US tries to trip China at starting line of green energy
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The differences between the energy consumption structure in China and the US are the main factors that are affecting the competition of US technologies in the Chinese market. Since the financial crisis, the US has been seeking cooperation with China over clean energy technologies, but US firms have not seriously studied China's energy structure and market.
China is still mainly reliant on coal, whereas the US uses primarily oil and gas for its energy needs. Factors such as climate, geographical environments, power grid structure, and customer demand and distribution differ sharply between the two nations, and the technical requirements for clean energy technologies are different.
This makes it difficult for the US clean energy technologies to enter the Chinese market. Also, there are many other challenges for Chinese companies entering the market in the US.
China should be cautious of a possible cascade effect brought by the US Section 301 investigation, if other countries use it as an example. During the financial crisis, due to the competition from Chinese battery manufacturers, German battery manufacturers proposed to conduct anti-dumping investigation on China's solar industry.
We should enhance our innovation and competitiveness in the area of core clean energy technologies. After the financial crisis, China is able to stand at the same starting line as other developed countries on the clean energy technology.
We have an excellent chance to catch up with or even surpass the developed countries. Thus, both the government and the energy companies need to increase investment in R&D and innovation.
The author is the CEO of China Energy Investment Net. forum@globaltimes.com.cn
