year ahead and china is scaling up and nuclear and other areas as well. in the vehicle sector where the oil is used both countries now in porter than half of their oil. we became a net importer here in the 1940's. china became an importer in the 1990's. two of the three largest importers in the world, and that by the way is a very strong interest between the two countries. here is what i referred to earlier. i think this is an extremely striking grass. if you look at 2007 and compare chinese auto production to the u.s. auto production in that year u.s. although production which is the blue line with significantly above china. look at the trends here with our economic financial the crisis in 2008 and other issues on the auto production fell very sharply. china sharply in exactly the

same pogo as anyone who has spent time in beijing can tell you. most chinese production is sold to the rapidly growing domestic market. look at this curve. hard to say when that -- with the slogan is going to be in the years ahead but it is rising extremely sharply. and this for me is especially frightening. china is going to add about 60 of 300 billion square feet of floor space. china is predicted to add exactly that amount in the next 15 or 20 years. china is going to build another united states of building stock according to most projections in the next 15 or 20 years. it's just a word on our complementary difference is and why to cooperate in think jon holdren has already spoken extremely articulate on this. i would just add a few additional thoughts on

innovation the united states as a mature network of university national lab is in china. this is a growing national priority. just a couple of months ago minister and dr. holdren cochaired extremely productive conversations between the government on innovation policy. we have a lot to learn from each other. the two governments have not always seen completely eye to eye on innovation policy but they are a lot we can learn from each other and we have a lot of progress that needs discussion. in the credit markets there have been recent challenges in the united states. credit in china is abundant. capital markets are well developed here in the united states with venture capital and private equity. significant volumes of low-cost capital in china. so work here in the united states must lead replacing existing stock in china. there are rampant strikes with new build which dr. speed already referred to as an opportunity for test bans and china. by working together we can drive

down costs and accelerate clean energy revolution. science and technology have been a condition of u.s.-china cooperations. here is jimmy carter signing the agreement. henneberger to those of my president obama and president hu announced seven clean energy initiatives. here they are. it clean energy research center that the minister has already spoken about and so has dr. holdren. in electronic vehicle initiative and energy efficiency action plan, green global partnership, 21st century coal initiative and a business cooperation program we called the energy cooperation program. this reflects the potential for the queen energy cooperation and today the department of energy's is on our website www.energy.gov that provides the details of the

work done for what last year in the u.s.-china initiative. let me just talk about a few of them be the flagship program here at the research center is the first of its kind, joint clean energy brings together teams of u.s. and chinese scientific engineers more than 150 of whom have come to washington, d.c. today and tomorrow and many are here in the room. thank you for your commitment to this work, a hugely important and a tremendous opportunity we believe. $150 million of public funding over five years split evenly between the two countries. the past couple of weeks it had people tell me both that's too little and too much so maybe we got it right and the initial topic areas are building, coal and vehicles. here is my roskam secretary chu with the minister at the signing of the korean energy research center agreement last year along with u.s. commerce secretary

barry locke. this is in the great hall of the people. at the department of energy in the past year we release what we call a funding opportunity announcement. it's a legal american term offering funding for consortium to implement the u.s. and china clean energy research program. we received 25 different applications and rigorous process selected west virginia university to run a cool consortium to in the vehicle consortium and the lab to run the building consortium. you can see these are very much group efforts with u.s. companies, research institutions, very deeply involved. over the course of the past several months to groups of been working with chinese counterparts to come up with work plans which are going to be signed in just a few moments in this building. we've also made a lot of

progress on the u.s.-china electronic vehicle initiative and that is in no small measure due to the leadership and vision of minister juan sitting here who is an expert on these topics along with the vision and leadership secretary chu. along the work we've done at the argon national lab in august we brought together u.s. and chinese to learn from each other on technology road map in hand procedures and electronic vehicle demonstrations and infrastructure. this is an area the countries have enormous amount to learn from each other both our countries will be better off with the vehicles in the other. this is of the one of the most exciting areas energy technology extraordinary technological advance, the trade development agency and they jointly hosted a gas training program in beijing.

the u.s. geological service is working to assessment of the china shell gas consortium and the host of a policy dialogue. i thought i would end with a picture of the waterfront. this is two years after i had a chance to see the shanghai waterfront. i lived in shanghai in the summer of 81 and here it is today. 1983 and today. for anyone who thinks that the largest countries, the economy, developed countries in the world can work together. for anybody that thinks the climate challenges are insurmountable and things we can't innovate in energy technology look at what's happened in this great country

over 27 years and in 27 years into the future aggression what it might be. thank you. [applause] thank you very much mr. sandalow for your remarks. i also like to add that he's played it very important will and made great contribution to the u.s. collaboration clean energy. our next speaker will be president of china energy research society. he also serves china political consultations council and he has

been very active in energy and power industry and he used to be the governor of the province. [applause] ladies and gentlemen, i am very pleased to have this opportunity and share with you societies and the views and opinions of energy issues in china and the purpose

is to bring more understanding to our collaboration, and i have three issues to share with you. first, this is a basic evaluation not the future energy supply in china with the rapid increase in the economy in china the basis for the rapid developing chinese economy is the chinese energy industry. >> [speaking in chinese] >> translator: based on our observation of the previous year's observation of the chinese energy supply and consumption and we made the following several observations as several predictions.

number one, energy supply consumption will continue to interest. chinese government has proposed that by 2020, china will triple its gdp, double the gdp of 2,000 by the middle of the century the chinese society will have relative modernization. the rapidly growing economy brings the rapid growth of energy consumption. we estimate that the chinese energy consumption continues to increase of the average speed of

8.9% since the beginning of century and also based on the current energy efficiency by 2020. china's energy consumption will account for half of the total global energy consumption. this is going to impose tremendous pressure in the research environment. second, coal based energy supply structure will remain pretty much the same in the future. we are estimated energy reserves

90% of the fiscal and patrol accounts for 6% and natural gas 1%. so based on our natural endowment, which is obviously thinks too cold and there will be very difficult for us to change the current energy consumption and supply structure. kohl will continue to be the major source of energy based on our prediction by 2020. kohl will account for 55% of the non-renewable energy consumption with a total of 3.8 billion by 2015, coal consumption will still account for 50% of the total energy consumption.

the third assessment, renewable clean energy will make great strides. natural resources and environmental restrictions and believe that renewable clean energy will be a very important source for the future energy supply for china. the chinese government has found that by 2020 now fossil energy will account for 15% of non-renewable energy consumption and we see increasingly restrictive goals. we estimate this percentage will continue to increase after 2020 and we know that while facing very severe challenges in china in terms of energy supply.

we have to make wise intelligent judgment evaluations in this area and this will help us find solutions to face the challenges the first challenge, the energy consumption is tremendous and the sustainable supply is under great pressure based on the research of my society. it's in the chinese economy continues to grow at the current 8.9% annually and the chinese the firm and somehow can manage to reduce per unit gdp by 20% every five years. by 2020 china energy consumption will still account for 20% of the world's total. if we look at coal and if we

continue to use and consume a speed of a billion a year. no matter how much we have, no matter how much coal we have it is going to be eventually depleted. we have to have overall number, overall control and a balanced adjustment of the overall energy consumption structure. the second, we have very poor energy structure that exerts great pressure on environment. in 2010 now renewable energy consumption accounts for 70% which is 40% higher than the global average. if we look electricity consumption in 2010 a total

4.2 million kilowatts electricity consumption coal-fired power plants account for 80% of that. 80% of that is from coal-fired power plants. there is a massive use of coal has created a number of serious problems for china. for example, the transportation and half of it, half of the capacity is used to transport coal and a number of environmental problems under ground water deterioration, air pollution, sinkholes and of course the massive use of coal brings tremendous co2 emissions.

next we have very low energy efficiency which increases energy consumption. the sound statistics. 70% of the world total china consumes close to 18% of the world energy resources. which is a very low efficiency. the main reason for the low energy efficiency is because of the current economic development model and china is heavily dependent on the fixed investment and export. it's too much tilted toward raw material and general manufacturing at the same time because of the poor technology,

china's equipment compared to other countries especially the developing countries have very low efficiency. ..

and 55% dependent imported oil. so it's increasing living standards of the chinese will and we see -- we believe that oil consumption will continue to increase rapidly in order to satisfy domestic needs. and had we look at the overall international environment for oil supplies and how to achieve a balance between the domestic and overseas market and how to establish a pre-warning mechanism for oil supply. this is a very serious challenge for both industry and government been seen on these challenges, we have to make necessary adjustments. we think we need to approach

this from six suspects. first, we have to move to science-based energy production and energy consumption. second, we have to move coal-based energy can function to green diversified and low carbon energy development. third, we have to move from our overdependence domestic energy to a balanced dependence on both domestic and international markets. and fourth, we have to protect the environment and we cannot sacrifice environment for the development of the economy. and first we have to move from energy dependence of open model

to innovation and science driven development model. physics is we have to develop a diversified portfolio of energy supply. [speaking in chinese] >> translator: . point. some of our visions for china's energies and energy. we can't step on the same path of this high-energy consumption of the developing countries. we have to stay below the average of the developing countries but we are modernizing china. recently china energy researchers society held a forum, discussing energy development for the five-year

plan. and experts share their opinions and their analysis on china's energy strategy here and to share their opinions with you. we believe that there are four characteristics and china's energy strategy. it should be scientific, i.e. efficient tea, green and low carbon. scientific is the number one -- number one strategic your touristic. we have to depend on technology to support our economy. high efficiency puts conservation is a priority and we have to conserve. we have to preserve in order to

achieve a good balance. green means we have to be environmentally friendly inner energy development. no carbon is we need to reduce emissions intensity of greenhouse gas. and at the same time, we have to affect only control the growth of greenhouse gas emissions. so they're six aspects. first we need to prioritize conservation, control total consumption. conservation efficient the in toto consumption control. these are the three priorities. we hope their efforts by 2020 the total energy come the team will be controlled with a 45 billion tce peer by 2050 come

the total energy consumption will be controlled between 5 billion to 5 billion tce. this cholestasis up the current china -- chinese gdp in your growth. the second aspect we need to continue the scientific development of coal in the development of clean coal energy and make necessary strategic adjustment. coal mining must be safe, must be highly efficient and environmentally friendly. this is a task we have to step up. and the percentage of coal in our total energy consumption will continue -- should continue to decrease hopefully by 2050, will reduce it to 40% or below

35%. at the same time, we need to try her best to reduce the speed -- the increasing speed of the coal consumption and we hope eventually it's going to reach a peak and stabilize. the third aspect is we need to continue to support gas and oil as strategic resources. and we're going to expand our exploration and act as we import gas and oil. natural gas is very clean energy and it has a very big growth in our energy overall structure.

it will try our best to increase its percentage inner energy consumption. we hope by 2030, our domestic supply will be 10% of the non-renewable energy supply. and the fourth aspect that will continue to hydropower and other renewable energy. the hydropower is the first priority for renewable energy development before 2013. we hope by 2020, 2030, 2050, we reach capacity of 300 million kilowatts, 400 pima kilowatts and eventually 500 million kilowatts. and we'll try to take advantage

of the solar energy for the environment so they will become the new killers of our green energy sources and non-water or hydraulic renewable energy by the year 2020, 2030 and 2050. but it's total contribution that will respectively reach 200 million tons in respect of years. renewable energy, whether it's water or non-water, we know the strategic position will continue to be created from that of an alternative energy to one of the leading energy sources. now, on a fifth point, those second-generation energy technologies that passed already matured come especially along the coastal area we should continue to develop and continue

to work with the generation energy so we can speed up development so in 2022 nuclear power generation will be able to reach 70 to 80 million kilowatts by 2020. 200 million-kilowatt and 2050 over 400 million kilowatts so will bill to provide even more energy by 15%. i hope that we will continue to develop energy that are highly efficient and safe and intelligent so that will continue to improve the existence. ladies and gentlemen, the chinese new energy strategy -- the implementation of the

strategy is dependable on the mutual cooperation are to energy powers, china and the united states. so i would like to propose that in this particular energy area will continue to enforce coordination and cooperation that will appeal to tackle the problems that are now happening around the world. thank you very much. [applause] [inaudible] -- for the ceremony of the china clean energy meeting. but maybe they are already left. so next speaker will be john deutch. i'm sorry. i'll speak in chinese.

[speaking in chinese] >> translator: mr. deutsch is kind of a legend because i remember he was speaking at mit in the 1940s and had written over 140 publications and also at the national defense secretary or cia or the energy department. he was the leaker's. as far as director of the cia. so politically and also in terms of energy, he's an expert. so now we would like to get the floor to him. thank you. [applause] >> thank you very much, zhou dadi. i always enjoy these panels with

zhou dadi with as many places in the world. but the most exciting time i spent with him was in the houston rodeo in texas. and they'll be selling pictures of zhou dadi in a big texas had at a texas rodeo out right after the session. i was not supposed to speak at this session i subsequently organize, but it will offer a few comments. our first trip to china was in 1977 with frank price who is then the president science advisor. and the purpose was to negotiate in chinese the first student exchange to the united states, which you have heard from mr. holbrooke was confirmed and president carter, an agreement i

was at. i returned to mit in 1980 and welcomed the first for teen chinese students who arrived. who can imagine the extent of interaction that has taken place in science and technology since that time? i do not know of any technical person in the united states who has not visited china in an effort to understand the activities that are going on. consider cooperative projects and indeed to the her business opportunities. it is a fantastic and unimaginable change in 30, 40 i do think there are challenges to further progress.

and in my brief comment that went to mention three. three comments about the challenges from a u.s. give. the first day since 1977 i returned in 78 with secretary james schlesinger, the first secretary of the department of energy and a former cia director as well. every time a u.s. cabinet officer has gone to china, a cooperative science and technology agreement has been signed. and they urge us to look to the current technical duties that are taking place as opposed to the agreement. and here i am most pleased about the signing ceremony, which is going on outside, which is a concrete effort to develop a

joint research and development program in automobiles, clean coal and building efficiency. and i know there are many other industrial operations cooperations going forward, joint chinese u.s. activities, which deserve our attention. this is the area which needs to be accelerated. second point i want to make is a challenge. the anxiousness than i have about u.s. attitudes, especially in green tech allergies, solar technologies and biomass and other technologies among young technical people of the united states. they are passionately concerned about the chart that mr. sandalow showed up other expenditures in government support about government technology in china and the united states.

and i must say these young technical people in the united states come in the clean energy area are passionate and they are angry it. now they are not clear whether they are angry against the united states government, who should be doing more for increased the chinese government for doing so much. but this is a matter which deserves attention, especially in the political world in which we live. the anxiety of the difference in the effort which are being made in energy, research development in our two countries. it must be addressed and actually a bilateral group such as this one is the kind of community that could address in a construct way because the debate goes on without any attention to data. it is based on opinion. the third is a more distant

challenge. why are we doing this technology cooperation? we are doing this technology cooperation because we believe that it will lead to mutually beneficial economic opportunity for both of our countries and therefore for the benefit of our citizens. it is the economic benefits that we can jointly enjoy that is a motivation for the technology, investments and cooperation. and here, there are three items which must simultaneously move forward from the american side and similar movements are well as i know the united states. those three? 's first is a reduction in export controls by the united

states. and here he makes a president obama has the beginnings of a very important issue. the second must be greatly facilitated possibilities for investment by china and the united states. in the third must be the opening in a realistic way of chinese market to u.s. industry to invest and to operate in china. so i pose an additional, to beyond a clean energy tech lg cooperation, the challenges come in unless we move forward on august 3 fronts, we will not reach the benefits that oath our countries deserve. thank you very much. [applause] [speaking in chinese] >> translator: thank you very

much, mr. deutsch. all of the speakers today are all pure drives by one theme, that they are all very senior people in the there'll also scientists. and so the next speaker is mr. wan gang, who is a member of the chinese academy hearing. he is friend sent me, the biggest coal mining province of china. he was the dean of the university there, so the npc of shin the, the second in possession, so he's an expert as well as a highly respected expert. so i would like to give the floor to him. thank you. thank you very much.

[speaking in chinese] >> translator: distinguished guests, ladies and gentlemen, good morning. my title today is about promoting a sensitive corporation and to promote the development of clean coal. the climate change is a challenge that we both face. it is a global issue. we know it has to deal with the energy development, but it will also affect the development of each individual country because it will have a social economic affect on the country. as the ones were spoken before me, this kind of global challenges not properly handled can bring new conflicts and differences. and it can handle that it will produce a lot of affinity to

allow china and u.s. to enhance their corporations so we will be able to achieve results. currently, the consumption -- total consumption in china has r.d. exceeded that of the united states and were expecting to see more in the future. for the future, how do we balance a reduction as well as to continue to produce clean energy has become a huge strategy in china. currently we depend on domestic forces. we are using the most 90% -- almost 90% of our sources come from china. because we have very limited research and coal and natural gas, therefore we are relying heavily on coal. currently it accounts for 70% of the total consumption.

currently we have not come at peak in terms of industrialization. and so are per capital admission is still lower than other countries. we need to jobs created to them by organizations. therefore we can expect that you would have even higher commission. so huckabee urbanized and how can we industrialized well as we continue to develop the economy, but can also control the emission -- this is a very big issue and challenge faced by china. because currently our industrial structure is really not too balanced. and so, we need to develop an

economy. also reducing imation, we really need to do other better options. we need to develop even faster the clean coal energy and also the low emission coal and technology so that as we develop this new energy. ultimately will be able to develop a sustainable development. we need to work -- speed up our pace on changing our development model. so this has become the topic. as we say on climate change and develop a new energy, we must also do so based on the science. so the development in china is i

will take clean energy to be our top priority. we have proposed the per capita or unit gdp lower 20% by 2020, so we will have a better system to regulate these energy emissions. and some of us have already been implemented quite affect to believe. in the efficiency standard are being issued and they'll are to be pushed forward. and all these measures have been taken and for the last five years of our products by over 40%. so we hope will be able to reach our goal. in other words, the school is still very possible.

because according to the chinese academy in china, 20 to 30% -- we still have 20% or 30% space for us to continue to expand in terms of energy supply. it is also china's top priority to develop clean energy and will consider natural gas, hydropower should be our main items of development. we'll also try to develop policies to create an environment for this energy to be developed. we will go on the low to track dream. but of course in the next two years, coal will still be the main energy source.

set up of carbon use of energy will become our goal. so here i would like to, as far as the direction we're going to concern how to go forward -- bilateral concerns i would like to let you know how we plan to do this. first would like to develop clean coal energy green mining and also tried to clean out the burning process and also the generation process and transfer process and also how do we conserve the energy in producing clean coal.

next, on clean coal, which has the biggest potential for the u.s.-china cooperation, as far as clean coal is concerned, china has -- have a lot of pollutants that come out of the results of this so we can learn about that from the united states. and in terms of the reprocessing process, we think that we each have our own advantage. and so, as far as the oxidizing method that was used by the u.s., we can also run from this. in terms of super critical mass, this kind of tech augean china can also learn the advanced technology and the united

states. [speaking in chinese] [speaking in chinese] [speaking in chinese] [translator inaudible] [translator inaudible] >> translator: we know chinese, one american company in a joint adventure and will put

in 150 billion r&d and rad application in the area of tech knowledge is. in effect, american experts and adding to these in the world, we energy in order to employ respects on the emissions so as to reverse the course of climate change. we also believe china in the president waits at the forefront in clean coal technology. i cannot totally agree with james, but i absolutely agree with his suggestion that the

united states together with this government will strengthen cooperation with chinese conference of world agencies survey. china produced 45.6% of the total coal production in the world and the united states is about 21% and we consume about 49%. the united states consume about 15% of carbon reduction in the world. these numbers are pronounced in 2009. now in 2010, chinese power and what is the united states, 46% of coal. so we can see the largest coal producers and can termers can cooperate. there's a huge corporation

because we have tremendous capacity and rad and we have relatively sound foundations for collaboration and in addition to existential cooperatives found them we should expand human resources development and support academia, including the chinese academy and my academy as a matter of fact it dissipated in strategic consultation projects. so i believe it would be further rate corp. insensitive manager on trade manner.

it will become a key component in our relationship. there is no need to increase energy efficiency, but also in the leadership to accompany climate change. if we can do that, then we can achieve the goals set by president hu jintao stated in his remarks to further bilateral relationship. thank you very much. [applause] [speaking in chinese] >> translator: thank you. we still have a little bit of time left and so you are welcome to raise questions or share your comments with your six

panelists. [inaudible] >> the mic is not on. >> -- in the u.s. is that right? with your second point that china needs to do more investment in the u.s. of the three points he made at the end of your speech. and if so, what kind of investment? >> know, the second point was the united states should be more open to chinese investment here. >> slightly different spin on that then. what kind of investments do you have in mind? >> well, i happen to be

unusually in my case on the left-wing side of this than i would say anything they want more or less. certainly, investment would be an example of something which i would've thought would've been quite permissible. >> anymore comments, questions? >> charles ettinger from brookings institution. any of the panelists i would like to address this question, when worse out talking about large utilization of coal by 2050 by believe some of the panelists were talking about. this seems to fly into the face with the intergovernmental panel on climate change is sane, which is by 2050 we have to be on the

true check or a downward. in what figures you think correctly, i think i heard by 2050 china with still be on an upward tree, even though in percentage terms that might be down in your total primary energy usage. and i wonder if i heard you correctly. i wonder how you got till the trajectory upwards with the conclusions of the appc. >> let me take at least a shot at that. first of all, what is going to matter as we move deeper into the 21st century is what elegies be used to burn the coal that we burn. china may well still be burning a great deal of: 2050. the question is how much of that coal will be burned in tech elegies that capture and sequestration of carbon dioxide. i think two things are going to happen going forward to tend to increase the fraction of coal

that is used that ends up with the co2 captured and sequestered and tends to increase as well the contribution of other clean energy to elegies as opposed to uncontrolled burning of fossil fuels. the first of those that do this that i believe unfortunately the symptoms of damage from climate change will continue to escalate, which will motivate countries to move rapidly in the direction of replacing the height admitting to elegies with automating technologies. the second thing i happened is the technological advances make it less expensive to make those transitions than we currently expect. so both of those forces will move in that direction of decreasing emissions from the energy sector over time and an even greater rate we probably currently anticipate. >> this is mainly from power at

aubuchon university in china. my question is with regard to clean coal utilization also on the previous exchanges. cool, no matter how you use it in a clean way as an energy source it admits co2. it just increases the energy utilizing in the process. now, in the u.s. and china, know about me we are the largest in coal use production, also we have the largest nuclear fleet and china as the country with the largest growing nuclear power market. and nuclear is the true no co2 emissions power source. utilizing coal -- by utilizing coal, with reduction in co2 would necessarily require some kind of than the limiting power

source and nuclear would be a great way. and so cooperating between the two countries with technology developments in nuclear deployment would begin imports not in nuclear deployment would begin imports not in nuclear deployment would begin imports not in nuclear deployment would begin imports. >> two that i could only say i agree. >> well, we have to wrap up by 11:30 for this session. it is exactly 11:30. so again i would like to thank the six panelists for their outstanding remarks in thank you