BEIJING (AP) -- U.S. leaders want China's clean energy boom to drive technology exports and are sending a sales mission to
China passed the United States last year as the biggest clean power market, stoking hopes for Western sales of wind turbines, solar cells and other gear. But U.S. and European companies find that while
"China is very keen on being able to depend on themselves," said Frank Haugwitz, a renewable energy consultant in
U.S. Commerce
"There is an incredible opportunity for companies all around the world to help China meet its energy goals of reducing greenhouse gas emissions, becoming more energy efficient," Locke said in
"China, given the incredible challenges that it has, should be, in my view, taking the best technology from wherever -- whether it's China, the United States, Europe,
But Chinese leaders want clean energy to be one of a series of emerging industries with their companies playing a leading global role. They are using regulations to ensure the bulk of Chinese sales go to local producers.
"There is a clash there that I think is going to become more and more prominent unless both sides come to some agreement," said Jim McGregor of APCO Worldwide Inc., a consulting firm, and a former chairman of the American Chamber of Commerce in China.
China already is embroiled in an array of disputes with Washington, Europe and others over currency, trade in goods from steel to shoes to chicken and
Washington and
The potential Chinese market is huge:
Foreign suppliers range from General Electric Co. and Europe's Siemens AG to Denmark's Vestas Wind Systems A/S and smaller startups. Products run the gamut from 20-story-tall wind turbines to generators powered by chicken manure.
"Low-carbon development in China represents an enormous opportunity for American businesses," said David Sandalow, an assistant U.S. energy secretary, in an April statement to the U.S.-China Economic and Security Review Commission.
The biggest impact of China's industrial curbs has been in wind.
The foreign share of China's wind turbine market plunged from 70 percent in 2005 to 12 percent last year, according to the European Union Chamber of Commerce's Renewable Energy Working Group. The chamber complains that Chinese authorities help local companies by basing purchases on upfront prices and ignoring a project's lifetime cost, where more durable foreign equipment wins.
A 2005 government plan called for at least 15 percent of China's power to come from wind, solar and hydropower by 2020.
"China is emerging as the world's clean energy powerhouse," said the Pew report.
Until last year,
In a written response to questions, the U.S. Embassy in
In solar power, China already is a top exporter of photovoltaic cells but its factories rely on foreign-made production machinery.
"This dependency is something China would like to reduce," said Haugwitz.
First Solar says it will manufacture equipment in China using new "thin film" technology that local rivals have yet to develop and will train Chinese partners.
"The government's position is, you can come in but you have to offer us something more advanced than we already have or it's going to be more difficult," said Damien Ma, an analyst for Eurasia Group in Washington.
Industry analysts point to Chinese-foreign joint research as a possible way to ease trade strains and maintain access to China's market.
The U.S. and Chinese governments agreed to last year to launch a joint $150 million research venture on clean vehicles, more efficient buildings and other technologies.
Last year, Germany's SolarWorld AG agreed to provide technology to China's Suntech Power Inc., the second-biggest maker of solar cells after First Solar.
"There is no way they are going to fully close the sector," he said.
Associated Press writer Min Lee in
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