say he calls me silver shotgun holdren because i keep saying there is no silver bullet. we need many bullets in order to address this particular problem. thinking about the curve tells us something about the kind of policies that we need in order to be on this trajectory. the so-called low hanging fruit if we use the metaphor of a fruit tree the low hanging fruit is the set of options that would actually pay off economically even under current market conditions, but we are not currently picking very much of the fruit and we are not because there are barriers and prefers incentives and a lack of financing and information. in order to get the low hanging fruit we need policies to reduce or remove the barriers.

in the middle of the supply curve are options that have a modest positive cost and which we would embrace. the marketplace would increase if they were a modest price on greenhouse gas emissions including particularly carbon dioxide emissions so we need a carvin price to motivate us to reach high year into the treaty. of the far right are the most expensive options. those that even with a modest price on carbon wouldn't be within reach and this is where we need research development and demonstration in order to lower the highest hanging fruit to reach and that is mostly what i want to talk about today of course given the topic of the meeting. what we most need from research development and demonstration in this domain? we need more energy efficient commercial and residential buildings and industrial process these. we need clean more efficient motor vehicles, hybrids,

electrics, fuel cell vehicles. we need biofuels that don't compete with food and forests. we need improved coal technology to make electricity and hydrogen while capturing the, dioxide away [inaudible] [inaudible] [inaudible]

[inaudible] [inaudible] [inaudible] [inaudible]

[inaudible] again, making china a test bed if you will for the deployment of advanced technologies. only in the carbon capture and sequestration does the united states currently have more planned activity and current activity than china does but that picture is rapidly changing. both countries in a sense should be seen as test beds for the other in this immensely important domain of developing and deploying and technologies that capture and sequester carbon dioxide. but there are other factors that favor the cooperation. cooperation and competition are increasingly recognized as not incompatible, but rather complementary contributors

innovation. in a number of respects, innovation has been becoming plus national and more multinational and more international for some time. that's been happening for the efforts of multinational and global corporations, through across national corporate joint ventures through rapidly proliferating university to university and ngo to ngo, cooperative projects in science and technology and other products that actually went the public and private sectors of the two countries. and the united states and china have a long history of cooperation in science and technology going all the way back to 1979. the first formal agreement between the two countries following the normalization of relations was the agreement on science and technology cooperation signed by present carter. under it there have been joint commission meetings on science and technology cooperation coacher by the ministry of

science and technology on the chinese side and the office of science and technology policy in the white house on the u.s. side. all of this time the participants in those meetings come from departments and ministries of state and foreign affairs, treasury and finance, commerce energy in addition to the ministry of science and technology and the osd pieta those meetings take place every two years with meetings of the executive secretary level when the train. there has been under the auspices of the joint commission meetings the tremendous progress, tremendous achievement across a wide range of fields. high energy physics, disease control and prevention, environmental protection agency's cooperating on air pollution monitoring, modeling control strategies and cooperation involving universities the ministry of science and technology, the u.s. department of energy on cleaning vehicles, kunkel technology and energy modeling and that cooperation on clean energy in particular has been expanding rapidly as it should.

that will be discussed in more detail i know by assistant secretary david sandalow and other speakers but i want to say in closing that the obama administration strongly supports the extension and expansion of these important cooperative efforts between the united states and china. thank you very much. [applause] >> we have one minute or two minutes for questions. a question of all the speakers. [speaking in chinese] >> translator: we are very honored to invite the vice chair

of the committee, the minister wan gang to give a speech. other than the fact he is the leader of scientific matters in the country, that he personally is so very involved and experts in terms of the new type of vehicles. so welcome him. [applause] >> [speaking in chinese] >> translator: thank you, professor, honorable chairman, honorable mr. deutch, dr. holdren, mr. sandalow, assistant secretary, distinguished guests, ladies and gentlemen, good morning. i'm very glad to turn the china of u.s. relations for a for the 21st century and the session of strategic forum on u.s.-china

clean energy cooperation. i believe cooperation is highly important. this is what we need urgently. on behalf of the ministry of science and technology of china i would like to congratulate on the convening of this form. my thanks go to the brookings institute and the china institute for innovation development strategy for your preparation and arrangements. thank you. >> ladies and gentlemen, efforts of the international community, the world economy is slowly recovering. but this recovery is after the basis with the balanced progress and certain uncertainties. meanwhile, however, as my friend, dr. holdren, mentioned climate change, energy and resource security, a major natural disasters, etc. as well as over global challenges

against more prominence. but energy development for the economy has been making the global challenges more severe for us. faced with these challenges, no country can settle them alone. we must rely on some technology and innovation and join hands to promote emissions reduction. in that way we can promote the civilization from the fossil energy era to clean energy from industrial economy development to information economy from industrial civilizations to the pecos civilization. this has been the common consensus for the whole world. china is a developing country with a huge population. we are now in the process of development. but during this process, we

attach great and fortune to save energy to reduce carbon dioxide emissions to reduce energy consumption per unit of gdp and carbon dioxide emissions. the chinese government has great importance to innovation in the energy field. from 1990 to 2005, china's energy consumption to the unit of gdp and carbon dioxide emissions intensity was reduced by 46%. as present, chinese government proposed that by 2020 carbon dioxide emissions per unit of gdp will be reduced by 40 to 45% compared with the 2005 level. energy will take up about 15% of

energy consumption. perhaps the figures are not so interesting. let me cite a few examples for you. the professor mentioned about vehicles. for that goal by 2020 for each carbon monoxide emission will buy 115 to 110 grams but at that time the european countries reached the grants per kilometer so that will be a great challenge for china. in order to achieve the goal we must accelerate the application of advanced technology to transform the conventional industries, promote reduction in key areas and accelerate

including new energies, create new economic growth points to the low carbon economy and the cycle economy to address climate change. in doing so, we can build economic development on the solid basis of the friendly environment and energy resource conservation efforts. our work mainly includes the following. first, complete related laws and regulations to create a favorable policy environment for the development of clean energy technology. recently we have promoted energy law the now flying for the national, middle actions to address climate change and renewable energy long term development plan.

those have contributed greatly and later found policy environment for china to date to reduce emissions and develop new energy technologies pit from different walks of life and the energy communities we have been working together to achieve that goal. and together we have vigorously promoted ki demonstration projects and energy conservation reductions technology and we try to force the strategic emerging industry as the new growth point. energy conservation and the hinkle demonstration programs have been demonstrated in 25 cities in china and public transportation area 7500 new energy vehicles have been promoted as used for the l.i.e. delighting application program

in 21 pilot cities in china we have promoted and used over 1.6 million led lights of the various type saving energy by about 164 kilowatts every year. for the smart and critic generation program china has given support to more than 100 generation projects and in the coming two years but technologies will be supportive for about 640 megawatts. for the 2008 beijing olympic games and the 2010 expo demonstrated new energy vehicles led world power. for the expo we have the largest

ever 1,000 of the hinkle new energy demonstration in that area and in the 3.8 square kilometers of the expo park, npv roofs have provided about half of the electricity needed by the new energy vehicles. that shows that we can use new and clean energy to promote the cicione economic development of china. the new energy technology international cooperation and exchange and the new patent that is naturally beneficial, reciprocal and in progress to get china has found technology cooperation agreements with 97 countries like the united states we have participated as well as

other major international cooperation programs projects and let me report we have worked hard toward that goal and have full confidence to achieve our goal. china and the united states will and energy cooperation should take the lead and set a good example for the whole world. as dr. holdren mentioned just now, since the finding of the china technology cooperation agreement in 1979, we've been conducting clean energy technology cooperation during the past 32 years that we achieved fruit for the results under the agreement and on the platform of jcm we jointly build

beijing experiment projects etc.. between most of china and the united states we find and implemented a series of collaborative including china and u.s. nuclear physics and mathematics china u.s. energy technology developments utilization protocol which we celebrated for its tenth anniversary last year and also china u.s. efficiency and renewable energy technology development collaborative. in the coming two years, with the efforts of the two governments and the research institutes, universities and enterprises of the countries we have made new breakthroughs in this area. in a november, 2,009, the two countries jointly announced the establishment of china u.s. clean energy.

in the coming five years we can jointly invest $150 million to invest the establishment of a consortium in the parity areas mainly queen coal in the u.s., an energy vehicles and energy efficiency. the consortium consisted by universities national laboratories and clean energy enterprises of the country's. the work plan report to the steering committee meeting for the work progress every year. later on today we will witness the unveiling and the signing of the work of the consortium. in net last july in a meeting cochaired by steven chu of the u.s. dod, and the united states

joined the proposed the electric vehicle initiative in regards from different countries including germany, france and the u.k.. according to the initiative we will pick up some demonstration cities at the transportation area between shanghai will have a demonstration collaboration to the commercialization experienced sharing and also between china and the energy company they will jointly establish clean energy ecosystem in the province of china and north carolina and not the u.s. to demonstrate the application of building energy efficiency, new energy vehicles and a clean coal technologies in the effort cities. we can promote collaboration in other areas including basic

research environment, health etc. ladies and gentlemen let's work together under the framework of china u.s. agreements. on a serious platform like this we should continue to facilitate the collaboration between countries and the clean energy areas. my vision is that through collaboration we should promote the collaboration between the industries of the country's to facilitate the business and the trade development of the two countries between enterprises of china and the u.s. there might be competition, but here we see today more cooperation that have achieved mutual benefits and outcome and have contributed greatly to the benefits of the people of china and the u.s. and to the whole world. thank you. [applause]

thank you for your very warm inspiring words to be the next we would like to have assistant secretary of the department of energy to say a few words. and obviously he has a long rich experience and publications on the issue so assistant secretary, please. [applause] >> thank you. mr. conductor holdren, dr. deutch, distinguished

guests, let me start by congratulating brookings and the china institute for innovation and development strategy on this timely important process to be that brookings a special thanks to jon thornton, stir until it and can lead in fall. and to the entire team congratulations on your visit that brought all of us here today. i'm going to discuss three topics. first the u.s. and chinese energy economies, second, the reason it makes sense for us to cooperate and third, some of the programs we have under way to do exactly that the rate of what we start with some basic statistics. together china and the united states consume about 40% of the world's energy, a little bit less. it goes to 2008 and is trending upwards in 2009. together it accounts for more than 40% of global greenhouse gas emissions.

china is currently the largest emitter of greenhouse gases. the u.s. is the larger historical a matter if you get this dhaka for the last 20 years of the greenhouse gas emissions but in both of our country's. but there is still a big gap in the per-capita energy use as you can see here this is primary consumption and millions of btu per person. china much, much lower than the united states. but china's economy is much more energy intensive than the united states as we can see here. that is a result of a number of factors. have your industrial sector compared to a service sector. many more opportunities to improve energy efficiency in china and the united states although we both have extraordinary opportunities to benefit by doing exactly that. here are some statistics site might be interesting to compare and contrast.

throughout china and the united states and the blue population 1.3 billion in china, a little for 300 million in the united states. coal consumption, china has about 46% of the world's consumption. we have about 13% a year in the united states. here's an interesting one i'm going to come back to. annual motor vehicle production. today, more than twice the number of vehicles made in the united states are being made in china. dramatic change from only a couple of years ago. here is an interesting one that i think it may not surprise people in this room but i think it would surprise a lot of americans. high-tech exports. china and the united states of roughly the same percentage today of high-tech exports as a percentage of their overall manufactured exports. current greenhouse gas emissions are about equal in the country. china is a little bit greater. greenhouse gas emissions another version dating back to 1850 and

much bigger than the united states and china. greenhouse gas emissions per capita bigger than the united states and china. energy consumption roughly the same and here is an interesting one. vehicles per hundred people. about 80 here in the united states and about six in china. i thought it might be useful to look at a comparison of the way that we produce electricity. one similarity that stands out is we both rely heavily on coal. it's about half of our electricity generation in the united states. it's almost 80% in china. the difference is largely made up by the united states greater relative use of both nuclear and about 20%. gas about 21% here in the united states. china has a greater use of hydro. i think the projections in both countries certainly in