from the White House, Office of the
Press Secretary
FOR
IMMEDIATE RELEASE
January 19, 2011
FACT SHEET: U.S.-China Economic Issues,
U.S.-China Commercial Relations
The
United States and China share one of the most important trade and
economic relationships in the world. The U.S. exports $100
billion of goods and services to China, making China our largest
trading partner after Canada and Mexico. Those exports support
more than half a million U.S. jobs. China’s GDP growth is
expected to have reached 10 percent in 2010, and U.S. goods and
services exports to China are growing almost two times as fast as
overall U.S. goods and services exports. We seek to base our
relationship on mutual prosperity, respect for the rules-based trading
system, and a deep commitment to resolve outstanding economic
issues. President Obama and President Hu took note of the
following commitments to strengthen the U.S.-China trade and economic
relationship.
Strengthening
Intellectual
Property Rights Protection
China
committed to strengthen intellectual property rights enforcement to
protect innovative industries and the jobs they create.
·
Private
sector
experts suggest decreasing China’s software piracy rate by 50
percent could increase legitimate software sales by $4 billion.
The United States supports China’s commitment to assess and ensure its
government’s use of legal software, by, among other measures, 1)
allocating government budget funding for legal software purchases, 2)
auditing the use of legal software and publishing the results of those
audits, and 3) promoting the use of licensed software in private
companies and in state owned enterprises through software asset
management programs.
·
The
United
States welcomed China’s agreement to hold accountable violators
of intellectual property on the internet, including those who
facilitate the counterfeiting and piracy of others, and to strengthen
IPR protections in China’s libraries. China has also agreed to
clarify the IPR liabilities of relevant third parties, like landlords,
managers, and operators of markets that sell counterfeit products.
Eliminating
Discriminatory
Innovation Policies
·
The
United States and China committed that 1) government procurement
decisions will not be made based on where the goods’ or services’
intellectual property is developed or maintained, 2) that there will be
no discrimination against innovative products made by foreign suppliers
operating in China, and 3) China will delink its innovation policies
from its government procurement preferences.
·
China
agreed to eliminate discriminatory “indigenous innovation” criteria
used to select industrial equipment for an important government
catalogue prepared by the Ministry of Industry and Information
Technology, to ensure that it will not be used for import substitution,
the provision of export subsidies, or to discriminate against American
equipment manufacturers in Chinese government programs targeting these
products.
·
The
United States welcomed China’s commitment to let its “3G” third
generation and future technologies develop free of discriminatory
technology or standards preferences. China’s 3G infrastructure
investment is expected to reach $10 to $12 billion in 2011.
·
The
United
States supports China’s commitment to allow foreign companies
equal opportunities to participate in the development of the country’s
“smart” electric power grid. China committed that purchases of
smart grid products and technologies will be made solely on commercial
considerations with no discrimination against foreign companies.
China also will ensure that foreign stakeholders have full
opportunities to participate in an open, transparent process for
establishing smart grid standards. China also committed to make
purchases solely on commercial considerations. China plans to
spend $10 billion annually on smart grid investments.
Expanding
Market
Access for U.S. Manufactured Goods, Agricultural Products and
Services
China
committed to submit this year a robust revised offer to join the
Government Procurement Agreement (GPA).
·
China
committed
that its revised GPA offer would include not just commitments
for central government purchases, but also purchases by sub-central
entities. The Chinese central government has indicated that it
alone procures more than $88 billion in goods and services annually;
sub-central entities’ procurement is even more significant.
The
United States and China are building on their successful and growing
agricultural trade relationship. U.S. agricultural exports to
China last year exceeded $12 billion, including soybeans, cotton, and
wheat.
·
The
United
States welcomed China’s December 2010 lifting of Avian
influenza-related bans on U.S. poultry products from Idaho and Kentucky,
and urged prompt action to lift the four remaining U.S. state-level
bans.
###
FACT
SHEET:
U.S.–China Commercial Relations
China
is
a key market for U.S. exports. Those exports are generating
jobs in every corner of the United States and across every major
sector. These involve some of our country’s largest companies,
but also an increasing number of small and medium-sized enterprises.
In
preparation for this visit, several large purchases have been approved
including for 200 Boeing airplanes valued at $19
billion. In addition, the Chinese government has
indicated that its companies signed 70 contracts for $25 billion in
U.S. exports from 12 states. These included sectors ranging from
auto parts to agriculture, machinery to chemicals. In addition,
11 investment contracts were signed worth $3.24 billion.
Additional, transactions were announced or showcased, exceeding $13.1
billion in total value with approximately $987.8 million in U.S. export
content. These deals worth over $45 billion in increased
exports will help support an estimated 235,000 jobs in the United
States. These cross-border collaborations, both public and
private, underpin the expanding U.S.-China commercial partnership,
contributing to economic growth and development in both
countries. A number of these transactions highlight the increased
collaboration in such areas as clean energy and green
technologies. Examples of some of the deals associated with
this visit include:
- Boeing
Airplane Sales:
China's
agreement to approve airline contracts for 200 orders covers
aircraft to be delivered over a three-year period,
2011-2013. The approval, the final step in a $19B package of
aircraft, will help Boeing maintain and expand its market share in the
world's fastest growing commercial aircraft market. Including
737s and 777s, the agreement help supports more than 100,000
American jobs, including those in Boeing and its suppliers
throughout the U.S.
- General
Electric --China Ministry of
Railways (MOR) Letter of Intent on High Speed Rail Technology Transfer
and Purchasing Rolling Stock and Signaling Equipment: The Chinese Ministry of
Rail (MOR) and General Electric (GE) have signed a letter of intent
expanding upon an existing strategic partnership to bring Chinese
high-speed rail technology to the United States. GE and China South
Locomotive & Rolling Stock Corporation Limited (CSR) plan to form a joint
venture in the United States to manufacture high- and medium-speed
electric multiple unit trains. GE estimates that new business
generated by the HSR JV could support up to 3,500 jobs in the United
States. GE also will agree to manufacture locomotives for China
and will provide components for 500 or more locomotives. The LOI will
support efforts to capture new business opportunities valued at up to
$1.4 billion with an estimated $360 million in U.S. export content,
supporting up to 200 GE Transportation jobs.
- Navistar
Inc.-- JAC Truck and Engine Joint Ventures: Navistar
has announced central Chinese government approval for a $400 million,
50-50 joint venture with the state-owned Anhui Jianghuai Automobile
Company (JAC). Navistar will export services and parts to be used
in the manufacture of diesel engines and commercial trucks. The JV
will develop, manufacture, market, and sell heavy duty trucks and light
to medium/heavy duty engines, primarily in China. The joint
venture will be based in Hefei City, Anhui Province. Once
production begins, Navistar anticipates that many components will be
sourced from the United States. Direct U.S. exports during the first
year of the joint venture are estimated at $15 million, but are
forecast to grow significantly over the next five years as production
increases. Navistar estimates the net employment benefit of the joint
ventures to the United States economy at 200 jobs in the United States,
mainly in the field of engineering and other services.
- General
Electric-Shenhua
Gasification Joint Venture: GE and China Shenhua Energy Company Limited (Beijing,
China) have formed a
joint
venture company in order to combine GE’s expertise in
gasification and cleaner power generation technologies with Shenhua’s
expertise in building and operating gasification and power generation
facilities. The joint venture will seek to advance cleaner coal
technology solutions for industrial chemicals, fuels, and power
generation. GE estimates approximately $150 million in U.S.
exports over the first five years of the joint venture, mainly related
to technology licensing, engineering, and R&D support.
Additionally, the joint venture has potential to generate $1.5 to 2.5
billion in U.S. exports over the long term.
- General
Electric-Huadian Joint Collaboration Agreement on Decentralized Energy
Combined Heat and Power Projects: General
Electric is signing a Joint Collaboration Agreement with China Huadian
Engineering Co., Ltd for cooperation on Decentralized Energy Combined
Heat and Power (DECHP). This agreement will be a binding
agreement to develop, market, and sell DECHP generators, an efficient
alternative to coal-fired power plants. GE estimates that at least 50
DECHP gas turbine generator sets will be sold in China in the next ten
years, resulting in $500 million in sales and $350 million in U.S.
export content, supporting over 200 jobs in the United States.
- Cummins
Hybrid Bus Development and Commercialization: Cummins,
Inc (Cummins; Columbus, Indiana) and Zhengzhou Yutong Bus Compay,
(Yutong; Zhengzhou, China) have negotiated an agreement to jointly
develop and commercialize hybrid power systems for the Chinese bus
market. Cummins is presently a supplier to Yutong, and hopes to
increase its penetration of the Chinese market by jointly developing
and producing a hybrid bus primarily for the Chinese market.
Cummins estimates a potential for over $500 million in annual sales.
This will be the first partnership of its kind involving Cummins hybrid
power systems and a major vehicle manufacturer. Cummins claims that up
to 500 jobs could be created in the U.S. related to production, sales,
and service of hybrid systems for commercial vehicles for the U.S. and
Chinese markets. Cummins also expects an annual savings of 21,000
metric tons of CO2 emissions.
- General
Electric-AVIC
Avionics Joint Venture Agreement: GE
and
AVIC will sign an agreement to form a new joint venture
company to market globally advanced avionics systems for future
commercial aircraft. The GE-AVIC joint venture is expected to
support 300 high-tech jobs in Michigan and Florida.
- UPC
Management
Wind Power Agreements:
UPC Management, LLC (UPC) is a Miami, Florida based wind power
developer, having interests in 24 sites in 12 Chinese
provinces. The company has negotiated a Strategic Framework
Agreement (SFA) with the China Guo Dian Corporation (CGD), which
develops, builds, operates, and distributes electricity and heat.
Under the SFA, CGD and UPC will form ventures leading to the
establishment of wind power generation joint ventures. The total
value of the SFA investments could reach $1.5 billion, of which UPC
will invest up to $735 million.
- Honeywell—Haier
Group
Memorandum of Understanding for Global Strategic Cooperation:
Honeywell International Inc., headquartered in Morris Township, New
Jersey (Honeywell), entered into an agreement with Haier Group (Haier)
to collaborate on the development and promotion of low-emission, high
energy-efficiency products and solutions. Honeywell estimates the total value of the
five-year MOU at $53 million per annum, or $265 million and U.S. export
content at $42 million per annum, or $210 million.
- LP Amina
MOU with Beijing Energy: LP
Amina, environmental engineering company headquartered in Novi,
Michigan, signed a Memorandum of Understanding (MOU) with Beijing
Energy to sell de-nitrification engineering, equipment and other
potential environmental and boiler efficiency improvement
solutions. This MOU creates a framework for potential long-term
cooperation to reduce emissions and improve efficiency across
Beijing Energy's power plant facilities in China.
- LanzaTech--Bao
Steel
Joint Venture to Build an Ethanol Plant:
LanzaTech
Inc.,
a wholly-owned subsidiary of LanzaTech New Zealand, headquartered
in Roselle, Illinois (LanzaTech), and Bao Steel Group Corporation (Bao
Steel), will conclude a Contractual Joint Venture Contract for the
construction and operation of a demonstration ethanol production
facility in China. The facility will utilize waste flue gas from Bao
Steel’s Shanghai steel mill as feed stock and LanzaTech proprietary gas
fermentation technology to produce ethanol.
- LanzaTech--
Wuhan
Kaidi General Research Institute of Engineering and Technology
Company Limited Ethanol Production Letter of Intent:
LanzaTech
Inc.,
a wholly-owned subsidiary of LanzaTech New Zealand, headquartered
in Roselle, Illinois (LanzaTech), and Wuhan Kaidi General Research
Institute of Engineering and Technology Company Limited (Wuhan), will
conclude a Letter of Intent for the construction and operation of a
demonstration ethanol production facility in China. The facility will
utilize Wuhan supplied waste biomass synthesis gas as feed stock and
LanzaTech proprietary gas fermentation technology to produce ethanol.
- MVP RV
-- Winston Battery Limited Recreational Vehicle MOU: MVP RV
(MVP; Riverside, California) is a privately-held U.S. company that
produces self-powered and trailer Recreational Vehicles. The
company has an existing distributor relationship with privately-held
Winston Battery Limited (Winston; Shenzhen, China). Winston,
through the proposed MOU, plans a major capital injection into MVP RV
in the amount of $310 million to promote motor home exports to
China. Additionally, Winston Battery Limited will provide capital
for the development of all-electric recreation vehicles and charging
systems. The goal is to export over 10,000 Class A (self-powered,
bus-sized) motor homes and 20,000 Class C (self-powered, van-sized)
motor homes to China in the next 3-4 years. MPV estimates the
value of these exports to be over $5 billion. The MOU specifies
the intention to export vehicles to China through Winston and the
eventual incorporation of an all-electric powertrain to future
vehicles.
- Caterpillar
Inc. – Caterpillar China Investment Co. Ltd. Business Agreement: Caterpillar
(Peoria, Illinois) and Caterpillar China Investment Co. Ltd. – a wholly
owned subsidiary of Caterpillar – will sign an agreement under which
$1.4 billion in U.S.-manufactured mining and construction equipment,
and diesel and gas turbine engines will be shipped to China. The
intra-company sale will support approximately 7,567 jobs in the United
States.
- LP Amina
MOU with Yixing Union Congregation Co. Ltd: LP
Amina,
a multinational environmental engineering
company headquartered in Novi, Michigan, signed a Memorandum of
Understanding (MOU) with Yi Xing Union Congregation Co., Ltd,
a Chinese energy and chemical company. The MOU will
formalize plans in advance of an expected contract signing, which will
establish a collaborative pilot project to demonstrate LP Amina’s
patent-pending Coal to Chemicals System.
This innovative technology will couple chemical
production with power generation and enable the use of thermal energy
generated from the chemical production for additional efficiency
power generation. This process would also reduce emissions
by nearly 90% compared to the conventional production process in use
today. Once commercialized, LP Amina estimates that this
technology could be deployed in the United States creating up to 500
jobs.
- Optimax Systems, Inc --
Shanghai Micro-Electronics Equipment Co., Ltd. Precision Optics Sale:Optimax Systems, Inc.
(Ontario, New York), a manufacturer of high-precision optical
components, has signed a new agreement for supplying precision optics
to Shanghai-based Shanghai Micro-Electronics Equipment Co., Ltd. (SMEE)
for incorporation into SMEE's advanced lithography equipment.
SMEE is rapidly expanding its presence in the semi-conductor, MEMS and
flat panel display manufacturing industries in China and throughout
Asia. By combining their innovative technologies, SMEE and
Optimax can further expand potential for next-generation lithography in
the Chinese market. Optimax plans a $4 million expansion of its
ultra-precision manufacturing capacity to support this new agreement
with SMEE, which will include adding 50 new manufacturing jobs for
high-precision optical technicians at its Ontario, New York
facilities. This follows on a $2 million facility expansion
already completed to support business done with SMEE to date.
- Erickson
Air-Crane Heavy Lift Helicopter Sale: Erickson Air-Crane
(Portland, Oregon) announces the pending sale of five S-64
(commercial) helicopter aircraft to China Taicang Aircrane Company Ltd.
The transaction has nearly 100% U.S. export content. While
the detailed commercial terms of this agreement are presently under
negotiation, the companies have recently executed an Acceptance of
Proposal that provides for the five aircraft to be delivered over a two
year period beginning with the delivery of the first aircraft by
February 28, 2011.
- Celanese
-- Wison Group Memorandum of Understanding for Ethanol Production:
Celanese Far East Co., a subsidiary of Celanese Corporation
headquartered in Dallas, Texas (Celanese), and Wison Group Holding
Limited (Wison), will conclude a Memorandum of Understanding for the
construction and operation of an industrial ethanol production facility
in China. Wison plans to invest in a coal gasification unit based
on clean coal technology to produce synthesis gas per Celanese specs,
and Celanese plans to invest approximately $650 million in an Ethanol
Complex using the output from Wison as feed stock, and Celanese
proprietary technology, to produce ethanol for industrial use, and
potentially for fuel ethanol. This transaction is valued at
approximately $815 million, with $50-80 million in U.S. export
content. Celanese estimates project implementation will support
an estimated 200-250 U.S. jobs.
- Westinghouse
Electric
Company -- China Baotou Nuclear Fuel (CBNF) Fuel Fabrication
Agreement: Westinghouse
Electric
Company concluded a contract to design, manufacture and
install fuel fabrication equipment for use by CBNF to manufacture fuel
for the Westinghouse AP-1000 nuclear power plants currently under
construction at sites across China.
- Westinghouse
Electric
Company-- China State Nuclear Power Technology Corporation (SNPTC)
Nuclear
Cooperation Agreement:
Westinghouse and SNPTC announced a two-year extension of a nuclear
cooperation agreement that focuses on continued deployment of the
Westinghouse AP-1000 nuclear power plant in China as well as service
and maintenance, technology development and strategic investment.
The agreement extends the commitment of both Westinghouse and
SNPTC to explore future cooperation in areas of strategic interest
including large passive plant development; follow-on AP-1000
cooperation; services and research and development.
- Boeing,
Honeywell,
and Pratt & Whitney -Air China Aviation Biofuels MOU:
During President Hu’s visit, the Boeing Company and
Air
China announced an agreement to initiate planning of an inaugural
international flight using sustainable aviation biofuels.
Furthermore, Boeing, Honeywell, and Pratt & Whitney announced an
agreement on the details of the technical support they will offer to
Air China in the planning, execution, and analysis of the inaugural
biofuel flight. This demonstrates the strong link between the
U.S. and China Sustainable Aviation Biofuels industries and aviation’s
significant contribution to trade between the U.S. and China.
Boeing,
Honeywell,
and Pratt & Whitney will also announce an agreement on
the details of the technical support they will offer to Air China in
the planning, execution, and analysis of the airline’s inaugural
biofuel flight. This demonstrates the strong link between the
U.S. and China Sustainable Aviation Biofuels industries and aviation’s
significant contribution to trade between the U.S. and China. This
agreement will highlight the future of the aviation industry, which
contributes an estimated $4 trillion to the global economy annually.
- AES--
Chongqing Energy Investment Group Memorandum of Comprehensive
Cooperation:
AES China, a subsidiary of AES Corporation headquartered in Arlington,
Virginia, entered into an agreement with Chongqing Energy Investment
Group Ltd (Chongqing) to jointly develop, construct and operate a
series of renewable energy projects, including hydroelectric, wind,
ventilation air methane, clean coal and low carbon technology projects.
This transaction is valued at approximately $300 million.
- Alcoa
and
the China Power Investment Corporation MOU:
Alcoa
(New
York, New York) and the China Power Investment Corporation (CPI)
announced a Memorandum of Understanding to collaborate on a broad range
of aluminum and energy projects representing an estimated $7.5 billion
in investment. The two companies will intensify their
collaboration in China on developing clean energy projects and outside
China on a broad range of initiatives. The total employment impact to
the U.S. economy of this transaction is not known at this time;
however, Alcoa estimates that this undertaking will improve the global
competitiveness of the company and support jobs in the United States.
- Ener1 –
Wanxiang Battery Joint Venture: Ener1,
Inc. (New York, New York), a manufacturer of Lithium Ion battery
systems for electric vehicles and Wanxiang Group, a leading Chinese
auto components manufacturer, seek to enter into an MOU to jointly
produce advanced battery systems for electric cars and power utilities
in Asian markets. This MOU builds upon a binding May 2010 letter
of intent and seeks to establish a China-based joint venture to produce
lithium-ion cells, modules and battery packs for use in electric
vehicles and power grid energy storage applications for the Chinese
market and also export to the markets of Taiwan, Hong Kong and
Japan. Ener1 executives credit U.S. DOE match-making and
financial assistance with the company’s success in gaining access to
the Chinese market. The company expects that participation in
this joint venture would be part of a larger strategy to develop
manufacturing and design capacity in the United States, supporting up
to 1,500 jobs in Indiana.
- Emberclear
and
CERI Licensing Agreement:
EmberClear (Calgary, Alberta Canada), with offices in Houston, TX,
signed an exclusive license with Clean Energy Research Institute
(CERI), a clean energy technology subsidiary of Huaneng Power Group of
China, to become a global licensing and development partner.
EmberClear will provide engineering and project development services
for economic and efficient clean fossil energy solutions and scientific
consulting services in international projects. EmberClear and
CERI highlighted the first project of this partnership, a 270 Megawatt
IGCC power plant in Pennsylvania that recently received all relevant
permits.
- Peabody
Energy MOU with China Huaneng Group: Peabody
Energy, headquartered in St. Louis, Missouri, and Calera Corporation,
headquartered in Los Gatos, California, signed a Memorandum of
Understanding with China Huaneng Group to develop a supercritical clean
coal electricity generation project with carbon capture in the
Xilinguole League Prefecture of China’s Inner Mongolia Autonomous
Region. The project would include a large surface coal mine using
best practices for safety and environmental excellence, produce clean
power, and convert flue gas carbon dioxide into cement-like building
materials.
- Peabody
Energy and Yankuang Xinjiang Nenghua Company Limited MOU: Peabody
Energy, headquartered in St. Louis, Missouri and Yankuang Xinjiang
Nenghua Company Limited, a wholly owned subsidiary of Yankuang Group
Company Limited, signed a Memorandum of Understanding to jointly
develop an integrated clean energy center in China’s Xinjiang
Autonomous Region. The center will include construction of an
ultra supercritical clean coal electricity generation project and
coal-to-natural gas conversion facility fueled by a new open-cut coal
mine.
- AEP –
China Huaneng: American
Electric
Power Company, headquartered in Columbus, Ohio, signed
cooperation agreements with three Chinese entities, China Huaneng,
State Grid Corporation of China and China National Offshore Oil
Corporation. The cooperation agreement with China Huaneng, China’s
largest power company, relates to evaluating a Carbon Capture and
Storage (CCS) technology developed by China Huaneng and improving the
efficiency of coal-fired power plants. The overall goal is to advance
commercialization of CCS in both the U.S. and China.
- AEP –
State Grid Corporation of China: American
Electric
Power Company, headquartered in Columbus, Ohio, signed
cooperation agreements with three Chinese entities, China Huaneng,
State Grid Corporation of China and China National Offshore Oil
Corporation. The cooperation agreement with China National
Offshore Oil Corporation (CNOOC), the largest offshore oil exploration
and production company in China, contains CNOOC investment in the AEP's
Mountaineer Plant commercial-scale carbon capture and underground
storage project, and plans to explore opportunities
for the
utilization of captured carbon dioxide for enhanced oil and natural gas
recovery in the United States. This is expected to benefit the
development of CCS technology in the United States and China.
- Duke
Energy
Corporation--ENN
Group Co. Ltd. Eco-City MOU: ENN
Group Co. Ltd. and Duke Energy
Corporation have concluded a memorandum of understanding (MOU)
outlining the terms and scope of cooperation in the development and
utilization of clean energy solutions for the Eco-City, a demonstration
project intended to showcase clean coal, electric vehicles and energy
efficient building technologies in Langfang, China.
- EPIC
Clean Technologies--Tengzhou Huawen Paper
Co. Paper Joint Venture Agreement: EPIC Clean Technologies Corporation,
headquartered in Houston, Texas, and Tengzhou Huawen Paper Co. (THP),
will conclude a Contractual Joint Venture Agreement for the
redevelopment of the THP paper mill. The newly formed Joint
Venture will assume ownership of the existing power plant and install a
new clean coal gasification power plant to increase power and steam
production, lower CO2 emissions by 35 percent, eliminate most other
pollutants, and reduce coal consumption. The project includes a license
agreement for use of EPIC gasification technology.
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