WASHINGTON — The U.S. and China should team up on clean energy development as the two giant economies stake out their spots as global leaders in the emerging field, an expert said Monday.
As central players in climate and energy negotiations, the U.S. and China should work in a “mutually beneficial” way in clean energy industry development, said Joanna Lewis, assistant professor of science, technology and international affairs at Georgetown University, at a Brookings Institution conference.
“We all have roles to play in these industries going forward,” Lewis said during a conference.
“It’s more important that we have a solid foundation for discussions with these countries about clean energy technology before we launch into a trade war preemptively.”
Lewis stressed the importance of renewable energy technologies in terms of low-carbon economies, energy security benefits and job creation.
“As the world’s top two energy consumers and carbon emitters, the U.S. and China play a decisive role,” Lewis said. It is a misconception that the U.S. is competing with China to become a renewable energy technology leader because two countries excel in different areas, she added.
China advances in manufacturing whereas the U.S. trumps in research and development.
“China has taken impressive strides to improve its manufacturing capability in wind turbines and solar photovoltaic systems,” she added.
There has recently been tension between the countries in the wake of claims by U.S. steelworkers on unfair trade. Last month, the U.S. Steelworkers filed a petition complaining that China’s unfair trade policies put at risk American green technology manufacturing jobs and could widen the global trade deficit in the sector.
The group accused the Chinese government of giving loans to its solar companies that are about five times of total market capital of those companies, giving Chinese companies an unfair advantage because they are, in essence, being subsidized by the government.
U.S. Trade Representative Ron Kirk has started to investigate China’s green technology practices in wind and solar power products, as well as advanced batteries and energy-efficiency vehicles.
“Certainly that raises the question whether they’re subsidizing these companies. The U.S. solar companies have to have the access to capital markets in order to get financing,” said Jeff Bencik, a solar analyst with KBRO Kaufman Bros., an investment banking and advisory firm, in a phone interview.