[Federal Register Volume 75, Number 25 (Monday, February 8, 2010)]
[Notices]
[Pages 6180-6183]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-2494]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
Mission Statement; Secretarial China Clean Energy Business
Development Mission; May 16-21, 2010
AGENCY: Department of Commerce, ITA.
ACTION: Notice.
-----------------------------------------------------------------------
Mission Description
U.S. Secretary of Commerce Gary Locke will lead a senior-level U.S.
business development mission to China May 15-21, 2010 to promote U.S.
exports in a broad range of leading U.S. technologies related to the
following sectors: clean energy, energy efficiency, and electric energy
storage and transmission and distribution. The mission will make stops
in Beijing, Hong Kong and Shanghai.
The mission will focus on helping U.S. companies already doing
business in China to increase their current level of exports and
business interests, as well as, U.S. companies that are experienced
exporters enter China for the first time in support of creating green
jobs in the United States. Participating firms will gain market
information, make business and government contacts, solidify business
strategies, and/or advance specific projects. In each of these targeted
sectors, participating U.S. companies will meet with prescreened local
partners, agents, distributors, representatives, and licensees. The
agenda will also include meetings with high-level national and local
government officials, networking opportunities, country briefings, and
seminars.
The delegation will be comprised of approximately 20-25 U.S. firms
representing a cross-section of U.S. industries that have developed
products, services or technologies to reduce greenhouse gas emissions.
The mission will also be open to representatives of U.S. trade
associations in the targeted industries with commercial interest in
China.
[[Page 6181]]
Representatives of the U.S. Trade and Development Agency (USTDA)
and the Export-Import Bank of the United States (Ex-Im) will be invited
to participate to provide information and counseling on their programs,
as they relate to the China market.
Commercial Setting
China's rapid economic growth has been accompanied by a large
increase in demand for energy and a dramatic jump in greenhouse gas
emissions. Other pressing issues include China's limited energy
resources and need to increase industrial energy efficiency. In
response to these challenges, China's central government has made clean
energy and energy efficiency strategic priorities. In the 11th Five-
Year Plan, the government has set targets to reduce energy intensity
per unit of GDP by 20% as well as reduce emissions for major
pollutants, such as sulfur dioxides, nitrogen oxide, and carbon
dioxide, by 10%.
The Chinese Government's passage of the new Renewable Energy Law
has codified many of these mandates, including a renewable energy
portfolio of at least 15 percent by 2020. This law is partly
responsible for the increase in new renewable energy projects and
offers U.S. producers an important opportunity to provide solar
photovoltaics, waste-to-energy, biomass, geothermal, biofuels, and
resource mapping technologies. China's solar power production in 2008
reached 1.5 million kilowatts; for solar power production, China
currently ranks number one in the world. In 2009, solar energy
investment in China reached $1.9 billion.
In addition to renewable energy, China is committed to
significantly increasing its nuclear power generating capacity as a
means to reduce its reliance on coal-fired power plants for electricity
production. Mainland China has 11 nuclear power reactors in commercial
operation, 20 are currently under construction, and construction is
slated to begin on many more. According to the ``China Greentech
Report,'' China's ambitious nuclear program aims to increase its
nuclear capacity significantly. The government has revised its previous
target for 2020 from 40GW to 75GW, representing a compound annual
growth rate of 18%.
As approximately 65 percent of China's total energy consumption and
80 percent of all electricity generation is sourced from China's vast
coal reserves, a number of coal-related stimulus measures have been put
forward by China's National Development and Reform Commission (NDRC).
The first tranche of $34.3 billion of central government stimulus
funding was allocated in April 2009, including provisions for
increasing coal-fired power production efficiency, advancing emissions
reduction strategies, and upgrading the electric grid network. With 80
new coal-fired power plants scheduled for construction, the outlook for
U.S. clean coal technology companies and power plant construction and
service providers remains very strong.
The Chinese recognize that the industrial energy efficiency sector
offers the least costly way to reduce greenhouse gas emissions and will
help China achieve its ambitious energy efficiency goals. China's
government mandates to reduce pollution provide U.S. firms with the
opportunity to supply clean tech solutions.
Driven by increased industrialization and rural electrification,
China is also building a new electricity infrastructure driven by
increased industrialization and rural electrification China's
electricity consumption is forecast to grow at an average of 7 percent
per year through 2020. The current grid infrastructure system is unable
to support greater electricity movement from western power generation
resource bases to eastern electricity consumers. Thus, the electricity
network sector, including traditional transmission/distribution systems
and smart grid technologies, offers huge market opportunities for U.S.
companies engaged in information and communication technology, power
production, and renewable energy.
Beijing: With a population of more than 16 million, China's capital
offers unparalleled access to policy-makers and key government
agencies, including the National Development and Reform Commission, the
Ministry of Environmental Protection, and the Ministry of Industry and
Information Technology. Since China's energy and environmental sectors
are regulated by the central government, interaction with officials
from these bureaus is often critical to a company's success.
There is also a strong local market for clean energy technologies
in Beijing due to its size, its political and economic importance.
Thanks to Beijing's status as an autonomous municipality, its municipal
government can approve foreign investment projects independently from
the central government up to a value of $100 million.
Although Olympics-related investment has contributed to
improvements in the city's overall environment, energy consumption and
air pollution remain serious problems in Beijing. U.S. companies have
considerable opportunities to provide the know-how and technology for
Beijing to continue on its path to developing a clean energy market.
Hong Kong: While Hong Kong, a Special Administrative Region of the
P.R.C., is an integral part of China, it operates as a distinct
economic zone, rendering the island city, an especially effective entry
point for SMEs seeking to establish a presence in or expand their reach
into mainland China and the Asia Pacific region. Distinguished also by
a per capita GDP above $30,000, the island enjoys preferential trade
and investment channels into and out of China, hosting many of Asia's
top trade shows. In addition, Hong Kong has an efficient, transparent
legal system based on common law principles that offer rigorous
intellectual property rights protection and an open government
procurement process. These attributes provide U.S. companies, in
particular SMEs, relatively easy access to mainland China through Hong
Kong, often more rapidly and with fewer cultural barriers than by
heading directly to the mainland.
For the Secretarial Mission, Hong Kong offers the delegation access
to reputable business partners engaged in the ``Cleaner Production
Partnership Program.'' Under this program, the governments of Hong Kong
and neighboring Guangdong Province are jointly subsidizing energy and
environmental upgrades to hundreds of industrial plants in the Pearl
River Delta region of the mainland, most of which are operated from or
owned by persons from Hong Kong. In the field of green building, Hong
Kong has introduced mandatory standards and approved over 200 building
energy audits, which are expected to drive major sales opportunities.
Hong Kong is also home to major property developers and real estate
management firms with projects in the mainland. In Hong Kong there are
as many LEED accredited professionals and a larger concentration of
U.S. architectural firms than in all of mainland China. In power
generation, Hong Kong is aggressively pursuing fuel switching and other
clean energy solutions, as well as renewable technologies. Given its
strong R&D capabilities and talent, Hong Kong provides opportunities
for U.S. firms in photovoltaics, lighting, and related fields. The Hong
Kong government is promoting electric batteries, vehicles and
associated infrastructure.
Shanghai: Shanghai is known as the commercial and financial capital
of China. With an estimated population of 21 million people, Shanghai
is the
[[Page 6182]]
second largest municipality (after Chongqing) as well as the largest
city in China. After 16 years of double digit growth, Shanghai's
economy started to slow substantially in 2008 and early 2009 with the
onset of the global economic crisis. However, by the third quarter of
2009, Shanghai's gross domestic product (GDP) growth had recovered
somewhat to 7.1%. Shanghai's per capita GDP in 2008 was $10,529, three
times the national average. Through November of 2009, total trade for
Shanghai reached $247 billion compared to $321 billion for the full
year of 2008. With its strategic location at the mouth of the Yangtze
River, Shanghai also serves as the country's central transportation
hub, offering a developed air, rail, sea, and road transportation
infrastructure. Shanghai is China's largest port and is now the world's
busiest port in tonnage.
Shanghai faces the same severe energy challenges as many other
cities. The city recently launched the multi-billion dollar Shanghai
Urban Environment Plan, seeking to address urban planning and
environmental needs for the city. The Shanghai Municipal Government's
energy strategy has focused on the diversification of energy supplies,
increasing energy efficiency, and introducing clean energy technologies
into the energy mix. Shanghai's energy demand has grown approximately
6-8% annually; as a result, Shanghai's building codes have been changed
to encourage energy efficient technologies and design. More than 80
buildings are certified or applying for LEED certification and Shanghai
spends 3% of its GDP on environmental protection.
By 2010, total renewable energy capacity is likely to increase
drastically with wind power generation reaching 250-300 MW, solar photo
thermal equivalent area at 2.5 million square meters, and photovoltaic
power generation at 10 MW. As the host of the Shanghai 2010 World Expo,
Shanghai's government has launched a large number of urban
infrastructure and city beautification projects in line with the Expo
theme ``Better City, Better Life'', promoting the theme of urban
environmental sustainability. Shanghai is also considering a ``100,000
Solar Roofs Initiative'' to add solar panels to homes and businesses.
Mission Goals
This trade mission will demonstrate the United States' commitment
to assisting U.S. clean energy companies sell new energy efficient
technologies in China, and will help China achieve its goals to reduce
overall greenhouse gas emissions. The mission will help U.S. businesses
initiate or expand their exports to China by making business-to-
business introductions, providing first-hand market access information,
and providing access to government decision makers. The mission
specifically aims to:
Assist U.S. companies already doing business in China to
increase their business there;
Facilitate the entrance of U.S. companies that are
experienced exporters to the China market for the first time;
Provide advocacy for U.S. companies interested in
participating in major projects;
Supply information on U.S. Government trade financing and
technical assistance programs, through the participation of
representatives from USTDA and Ex-Im Bank.
Mission Scenario
The Clean Energy Business Development Mission to China will include
three stops: Beijing, Hong Kong and Shanghai. In each city,
participants will:
Meet with high-level government officials
Meet with prescreened partners, agents, distributors,
representatives and licensees
Meet with representatives of the Chambers of Commerce,
industry and trade associations
Attend briefings conducted by Embassy officials on the
economic and commercial climates
Receptions and other business events will be organized to provide
mission participants with further opportunities to speak with local
business and government representatives, as well as U.S. business
executives living and working in the region.
Proposed Mission Timetable
Hong Kong
Sunday--May 16
Arrive in Hong Kong.
Economic/Market Briefing by U.S. Government Officials.
Welcome Dinner.
Monday--May 17
Meetings with Local Government Officials.
Business Event/Briefing with Local Industry
Representatives.
Individual Company Appointments.
Reception Hosted by the U.S. Consul General.
Shanghai
Tuesday--May 18
Economic/Market Briefing by U.S. Government Officials.
Reception Hosted by the U.S. Consul General.
Wednesday--May 19
Meetings with Local Government Officials.
Business Event/Briefing with Local Industry
Representatives.
Individual Company Appointments.
Beijing
Thursday--May 20
Economic/Market Briefing by U.S. Government Officials.
Meetings with Government Officials at selected Ministries.
Business Event/Briefing with Local Industry
Representatives.
Reception Hosted by TBD.
Friday--May 21
Individual Company Appointments.
Meetings with Senior Chinese Government Officials.
Mission Ends/Depart TBD.
Participation Requirements
All parties interested in participating in the Clean Energy
Business Development Mission must complete and submit an application
package for consideration by the Department of Commerce. All applicants
will be evaluated on their ability to meet certain conditions and best
satisfy the selection criteria as outlined below. Approximately 20-25
companies will be selected from the applicant pool to participate in
the mission.
Fees and Expenses
After a company has been selected to participate in the mission, a
payment to the Department of Commerce in the form of a participation
fee is required. The participation fee will be $10,000 for large firms
and $8,500 for a small or medium-sized enterprise (SME), which includes
one principal representative.\1\ The fee for each additional firm
[[Page 6183]]
representative (large firm or SME) is $3,300.
---------------------------------------------------------------------------
\1\ An SME is defined as a firm with 500 or fewer employees or
that otherwise qualifies as a small business under SBA regulations
(see http://www.sba.gov/services/contracting opportunities/
sizestandardstopics/index.html). Parent companies, affiliates, and
subsidiaries will be considered when determining business size. The
dual pricing schedule reflects the Commercial Service's user fee
schedule that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional
information).
---------------------------------------------------------------------------
Expenses for travel, lodging, some meals, and incidentals will be
the responsibility of each mission participant.
Conditions for Participation
An applicant must submit a completed and signed mission application
and supplemental application materials, including adequate information
on the company's products and/or services, primary market objectives,
and goals for participation. If the Office of Business Liaison receives
an incomplete application, the Department of Commerce may either:
reject the application, request additional information/clarification,
or take the lack of information into account when evaluating the
applications.
Each applicant must also:
Certify that the products and services it seeks to export
through the mission are either produced in the United States, or, if
not, marketed under the name of a U.S. firm and have at least fifty-one
percent U.S. content. In cases where the U.S. content does not exceed
fifty percent, especially where the applicant intends to pursue
investment and major project opportunities, the following factors,
often associated with U.S. ownership, may be considered in determining
whether the applicant's participation in the trade mission is in the
U.S. national interest:
U.S. materials and equipment content;
U.S. labor content;
Repatriation of profits to the U.S. economy; and/or
Potential for follow-on business that would benefit the
U.S. economy;
Certify that the export of the products and services that
it wishes to export through the mission would be in compliance with
U.S. export controls and regulations;
Certify that it has identified to the Department of
Commerce for its evaluation any business pending before the Department
of Commerce that may present the appearance of a conflict of interest;
Certify that it has identified any pending litigation
(including any administrative proceedings) to which it is a party that
involves the Department of Commerce; and
Sign and submit an agreement that it and its affiliates
(1) have not and will not engage in the bribery of foreign officials in
connection with company's/participant's involvement in this mission,
and (2) maintain and enforce a policy that prohibits the bribery of
foreign officials.
Selection Criteria for Participation
Selection will be based on the following criteria in decreasing
order of importance:
Demonstrated export experience in China and/or other
foreign markets;
Suitability of a company's products or services to the
China market and likelihood of a participating company's increased
exports to or business interests in China as a result of this mission;
Current or pending major project participation; and
Rank/seniority of the designated company representative.
Additional factors, such as diversity of company size, type,
location, demographics, and traditional under-representation in
business, may also be considered during the review process.
Referrals from political organizations and any documents, including
the application, containing references to partisan political activities
(including political contributions) will be removed from an applicant's
submission and not considered during the selection process.
Timeframe for Recruitment and Applications
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://www.ita.doc.gov/doctm/tmcal.html) and other Internet Web sites, press releases to general and
trade media, direct mail, broadcast fax, notices by industry trade
associations and other multiplier groups, and publicity at industry
meetings, symposia, conferences, and trade shows. The Commerce
Department's Office of Business Liaison and the International Trade
Administration will explore and welcome outreach assistance from other
interested organizations, including other U.S. Government agencies.
Recruitment for this mission will begin immediately upon approval.
Applications can be completed on-line at the China Clean Energy
Business Development Mission Web site at http://www.trade.gov/CleanEnergyMission or can be obtained by contacting the U.S. Department
of Commerce Office of Business Liaison (202-482-1360 or
[email protected]). The application deadline is Friday,
February 26, 2010. Completed applications should be submitted to the
Office of Business Liaison. Applications received after Friday,
February 26, 2010 will be considered only if space and scheduling
constraints permit.
Contacts
The Office of Business Liaison, 1401 Constitution Avenue NW., Room
5062, Washington, DC 20230, Tel: 202-482-1360, Fax: 202-482-4054, E-
mail: [email protected].
Sean Timmins,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. 2010-2494 Filed 2-5-10; 8:45 am]
BILLING CODE P