Thank you to the Microsoft Research and Innovation Center for hosting us. I am so pleased to be here in Beijing.
This is my third visit as Secretary, but I have been here many times in my personal and professional capacity. In fact, my first visit was in 1984. I have literally seen the transformation of Beijing over the past 30 years.
I am also thrilled to have my good friend, Deputy Secretary Sherwood-Randall, here on behalf of the Department of Energy as part of this historic visit.
This is the first trade mission of our Administration to be designated as a “presidential mission,” which underscores President Obama’s deep commitment to a strong and constructive U.S.-China relationship.
The central message of our visit is: with responsible partnership, we will do more business together and in so doing, we will protect and improve our environment.
Our two markets are the largest on the planet – together, we account for nearly 35 percent of global GDP.
Our populations total more than 1.6 billion people – just shy of a quarter of the world.
Combined U.S. and China trade in goods and services add up to about one-fifth of all international trade.
The size and reach of our economies mean that what we achieve together has a broad and far-reaching impact on international affairs.
As President Obama has said – and I quote: “The United States welcomes the continuing rise of a China that is peaceful, prosperous, and stable, and that plays a responsible role in the world. And we don’t just welcome it, we support it.” He has worked with China’s leaders to make this vision a reality – to advance policies that promote more open and market-driven bilateral trade and investment.
As the agency responsible for strengthening America’s economic ties around the world, the Department of Commerce leads the effort to fulfill President Obama’s vision for our commercial relationship.
We are putting commerce back at the center of our partnership: 1. Through the Joint Commission on Commerce and Trade; 2. Through ties of investment built through SelectUSA, our first-ever, whole-of-government initiative to attract foreign direct investment into the United States; 3. Through trade missions like this one.
Our attitude is simple and straightforward: we want more engagement.
We want to do more business together.
We want a relationship with China founded on mutual interests and mutual respect.
This approach to our relationship stood front and center during President Obama’s visit to China in November.
The shared leadership of our presidents resulted in a landmark agreement to reduce dangerous emissions.
* The United States agreed to cut greenhouse gas emissions up to 28 percent below 2005 levels in the next 10 years; and * China agreed to peak carbon emissions and increase the non-fossil fuel share of China’s energy supply by 2030, if not sooner.
Coming from the world’s two largest energy markets and the world’s second largest carbon emitters, fulfilling these commitments will prove critical to the future of our planet and set an example for others.
Beyond the demands of this landmark agreement, the scale of China’s energy needs and environmental challenges are enormous. China consumes one-third of the world’s oil and almost half of the world’s coal.
China is the largest clean energy market, has more wind and solar power than any other country, and is developing the world’s largest hydropower market.
Yet to meet the commitments made by President Xi in November, China will need to install roughly 1,000 gigawatts of clean energy capacity by 2030.
To put that in perspective: to meet its clean energy goal, China needs to install the equivalent of Spain’s entire power generating capacity every year between now and 2030 – all using only renewable energy.
China has committed itself to this extraordinary undertaking not only to meet its promises on climate change, but also to improve the lives of the Chinese people and to spur economic growth.
From our experience, we know that prioritizing environmental conservation can create massive economic opportunity.
Consider what happened in the United States in the 4 decades since passage of the Clean Air Act. Between 1970, when the law was adopted, and 2012: 1. Emissions of major pollutants dropped by 72 percent; 2. Our GDP grew by 219 percent; and 3. Total private sector employment increased by 88 percent.
America’s experience shows that environmental protection does not impede economic growth; t drives it.
Workers are healthier, which means fewer productive hours are lost to illness and less money is spent on health care.
Investors are increasingly attracted to the market with clean air, clean water, and a healthy environment – and where top talent is willing to live.
Indeed, when a nation commits to reducing pollution, companies that create and produce clean technologies benefit.
And innovation is spurred in new sectors.
This is why China and the United States both made significant commitments in last November’s historic climate agreement.
President Xi’s pledge to peak carbon emissions and increase the non-fossil fuel share of your energy supply by 2030 is bold and ambitious.
To support that vision, President Obama asked us to lead this trade mission.
The goals of our mission are: * To expand U.S.-China cooperation in support of the November climate accord; * To explore opportunities for U.S. businesses to support one of China’s priority goals – smart cities and smart growth; * To bring American expertise to the table in sectors where U.S. companies represent the gold standard – green building and transit, energy retrofitting and energy efficiency, clean air and water technologies among others; and * To foster greater private sector opportunities for U.S. firms stemming from our strong relationship in energy and environmental research.
Fundamentally, we want American companies to play a bigger role in building China’s clean energy future.
China is already globally competitive in solar, wind, and hydropower.
But American companies, like the ones on this trip, can supplement your capabilities.
For example, EcoLab is a global leader in water, hygiene, and energy technologies, and enables businesses to achieve their sustainability goals – thereby reducing pollution from individual companies.
Another of the companies joining us, Dais, and its China partner Dais Beijing, will today sign a $60 million contract for the sale of its HVAC and water products and services for installation throughout China. According to the company, if the 47 million roof-top HVAC units sold in China in 2012 had been equipped with Dais’s products, it would have eliminated the need for up to five coal-fired plans.
It is essential that we work together to protect our air and environment.
These American companies – and many others – bring solutions that will help China address its environmental challenges.
But U.S. business engagement and investment in China can only happen under certain circumstances.
I have heard from numerous American CEOs that they are either avoiding the Chinese market or planning to reduce their exposure here because they fear the rules favor indigenous companies or their intellectual property is at risk or they worry that regulations will change unfairly.
These fears are real and result in a lose-lose situation: China loses out on access to cutting-edge technologies and expertise from U.S. firms on issues from pollution control to mass urbanization to food safety.
And American companies lose an opportunity to expand their business in the world’s largest clean energy market.
We are both leaving far too much opportunity on the table – and that does not have to be the case.
Working with our counterparts in the Chinese government, we hope to make progress in a number of key areas, including cyber security and intellectual property protection among others.
We appreciate the significant cyber security challenges that both of our countries face, but cyber security is not something that can be achieved by governments alone.
We encourage all governments to seek out the expertise of the private sector and technical community before imposing requirements, because our own experience has shown that doing so results in better cyber policies.
We know that we all have to be nuanced in dealing with these critical issues, and each of us wants to protect our national security.
Yesterday, I had the opportunity to meet with the senior leadership of the Chinese government. Even though we have work to do to determine the path forward, we all agreed we must address our cyber security challenges without creating barriers to trade and investment and that China will never become a strong innovation economy without an intellectual property protection regime that is enforced broadly and consistently.
Over the course of three decades, we have seen China open its doors to U.S. businesses and to global commerce. In that time, you have built a thriving economy.
You have lifted nearly 600 million of your people out of poverty – which is almost twice the entire U.S. population.
You have emerged as a nation of great influence in international economic and political affairs.
But with that power comes responsibility. And a significant opportunity for China to influence global commerce. That opportunity is to help strengthen an international system that operates according to principles of economic openness, market transparency, and fair trade practices.
The United States and China can work together to reinforce and strengthen a global economic architecture that does more than serve our respective self-interests.
But we must support high standards, good governance, and genuine multi-lateralism.
To quote Confucius, “our responsibility is heavy and our road is long” – and, I would add, our time is short.
The long road ahead will demand our shared, firm commitment to live up to our responsibilities as global leaders.
The long road ahead will require our urgent and immediate action on the pressing issues of our time – clean energy and climate change, trade and investment, and economic openness.
The long road ahead will need our cooperation – and will lead to a destination where we can do more business together, on a foundation of responsible partnership; and where we can keep the United States and China open for business.
Thank you.
Source: U.S. Department of Commerce
