Identifier
Created
Classification
Origin
09SHANGHAI241
2009-05-29 06:30:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Shanghai
Cable title:  

CODEL PELOSI DISCUSSES ENERGY CONSERVATION AND EMISSIONS

Tags:  ENRG SENV KIPR KGHG TRGY OVIP PELOSI NANCY CH 
pdf how-to read a cable
VZCZCXRO5508
RR RUEHCN RUEHGH
DE RUEHGH #0241/01 1490630
ZNR UUUUU ZZH
R 290630Z MAY 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 7985
INFO RUEHBJ/AMEMBASSY BEIJING 2824
RUEHCN/AMCONSUL CHENGDU 2012
RUEHGZ/AMCONSUL GUANGZHOU 0469
RUEHSH/AMCONSUL SHENYANG 2003
RUEHHK/AMCONSUL HONG KONG 2180
RUEHIN/AIT TAIPEI 1799
RUEAEPA/HQ EPA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 8632
UNCLAS SECTION 01 OF 09 SHANGHAI 000241 

SENSITIVE
SIPDIS

STATE PASS TO CEQ SUTLEY
USDOC FOR MAC AND MAS
USDOC ALSO PASS USPTO FOR WU
USDOE FOR INTERNATIONAL
EPA FOR INTERNATIONAL-KASMAN/GIANNINI-SPOHN
NSC FOR LOI, SHRIER
STATE FOR EAP/CM-HABJAN, EAP/PD-STOLTZ, GALT, AND EMMONS
STATE ALSO FOR OES DAS MIOTKE, OES/EGC, OES/ENV, AND OES/PCI
STATE ALSO FOR S/SECC-STERN, S/P-GREEN, EEB, AND ECA

E.O. 12958: N/A
TAGS: ENRG SENV KIPR KGHG TRGY OVIP PELOSI NANCY CH
SUBJECT: CODEL PELOSI DISCUSSES ENERGY CONSERVATION AND EMISSIONS
REDUCTION WITH SHANGHAI ENTREPRENEURS

REF: A) SHANGHAI 229, B) SHANGHAI 231, C) SHANGHAI 232, D) SHANGHAI 233

UNCLAS SECTION 01 OF 09 SHANGHAI 000241

SENSITIVE
SIPDIS

STATE PASS TO CEQ SUTLEY
USDOC FOR MAC AND MAS
USDOC ALSO PASS USPTO FOR WU
USDOE FOR INTERNATIONAL
EPA FOR INTERNATIONAL-KASMAN/GIANNINI-SPOHN
NSC FOR LOI, SHRIER
STATE FOR EAP/CM-HABJAN, EAP/PD-STOLTZ, GALT, AND EMMONS
STATE ALSO FOR OES DAS MIOTKE, OES/EGC, OES/ENV, AND OES/PCI
STATE ALSO FOR S/SECC-STERN, S/P-GREEN, EEB, AND ECA

E.O. 12958: N/A
TAGS: ENRG SENV KIPR KGHG TRGY OVIP PELOSI NANCY CH
SUBJECT: CODEL PELOSI DISCUSSES ENERGY CONSERVATION AND EMISSIONS
REDUCTION WITH SHANGHAI ENTREPRENEURS

REF: A) SHANGHAI 229, B) SHANGHAI 231, C) SHANGHAI 232, D) SHANGHAI 233


1. (SBU) SUMMARY: In a May 25 roundtable discussion on energy
conservation and emissions reduction with Shanghai
entrepreneurs, Speaker Nancy Pelosi and Representatives Markey,
Sensenbrenner, Blumenauer, and Speier underscored the importance
of U.S.-China cooperation on energy issues, especially in aiding
the global effort to reach a comprehensive agreement on
greenhouse gas emissions reduction. They highlighted the role
of technology in addressing energy concerns and emphasized that
intellectual property rights (IPR) protection is paramount in
spurring innovation. Each of the entrepreneurs gave a snapshot
of energy conservation efforts in their sectors, which included
autos, power generation, steel, construction, chemicals,
alternative energy, air conditioning, and energy consulting.
The entrepreneurs noted great strides that Chinese industries
have made in reducing energy consumption across sectors, and how
China is outpacing the United States and others in certain
areas. Energy-saving technology innovation was a recurring
theme, and all agreed that more government investment,
cooperation in research and development, IPR protection, and
sharing of best practices is needed. Participants also called
for more leadership from government and industry leaders in
developing and implementing energy reduction targets, green
building standards, and improving energy conservation
capabilities across various industries.


2. (SBU) SUMMARY CONTINUED: In discussing pursuit of a global
agreement to address climate change, participants noted the wide
variety and great extremes in development of both regions within
China and countries of the world. While everyone has a
responsibility to reduce greenhouse gas emissions, several

entrepreneurs believed a differentiated approach/treatment
according to one's ability would be needed to make any agreement
plausible. Participants believed that countries should build
upon previous agreements and learn from any mistakes therein to
move forward on climate change. Speaker Pelosi stressed that we
are all in this together, no matter what our stage of
development. While much has been said about blame for the
global climate crisis, Pelosi emphasized joint responsibility
for tackling the problem, noting that countries such as China
have unique opportunities to address the climate issue. She
cautioned that a differentiated approach must not be used as an
excuse to shirk responsibility. Representatives Markey and
Sensenbrenner noted that all stakeholders need to do more on
energy and climate change and that the only way to make
meaningful progress on this issue would be for countries to
agree to a transparent, binding, and verifiable agreement,
something that China and others have been unwilling to do to
date. END SUMMARY.


3. (U) On May 25, Speaker Nancy Pelosi, four other Members of
Congress, and Consulate staff discussed energy conservation and
emissions reduction with a multi-sector group of Shanghai
business leaders. Shanghai Municipal People's Congress (MPC)
and National People's Congress (NPC) representatives also
attended (see paragraphs 26 and 27 for a list of the U.S. and
Chinese roundtable participants).

MUCH DONE, BUT MORE TO DO ON CLIMATE AGREEMENT, TECHNOLOGY, AND
CAPACITY BUILDING
-------------- --------------
--------------


4. (SBU) Roundtable host HU Wei, Vice Chairman of the Shanghai
MPC Standing Committee, opened the discussion by noting that
Speaker Pelosi and members of the Congressional delegation are
quite knowledgeable on and have done much work in the areas of
energy conservation and climate change. Speaker Pelosi thanked
China for its efforts, and noted that Shanghai, one of the
country's most developed cities, is a leader in this area. She
underscored that the topics to be discussed during the

SHANGHAI 00000241 002 OF 009


roundtable are of importance to the United States, which is
eager and determined to work with China to decrease dependence
on coal, improve energy usage and save the planet.
Representative Edward Markey (D-MA) indicated that Congress was
in the process of passing greenhouse gas reduction legislation.
At the upcoming climate change conference in Copenhagen this
December, Markey indicated that the United Sates will work with
countries to put together a plan to reduce global greenhouse gas
emissions -- a global agreement, sector by sector, that is
transparent, enforceable, and verifiable. He asked the
entrepreneurs if such an agreement is achievable.
Representative James Sensenbrenner (R-WI) highlighted the role
of technology in reducing greenhouse gases, saying that such
technology is not well developed at this time and that a
worldwide effort is needed to spur innovation. He cautioned
that innovative technology development would not be possible
without proper intellectual property rights (IPR) protection,
and he asked the entrepreneurs for their take on the Chinese
Government's and the Chinese private sector's efforts to protect
both domestic and international IPR. Representative Earl
Blumenauer (D-OR) said that he was struck by the wide variety
and great extremes of China's regions -- some are rich, some
poor, some developed, some underdeveloped, but all possess
energy and vitality. He asked how China could ensure that these
regions, with varying levels of capacity, could keep pace with
the compliance requirements of a global climate change
agreement. Representative Jackie Speier (D-CA) noted that the
United States and China combined account for about 40 percent of
the world's greenhouse gas emissions. Therefore both countries
need to look at ways to move forward on greenhouse gas reduction
and the development of green technologies. She asked the group
how both sides could cooperate in the area of technology to
green both nations. Following these opening remarks, Hu Wei
turned to the entrepreneurs to each give a brief introduction
and respond to the remarks from the CODEL.

SHANGHAI GENERAL MOTORS: ON THE ROAD TO SUSTAINABLE DEVELOPMENT
-------------- --------------


5. (SBU) DING Lei, General Manager of Shanghai General Motors,
explained that the company is a joint venture between Shanghai
Automotive Industry Corporation (SAIC) and General Motors.
Established in 1997 and beginning auto production in 1999,
Shanghai GM has produced more than 600,000 autos this year.
With a low ratio of motor vehicles to population compared to the
United States, China needs to develop convenient transportation
to control emissions and reduce waste. In order to keep auto
companies on the path of sustainable development, there needs to
be a synergy between government, industry, and the people.
Shanghai GM has endeavored to make breakthroughs in promoting
green manufacturing in its auto plants. From just 2003 to 2005,
the company reduced its per manufactured automobile energy
consumption by 0.3 tons of coal equivalent (TCE) annually. To
protect the environment, Shanghai GM has put in place several
energy conservation policies and has encouraged suppliers to
become greener (NOTE: Shanghai GM has been working on a Greening
the Supply Chain program with Washington based NGO the World
Environment Center. END NOTE.). To this end, the company is:
1) researching ways to increase the efficiency of the
traditional internal combustion engine by decreasing energy
consumption by five percent; 2) developing hybrid power vehicles
capable of saving 15 percent of energy (and perhaps 40 percent
by the end of 2009); 3) along with U.S. partners, developing
electric vehicles to be released on the China market in 2010 or
2011; and 4) promoting the research and development of fuel cell
vehicles. Ding stressed that China's energy consumption mix is
different from most developed countries, but the government and
industry have been working on strategies to develop small
displacement vehicles and improve the energy consumption mix.
He said he is confident that China will continue to make better,
more efficient products.

SHANGHAI 00000241 003 OF 009



SHANGHAI POWER: TECHNOLOGY KEY TO DIVERSIFYING ENERGY RESOUCES
-------------- --------------


6. (SBU) Shanghai Power Co. Ltd., the largest power company in
the city, accounts for one third of Shanghai's total coal
consumption, using approximately 15 million tons of coal
annually for power generation. Shanghai Power Chairman ZHOU
Shiping said that with the guidance and support of the
government, the company has been trying to eliminate inefficient
power plants (capacity of fewer than 125 megawatts) and replace
them with newer, more efficient technology (capable of
generating 1700 megawatts). Shanghai's development is
fast-paced, with five inefficient plants scheduled to be shut
down in the near future. The energy efficiency of Shanghai's
plants has increased from 30 to 45 percent in recent years.
Highlighting the May 11, 2009 New York Times article on China
outpacing the United Sates on cleaner coal fired power plants,
Zhou noted that the energy efficiency of many of China's plants
is higher than those in the United States. For example, many
plants in the United States use 30-40 year old equipment.
Additionally, China uses higher pressure and temperatures, which
are more efficient. To reduce its reliance on coal, China has
doubled its total wind energy capacity in each of the past four
years and is in the process of constructing 14 wind power
generation sites each with a capacity of 100 megawatts. Four of
these sites will be located in Shanghai.


7. (SBU) Zhou said that all countries have a common
responsibility to reduce greenhouse gases, but stressed that
with so many developed and under developed regions, China would
need to come up with differentiated treatment to maintain a
balance among all regions in meeting reduction targets. He
believed countries could reach a comprehensive agreement on
climate change if they take a step-by-step approach. On
technology, Zhou said that China is increasingly employing more
cost-effective and efficient technologies and that the United
Sates and China have many ideas and much expertise in these
areas. The two countries should cooperate more on technology
research and development as a means to reduce emissions and
lower energy intensity of power generation facilities.

BAO STEEL: INDUSTRY RESTRUCTURING AND INTERNATIONAL COOPERATION
-------------- --------------


8. (SBIU) Bao Steel is the largest steel producer in China,
accounting for around six percent of China's total steel
production. Its products are used primarily in the domestic
market, with some exports. The company has collaborated with
firms such as General Electric to develop environmental
protection measures and technologies. Since 2003, the company
has promoted energy efficiency and has participated in several
international fora, such as the Asia Pacific Partnership.


9. (SBU) LI Haiping, Deputy Director of Bao Steel's Development
and Planning Committee, said that in 2005, the Central
Government mandated a restructuring of the steel and cements
industries and set emission reduction targets. He noted that
China's steel industry is in a different stage of development
compared to the United States. As an example, U.S. steel
producers widely employ "mini mills" to reprocess used steel
scrap while Chinese firms rely primarily on raw materials and
mines for inputs for steel production. With this gap between
"the east and the west," Li noted that much "basic work" needs
to be done to assess the areas to best target for efficiency
improvements in China's steel industry. Technology is a big
component of industry restructuring, and Li hopes that China,
the United Sates, and Europe could work together on technology
development and sharing intellectual property. He hoped that
governments could allocate funding for such joint projects.


SHANGHAI 00000241 004 OF 009


WORLD EXPO 2010: ENVIRONMENTAL FOUCUS AND GREEN BUILDINGS
-------------- --------------


10. (SBU) From May to October 2010, Shanghai will host the 2010
World Expo, expected to be the largest in history attracting as
many as 70 million visitors. The Expo will have an
environmental focus, and energy efficiency and green technology
will feature prominently. DAI Liu, Chairman of Shanghai Expo
(Group) Co. Ltd., said that organizers have investigated how to
make the five permanent Expo structures more environmentally
friendly since 20 percent of energy consumption comes from
buildings. To create more environmentally friendly buildings,
organizers have employed China's national green buildings
standards as well as the U.S. Leadership in Energy and
Environmental Design (LEED) standards to improve building design
and function, the first such use of both standards
simultaneously. Using cutting-edge building technology along
with traditional technology has been paramount in meeting green
building standards as both have their place in building planning
and construction. Dai outlined some of the innovations in air
conditioning such as the use of wooden walls, and use of the
Huangpu River that bisects the Expo site to control indoor
temperatures, as well as use of solar technology and LED
lighting to supply building heating, lighting and electricity.
Expo organizers hope to win the Ministry of Construction's
coveted "Golden Award" and invite other organizations to
evaluate their green building efforts.

SHANGHAI INSTITUTE OF ARCHITECTURAL DESIGN AND RESEARCH:
INCREASED DEMAND FOR GREEN BUILDING AND CONSTRUCTION
-------------- --------------
--------------


11. (SBU) ZHANG Yanping, President of Shanghai Institute of
Architectural Design and Research echoed Dai's comments about
the importance of green buildings. The Shanghai Institute of
Architectural Design and Research (SIADR) has helped formulate
national green building standards and has promoted the spread of
advanced building technology such as the recycling and reuse of
solid waste. The institute has also advised the government on
energy conservation guidelines and policies. Each year SIADR
undertakes 30-40 research projects mainly financed with
government funds. The institute provides consulting services to
entities such as the Shanghai Expo Bureau and convenes
conferences and seminars to increase awareness of green building
trends. There is increased demand in China for green building
practices as well as market development for green services and
technologies. While China has started late with regard to green
building principles, it has made considerable positive progress,
especially in the areas of building/construction energy
conservation and emission reduction. Together with partners
such as the World Wildlife Fund and the Global Environment
Facility, SIADR is keeping in step with international trends.

SHANGHAI BUILDING MATERIALS CORPORATION: GOVERNMENT LEADERSHIP
IS KEY
-------------- --------------
--------------


12. (SBU) SHI Derong, Chairman of the Shanghai Building
Materials Group Corporation (SBMGC),stressed that energy
conservation and emission reduction is paramount to solving
global climate change, especially for costal cities threatened
by rises in sea level, such as Shanghai. SMBGC has worked on
the development of multi-crystal silicon solar panel technology
as well as energy saving glass to help increase energy
efficiency. Work still needs to be done to improve energy usage
in the energy-intensive cement industry, a key component of the
building/construction sector.


13. (SBU) Shi believed that leadership from the government is

SHANGHAI 00000241 005 OF 009


key in achieving sustainable green building practices, including
establishment of clear targets, standards, and incentives.
Although there are vast differences between the United States
and China, both countries are moving in the right direction on
fostering energy conservation and emission reduction policies.
He, too, believed that IPR enforcement is key to China's
progress in this area, especially since other countries, such as
the United Sates, have some of the most advanced technologies.
SMBGC and others are currently researching whether U.S. and U.K.
technologies such as photothermal energy can be used in China to
heat water on the roofs of buildings to make it easier to
generate steam for electricity generation. China has its own
intellectual property and therefore earnest enforcement of IPR
is a win-win for both domestic and foreign firms.

SHANGHAI WUJING CHEMICAL: BALANCE AMONG THE INDUSTRY NEEDED
-------------- --------------


14. (SBU) HU Yongkang, Chairman of Shanghai Wujing Chemical
Corporation, noted that the chemical industry is different from
other sectors in terms of energy consumption. Chemical
production can be very energy-intensive and the chemical
industry is continually monitored by the government and urged to
lower its energy consumption. Wujing Chemical has made great
strides in reducing energy consumption, decreasing it by ten
percent annually in recent years. New technologies such as
those used to recycle or reclaim waste or gases are also crucial
to remaining competitive, maximizing cost savings, improving
energy efficiency and decreasing emissions. There is an
imbalance within China's chemical industry with a wide disparity
in technology and techniques among companies. Outdated plants
have been closed, which helps environmental protection, but at
the same time displaces workers. Hu believed that proper
management from both the government and the industry is needed
to keep the chemical industry on the green path and that China's
energy management contract system has helped in this regard.
Companies have received funding for technology from the
government and in turn have provided feedback on best practices.

SHANGHAI GOLTE (GAOYI) ENERGY: MUST MAXIMIZE ENERGY EFFICIENCY
-------------- --------------


15. (SBU) Shanghai Gaoyi Energy Co. Ltd., an energy performance
contracting company, provides professional conservation services
such as efficiency diagnosis as well as technology integration,
application, and investment. CAI Jin, General Manager of
Shanghai Gaoyi Energy, said that China's rapid development,
including construction, transportation, and industrialization
and its export-oriented economy, has created a high demand for
energy. Maximizing energy efficiency is crucial for further
economic development and Gaoyi has worked on over 1000 projects
with partners such as the World Bank, the Global Environment
Facility, and others to develop best practices in energy
conservation.

SHANGHAI AIR-SYS: SMALL ENETERPRISES HAVE A ROLE, GOVERNMENT
NEEDS TO SUPPORT
-------------- --------------
--------------


16. (SBU) DONG Chenwei, Deputy General Manager of Shanghai
Air-Sys Air Conditioner Systems, explained that Shanghai Air-Sys
is a small company and urged governments to factor in how small
and medium sized enterprises can help mitigate climate change.
Shanghai Air-Sys began environmentally-friendly conversions of
air conditioner systems in 2000 and introduced several new air
conditioner models in 2005. In 2008, new, more efficient models
saved 3000 TCE, creating RMB 33 million (USD 4.8 million) in
total sales. The company has also worked with the semiconductor
industry to improve that industry's efficiency and technology.
While the company has raised its own funds for green endeavors,

SHANGHAI 00000241 006 OF 009


Dong said that government support through an innovation fund
also has been very helpful.

SHANGHAI DONGHAI WIND POWER: COOPERATION ON NEW TECHNOLOGY
-------------- --------------


17. (SBU) Shanghai Donghai's wind power project is the first
large-scale offshore wind farm under construction in China. The
wind farm will be comprised of 34 wind turbine generators with a
combined maximum stand-alone capacity reaching 100 megawatts.
The designed annual equipment utilization time is 2600 hours and
the wind farm will provide 267 million kilowatt hours per year
to the power grid. The project is to be completed no later than
the May 1, 2010 start of the 2010 World Expo. ZHU Kaiqing,
General Manager of Shanghai Donghai Windmill, said the project
will save 80 thousand TCE, 40 thousand tons of CO2 and greatly
reduce SO2 emissions. He also underscored the need for
cooperation on technology, and cited two projects with U.S.
firms as good foundations for cooperation. The United States is
a leader in energy technologies and Zhu is optimistic that both
countries can cooperate in this regard to decrease the cost of
energy-saving technology and spread its use worldwide.

SHANGHAI ENERGY CONSERVATION ASSOCIATION: A DIFFERENTIATED
APPROACH ACCORDING TO ABILITY IS NEEDED TO REDUCE EMISSIONS
-------------- --------------
--------------


18. (SBU) Shanghai Energy Conservation Association is a
comprehensive non-profit organization with members from
energy-consuming enterprises, manufacturers of energy-intensive
products, and other organizations specializing in energy
management, research, design, education, and information
sharing. According to SHI Mingrong, Director-General of
Shanghai Energy Conservation Association, its mission is to
mobilize all its members to conserve energy and improve
efficiency in compliance with relevant laws and policies. The
Association provides consulting services to its 640 members and
has advised some foreign (including U.S.) firms.


19. (SBU) Shi stressed that now is the best environment ever
for energy conservation and emission reduction due to government
incentives and directives and more enthusiasm from enterprises.
Still, Shi emphasized that all involved need to do more. With
regards to previous agreements to reduce greenhouse gasses, Shi
said that they are like children: even if they are not the
healthiest, you cannot just abandon them and get new ones;
therefore countries must come together and build on the existing
frameworks. He noted that the protection of IPR ensures
continued innovation. But holders of IPR for technology that
can save the earth should proceed from a larger, moral interest,
not from profit margins. As when climbing a mountain, the more
able should help out the less able to reach the top. Greenhouse
gases have existed for a long time, and Shi said there is a
question as to who should bear the responsibility for these
emissions. China's share of the world's greenhouse gases is
limited, but the country still has a responsibility to reduce
greenhouse gas emissions for future generations. Not every
citizen should shoulder the same burden and that there should be
a differentiated approach with all moving in the same direction,
according to their capability.

THE SPEAKER RESPONDS: WE'RE ALL IN THIS TOGETHER, AND WE CANNOT
SHIRK RESPONSIBILITY
-------------- --------------
--------------


20. (SBU) Speaker Pelosi thanked the participants for their
candid views and found hope and encouragement in their efforts
and ideas. In reaching a climate agreement, Pelosi stressed, we
are all in this together, no matter what stage of development.

SHANGHAI 00000241 007 OF 009


"We are all children in this family," she said, "and our mother
-- mother earth -- is sick." All need to work to clean the air
for future generations and protect the environment, including
recognizing the scarcity of water resources as it is needed for
drinking, farming, as well as industry. For the United States,
Pelosi said market solutions need to be employed since the
United States does not have subsidy programs similar to China.
IPR protection is a paramount need, especially in fostering
research and development, and Pelosi was encouraged by China's
innovative ideas.


21. (SBU) Speaker Pelosi noted that much has been said about
blame for the global climate crisis. Some in the United States
wish that we were in an earlier stage of our own economic
development and could have the opportunity to address climate
issues early, as China now can. Countries need to come to an
agreement on how to reduce greenhouse gases, but Pelosi
cautioned that a differentiated approach must not be used as an
excuse to shirk responsibility. She also said that any climate
agreement must consider and bring along all people, both rich
and poor.


22. (SBU) The Speaker said that her delegation now has a better
understanding of the many challenges faced by China, and at the
same time China has an opportunity to take the lead in areas
such as cleaner coal power generation facilities (as noted in
the May 11 New York Times article). Pelosi underscored that the
delegation had come to China to discuss these difficult issues
with respect, openness, and candor, but at the end of the day,
our mother (mother earth) is dying. While transiting Alaska en
route to Shanghai, the delegation learned of the melting of the
polar region and its effect on polar communities. She stressed
that all must take part in preserving the Arctic ice cap that is
now in serious jeopardy. Even countries (such as China) that
are not close to the Arctic Circle all have a responsibility to
preserve the ice cap, said Pelosi. China is rich with ideas and
has much it can contribute to Arctic preservation efforts.

MARKEY AND SENSENBRENNER: A BINDING, VERIFYABLE AGREEMENT IS KEY
TO ADDRESSING CLIMATE CHANGE
-------------- --------------
--------------


23. (SBU) Representative Markey added that the U.S. side was
impressed with the talent and seriousness of the entrepreneurs
and is encouraged by the work that all the different sectors are
undertaking to reduce greenhouse gas emissions. He echoed the
sentiments of Shi Mingrong of the Shanghai Energy Conservation
Association that everyone needs to do more. Markey agreed that
countries need to build on the previous protocols (Kyoto and
Bali). While mistakes have been made with the previous
protocols and their implementation, lessons have also been
learned which have been used as a means to move forward. Markey
stressed that countries must come together and do all they can
in their own ways under a binding climate agreement.


24. (SBU) Referencing Senator Kerry's speech at the Bali
conference, Representative Sensenbrenner reinforced that the
United States will not ratify an agreement that is not
transparent, binding, and verifiable, something that China has
been reluctant to support. He cautioned that if China does not
take the sentiment of the Kerry speech to heart and refuses to
make binding commitments, countries will be talking for the next
ten years on how to resolve the climate change dilemma.


25. (SBU) Hu Wei closed the discussion, saying such
face-to-face discussions are crucial in enhancing mutual
understanding. The United States and China come from different
backgrounds, but share the same dream in protecting the global
environment. Both sides must work together to foster
cooperation and understanding and to promote the development and

SHANGHAI 00000241 008 OF 009


use of new technology for sustainable development and energy
conservation.


26. (U) U.S. PARTICIPANTS

Speaker Nancy Pelosi and Mr. Paul Pelosi

Rep. Edward Markey

Rep. James Sensenbrenner

Rep. Earl Blumenauer and son Jon Blumenauer

Rep. Jackie Speier

Acting U.S. Consul General in Shanghai Simon Schuchat

Professional Staff Members to the Speaker and Representatives

David Gossack, Consulate Commercial Section Chief

Jake Jacanin, Consulate Environment, Science, Technology and
Health Officer (Notetaker)

Gregory Harris, Consulate Commercial Officer


27. (U) CHINESE PARTICIPANTS

-- ENTREPRENEURS:

LI Haiping, Deputy Director of the Development and Planning
Committee, Bao Steel

DAI Liu, Chairman of Shanghai Expo (Group) Co. Ltd.

DING Lei, General Manager of Shanghai General Motors

SHI Mingrong, Director-General of Shanghai Energy Conservation
Association

HU Yongkang, Chairman of Shanghai Wujing Chemical Corporation

ZHU Kaiqing, General Manager of Shanghai Donghai Windmill

ZHOU Shiping, Chairman of Shanghai Power Co. Ltd.

ZHANG Yanping, President of Shanghai Institute of Architectural
Design and Research

SHI Derong, Chairman of Shanghai Building Materials Group
Corporation

CAI Jin, General Manager of Shanghai Gaoyi Energy Co. Ltd.

DONG Chenwei, Deputy General Manager of Shanghai Air-Sys Air
Conditioner Systems

-- SHANGHAI MUNICIPAL PEOPLE'S CONGRESS (MPC):

HU Wei, Vice Chairman of Shanghai MPC Standing Committee

GAN Zhongze, Member of Shanghai MPC Standing Committee and
Chairman of Shanghai NPC Urban Construction and Environment

LIU Shicai, Member of Shanghai MPC Finance and Economy Committee

XU Yi, Deputy Director of the General Office of Shanghai MPC
Standing Committee

ZHOU Ya, Economist General of Shanghai Development and Reform
Commission

SHANGHAI 00000241 009 OF 009



-- NATIONAL PEOPLE'S CONGRESS (NPC):

LI Zhaoxing, Chairman of NPC Foreign Affairs Committee, former
Chinese Ambassador to the United States and former Minister of
Foreign Affairs

ZHOU Wenzhong, Chinese Ambassador to the United States

CHEN Guomin, Minister-Counselor of the Chinese Embassy to the
United States

ZHAO Yong, Deputy Director-General of Foreign Affairs Bureau of
the General Office of NPC Standing Committee

WANG Yixing, Deputy Director of Foreign Affairs Bureau of the
General Office of NPC Standing Committee

ZUO Liang, Staff of Foreign Affairs Bureau of the General Office
of NPC Standing Committee

PENG Fang, Director, General Office of NPC Foreign Affairs
Committee

HE Shaoren, Deputy Director-General of the Information Bureau of
the General Office of NPC Standing Committee

XU Dong, Deputy Director, General Office of NPC Foreign Affairs
Committee

QI Lujiang, Section Chief of the General Office of NPC Foreign
Affairs Committee

LIU Bing, Cadre of the General Office of NPC Foreign Affairs
Committee

CHENG Lei, Counselor and Director of the Department of North
American and Oceanian Affairs, Ministry of Foreign Affairs

ZHANG Yongchao, Third Secretary of the Department of North
American and Oceanian Affairs, Ministry of Foreign Affairs

CHEN Ya'ou, First Secretary of the Department of North American
and Oceanian Affairs, Ministry of Foreign Affairs

ZHANG Yu, Interpreter, Interpretation Office of the Ministry of
Foreign Affairs

SUN Juan, Interpreter, Interpretation Office of the Ministry of
Foreign Affairs

WANG Wenjie, Section Chief of the Disease Prevention and Control
Bureau, Ministry of Health

LIU Xiaoliang, Cadre of the Disease Prevention and Control
Bureau, Ministry of Health


28. (U) Speaker Pelosi's staff has cleared this meeting report.
SCHUCHAT