Energy lands prime spot on Obama-Hu agenda, official says

The Obama administration recently alleged that China’s subsidies for wind industry manufacturing violate World Trade Organization rules.

China’s position as the world’s dominant supplier of rare-earth elements — which are vital to several energy technologies — and recent moves to curb exports have also been a source of concern.

Sandalow, in an appearance on Platts Energy Week, acknowledged the tensions but also emphasized ongoing joint work on low-carbon technologies that he said are in the interest of both countries.

“In big high-profile events, the tendency is often to focus on the areas of disagreement, and those are important. I think it is also worth emphasizing the areas of cooperation, because those are hugely important here as well,” he said.

Sandalow — who has visited China nine times in the service of the Obama administration — noted that both the U.S. and China are heavily reliant on coal and oil.

China and the U.S. are the world’s two largest greenhouse gas emitters, but the two powerhouses have also expanded investment in alternative energies that are viewed as a vital market of the future.

“There is a race on. We can learn from each other even as we compete in the global marketplace, and that is one of the things that we will be talking about at this summit,” Sandalow said.

He said some American businesses have had “great success” in dealing with protection of intellectual property when working with the Chinese, while acknowledging “great frustration” by others.

The two nations have several joint programs to bolster development of technologies such as carbon capture, increasing the energy efficiency of buildings, and many other areas.

Sandalow called building the Chinese market key because China, over the next 20 years, is forecast to build as much square footage as currently exists in the United States.

“They are going to build an entire United States of building stock over there in the next 20 years,” Sandalow said. “That is an enormous opportunity for U.S. business, which has tremendous technologies in this area.”

Energy Secretary Steven Chu is meeting with his Chinese counterparts Tuesday ahead of Hu’s Jan. 19 visit with President Obama.