November 09, 2017 Source: Securities Times

       Through the luxury lineup of US business delegations composed of 29 corporate executives and with Trump's visit to China, in addition to the well-known corporate names of General Electric, Boeing, Qualcomm and Dow DuPont, they also found the US A liquefied natural gas export terminal developer Cheniere, tower solar thermal power technology developer SolarReserve, nuclear power giant Westinghouse Electric and sewage treatment company Viroment and many other new faces, and as many as one-quarter of the follow-up companies are involved in cleaning Energy business. In the midst of the traditional trade in steel, aluminum and other traditional products, Trump may want to open a larger window from the clean energy zone.

Out of the good for the low-carbon economy, countries around the world are increasing their efforts to develop and invest in clean energy, including hydropower, nuclear power, wind power and solar thermal. According to the "China Energy Finance Development Report (2017)", the total investment demand for clean energy in China during the "13th Five-Year Plan" period will reach 3.1 trillion yuan, of which hydropower investment needs 500 billion yuan, solar energy industry investment demand 100 billion yuan, wind energy The industrial investment demand is 700 billion yuan, the nuclear energy industry investment demand is 450 billion yuan, the biomass energy investment demand is 196 billion yuan, and the geothermal energy investment demand is 140 billion yuan.

However, the market background of clean energy is in sharp contrast. In addition to certain technological innovation capabilities in the field of electric vehicles, other clean energy technologies are systematically short. According to the Low Carbon Development Report of the UN Beijing Office, China needs more than 60 core technologies to achieve its goal of reducing carbon concentrations in major industrial sectors such as electricity, transportation, construction, steel, and chemicals. However, these 60 core technologies have 70% are not in the hands of the Chinese. It is also because of the shortcomings in technical capabilities that the industrial impulses of Chinese companies to develop the local clean energy market have been suppressed, and of course the United States has left a huge commercial space for the core technology. According to a study from the International Energy Agency, the United States is at the top of the world in clean energy technologies, especially in the areas of carbon capture, utilization and storage, and renewable energy and nuclear energy. The United States controls at least half of the world's top technologies. Obviously, China and the United States have obvious complementary effects in the field of clean energy.

For the United States, the use of technological advantages in cooperation with China in the field of clean energy should be a very cost-effective business. On the one hand, the financial services industry in the US industrial structure currently accounts for 80%. The risk of this growth model that relies on the virtual economy has long been supported by the financial crisis. This is also the case. Trump has supported the United States after he took office. Manufacturing, and if the United States can increase its exports of clean energy technologies and equipment to China, it will undoubtedly gain new engines and endogenous mechanisms for economic growth. On the other hand, the long-standing US trade deficit with China is mainly due to its export restrictions on China's high-tech products. According to experts' estimates, the annual growth rate of China's high-tech market will reach 20% to 40% in the next 15 years. The United States has relaxed relevant policies, and its exports of related products to China may reach 60 billion US dollars, which will effectively alleviate the imbalance between China and the United States. Not only that, but American companies are striving for sufficient equipment investment opportunities in China's clean energy market, which will inevitably lead to the expansion of the US job market, such as a wind turbine, with 8,000 components, 200 tons of steel, 13 tons of fiberglass, if The United States is able to enter into a project cooperation agreement with China, the country with the strongest wind power generation, and the United States is likely to become the origin of these components, thus creating huge employment space.

We must recognize the benefits of China's access to clean energy in the process of developing clean energy. In addition to accelerating the pace of its transition to a low-carbon economy and the new endogenous driving force for forging economic growth and strengthening industrial upgrading, China can also introduce technology. And the absorption and utilization of clean energy development process to shorten the cycle of fossil energy dependence. Not only that, rumors about carbon tariffs are rampant in many developed countries and economies. If Chinese companies cooperate with US companies in clean energy, they can not only effectively use each other's technology to strengthen their carbon emission control capabilities. And can improve the technical standards and competitiveness of their products to avoid new market risks.

    It is worth pointing out that many people believe that Trump’s announcement of the withdrawal of the Paris Agreement means that the US government has sealed up clean energy development and construction, but it is not. As US Secretary of Energy Rick Perry said, the Trump administration will continue to promote fossil fuels and renewable electricity, as well as greater development and deployment of nuclear energy, and continue to ensure energy mix by seeking technological advances in these areas. Diversity, efficiency and sustainability. In the cooperation of clean energy, if the US can properly liberalize the restrictions on China's high-tech products exports, China will also open up the market investment field appropriately, and the two sides will be able to jointly produce a more delicious cake.