Ten Page Research Paper
Wendy Jenkins Patrick Tejada Claudia Perez Eddie Delgado Felicia Ballesteros Erich Espinosa
Team PowerPoint Presentation China: Goldwyn
US: Sunron
Section I: 1. Background.
· China’s share of global emissions has increased rapidly, to more than a quarter in 2019 from less than 10% in 1990
· In 2008 the leadership responded with an unprecedentedly large infrastructure stimulus program that drove even larger emissions increases in the 2009–2012 period than had been the case during the preceding years
· After the Covid-19 lockdowns ended, permitting for new coal power plants accelerated immediately, with more permits being handed out in the first half of 2020 than in all of 2018–2019
· China’s major power utilities are diversified: They are both the world’s largest coal power and renewable energy developers and operators
2. Obtain in-depth information about recent trends in the: a. political
In late October 2020, the Central Committee of the Communist Party of China held its Fifth
Plenary Session to set outlines for the government’s new 14th Five-Year Plan (covering the years
2021-2025).
China will continue to leverage its intelligence-collection assets, particularly its cyber-enabled
economic and industrial espionage to maintain its leadership role in renewable energy.
Beijing will continue to rely on these cyber intelligence assets to identify U.S. organizations and
businesses involved in the renewable energy lifecycle and execute cyber operations against them
with the intent to obtain information related to U.S. national-level policy; international political
and/or economic agreements and treaties; corporate intellectual property and proprietary
information; trade secrets; or other information Beijing deems important to collect to maintain its
position as a leader in Green energy technologies
· China’s bureaucratic administrative system, from division to bureau to ministry and the national level – mainly the division level conducts concrete policy design work
b. The economic environment of the team’s designated country,
· China has a highly diversified economy, dominated by the manufacturing and agricultural sectors. ... The agricultural sector is estimated to have employed 24.7% of the active population in 2020 (World Bank, 2020) and accounted for 7.1% of GDP, although only 15% of the Chinese soil (about 1.2 M km²) is arable.
c. with particular emphasis on regulations that impact the clean energy industry.
· China's government imposed a national renewable energy requirement that is expected to boost the use of renewable energy capacity up to 10 percent by the year 2020. ... Effective next year, the law requires power grid operators to purchase resources from registered renewable energy producers.
3. Business Etiquette a. Understand the importance of first impressions and differences from US.
i. Dress to impress ii. Introductions- Handshakes should not be as firm as in the West. (
Too much eye contact can be interpreted as a challenge.) iii. Business cards- Have a Mandarin and English side. Hand it /
Receive it with two hands. Study it and place it in a business card holder
b. Presentations i. Enter the room in order of seniority. Actively demonstrate great
respect to the leader.The person with the highest rank in your group should introduce the rest of the group.
ii. Use visual aids if you are making a presentation. iii. Avoid jokes, slang and colloquialisms.
4. Provide:
a. Maps
US:
B: Demographic information - China ranks number one in the list of nations by population. The current population
of China is 1,4 billion (18.5% of the world population). The population density of
the country is 153 per sq km (397 people per sq mi). 61 % of the Chinese population is urban.
- US: Today, it is determined that 83 percent of the American population resides in urban neighborhoods, up from 64 percent in 1950. It is projected that 89 percent of the nation’s population will live in urban areas by 2050.
Section II: 1. Industry.
a. Conduct research on significant trends in the clean energy industry in the US and the designated foreign country and make comparisons.
Clean energy is the fastest growing energy source in the U.S. Despite the global pandemic, our climate continues to change causing a greater need for clean energy sources.
United States China
As prices of electricity fall, green hydrogen is expected to become more cost competitive.
Provinces are developing spot markets, using several models. Renewable consumptions are replacing subsidies for renewables
Renewable energy projects which were postponed during the pandemic are expected to rebound.
China is gradually shifting its policy focus from large to central plants to distributed energy, offshore wind, and integrated energy.
Transport biofuel demands will increase. Electricity generated by renewable energy increased sustainability
Electric power generation will remain low. The decline is due to the post-pandemic economic uncertainty of demand.
Both solar output and solar additions grew rapidly in percentage terms, cumulative residential solar capacity doubling in 2020.
Oil production will decline due to demand uncertainty post-pandemic. The oil industry is facing challenges. Oil prices plummeted and continued to bottom out in early 2021.
Wind and solar curtailment fell dramatically, resulting from greater incentives to integrate renewable energy as well as increased power trading.
Liquefied natural gas will suffer long lasting market effects. The demand for natural gas is mainly based on the industrial segment and macroeconomic conditions.
China has taken gradual efforts to switch from heating coal to gas, using an earlier fuel-switching program to focus more on using gas as an economically sustainable source.
Coal consumption will depend on natural gas prices. Production has dropped largely because of reduced demand. However, coal consumption is expected to rise due to economic recovery and increased electricity generation thus resulting in an increase in coal consumption and pricing.
Coal accounted for over 50% of primary energy consumption in 2020 and remains the main source for electricity generation. Consumption of energy reached 4.98 billion tons of standard coal equivalent, up to 2.2% compared to 2019
b. What are the opportunities for a US firm to enter this market? ● The opportunities for a US firm to enter the clean energy market in
China include solutions to energy challenges through partnership with local energy organizations; efficiency, innovation, drive down costs of clean energy technologies, and help to promote growth. Top research, developments, and testing through multinational collaborations open further opportunities for both U.S. and China in the market.
c. How and to what extent have American companies penetrated this country’s market?
● China’s overseas energy finance below shows that the demand for fossil fuels mostly reflects host country demand. To respond to this demand-driven increase of China’s outward fossil-fuel investments, the United States should (i) offer low-interest loans to clean energy projects in emerging countries with growing energy needs and (ii) provide technical and financial assistance to these countries’ governments and regulators to improve their environmental regulatory capacity. The low-interest loans would make clean energy more attractive for host countries and thus reduce host country demand for Chinese fossil-fuel projects, while the technical and financial assistance would increase the cost of fossil fuels relative to clean energy by taking into account negative environmental externalities of non-renewable-energy projects. This dual strategy may also encourage Chinese project developers to invest more in clean energy, as host country demand for fossil fuels would decrease, and the reputational risks of fossil-fuel investment to banks and developers would grow
d. What are the challenges/competitions US companies are or will be facing within doing business in this country?
i. China remains a challenging place to do business, further complicated by the COVID-19 worldwide pandemic. According to the American Chamber
of Commerce (AmCham) China 2020 American Business in China White Paper and 2020 China Business Climate Survey Report, while AmCham members continue to view the market as critical for their business, they generally hold pessimistic views about market growth and future investment plans.
ii. Many of the challenges American firms face are longstanding. Firms seeking to export to China face various headwinds including fragmented and inconsistently implemented local regulatory requirements, preferred treatment for local competitors, and the need to localize products and services to meet Chinese consumers’ expectations and requirements among others.
e.
f. Try to provide specific company examples of:
1. Domestic Goldwind
● A Chinese based energy company that provides wind power solutions. ● They offer wind turbines, standard energy storage converter, standard PV
inverter, and steel-concrete hybrid turbine towers. ● They provide smart wind farms, and offshore wind towers. ● Is a global leader of clean energy, energy conservation and environmental
protection. ● Their operation is researching, development, and manufacturing of
large-sized wind turbines like the Permanent Magnet Direct Drive (PMDD).
● Goldwind expanded in the US, called Goldwind of Americas.
2. US competitor NextEra Energy Resources
● a US company of a power generator of renewable energy from the wind and the sun.
● The largest generator of wind-generating facilities in North America with 126 sites in operation.
● They are also one of the largest generators of solar energy in the US. ● Their target customers ranges from residential and retail business
electricity providers across much of Florida, municipal electric providers across the US and in Canada
● Its parent company is NextEra Energy
2. After gathering material on each topic: 1. the group should meet to develop comparative tables, which show the key
similarities and differences in the clean energy industry between the countries.
US China
Similarities: ● 1977 Department of Energy
Organization Act ● National Energy Act of 1978 ● Energy Security Act of 1980 ● The Energy Policy Act of 1992
(EPACT) ● The Energy Policy Act of 2005
(EPACT5) (P.L. 109-58) ● Energy Independence and Security Act
of 2007 (EISA) ●
● Key Technology R&D Program: Initiated in 1982
● 863 Program: Known more formally as the “National High-Tech Development Plan,” the 863 Program was created in March 1986 to develop a wide range of technology fields.
● 973 Program: The National Basic Research Program focuses on fundamental, basic research and thus complements the 863 Program. Energy and sustainable development have been key features of the 973 Program since its founding at the third meeting of the National Science and Technology Committee in 1997.
● Five-Year Plans: The Five-Year Plans (FYP) are the guide to China’s economic growth. The 10th FYP (for 2001 to 2005) budgeted $2.4 billion for the implementation of 12 “megaprojects” based on the 863 and National Key Technologies Programs aimed at achieving significant technological breakthroughs for China’s industries.
● Electricity Law of 1995. ● Energy Conservation Law of 1997 ● Law for Prevention and Control of Air
Pollution of 2000 ● Renewable Energy Law of 2005. ● Medium and LongTerm Development
Plan for Renewable Energy3
Differences: ● While only about 2,400 of the existing
80,000 dams in the United States produce power, many of the
● China is now the world’s largest hydropower producer with over 229 GW of installed capacity.52
● Biomass electric production was
non-powered dams have a significant hydropower potential.
● Biomass for electric power is arguably the most conventional of all renewable electricity technologies. Approximately 23.5% of non-hydropower renewable electricity produced in the United States came from biomass in 2010
● The net summer wind power capacity in the United States was approximately 59 GW in 2012.119 However, DOE estimates that domestic wind power could reach a capacity of 77 GW or greater by 2030.
estimated to have reached 5,500 MW in 2010, and is expected to increase to 30,000 MW by 2020.40 Biomass is widely used in China’s rural areas where over 80% of the population lives.
● The official MLTPRE target for 30 GW of installed wind power by 2020 has long been surpassed. China became the world’s leader with almost 42 GW of installed wind power capacity in 2010.
·
References Maps:
1. https://www.mdpi.com/2071-1050/8/6/544/htm 2. https://data.bloomberglp.com/bnef/sites/14/2017/10/Chinas-Renewable-Curtailment-and-
Coal-Assets-Risk-Map-FINAL_2.pdf 3. (3-4)
https://www.vox.com/energy-and-environment/2018/5/2/17290880/trump-wind-power-re newable-energy-maps 5. https://vividmaps.com/population-density-map-of-china/
Comparison chart: 1. https://sgp.fas.org/crs/row/R41748.pdf
Section II. Industry 1.(a):
1. https://energywatch-inc.com/energy-market-trends-2021/ 2. https://www.energypartnership.cn/home/china-energy-transition-status-report-2021/
Section one: Map and basic data Size of country Gdp Political system and economic system (6 cultural dimensions) cultural clusters Business etiquette
Section 2: Industry clean energy: laws / regulation business related Environment for industry Policies Gov goals to reduce emission Specific policies relevant to the policies What do they need to know to expand the policies Recommendations (historical background)