Cablegate: Doe Secretary Chu's Lunch with Chinese State Councilor Liu

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P 300927Z NOV 09
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UNCLAS SECTION 01 OF 02 BEIJING 003190

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SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: OVIP PREL PGOV ECON PARM MARR SENV ENRG KGHG CH

SUBJECT: DOE SECRETARY CHU'S LUNCH WITH CHINESE STATE COUNCILOR LIU
YANDONG

REFTEL: BEIJING 2865

(U) Sensitive but unclassified. Please handle accordingly.

SUMMARY
-------
1. (U) Following the CERC Signing ceremony, State Councilor LIU
Yandong hosted a lunch. During lunch, Madam Liu highlighted the
importance of U.S.-China cooperation on electric vehicles (EVs) and
said she believes that this collaboration has a promising future.
U.S. Secretary of Energy Steven Chu also expressed his wish to
extend cooperation on clean energy, such as new battery technology,
clean coal, and joint efforts to tackle climate change. Both agreed
that industry's involvement is key to effective and efficient
cooperation. The Clean Energy Research Center (CERC) can serve as a
good basis for expanding cooperation, said Liu. Chinese officials
who participated in the lunch included: WAN Gang, Minister of
Ministry of Science and Technology (MOST), LIU Qi, Deputy
Administrator of the National Energy Administration (NEA), ZHANG
Shaochun, Vice Minister of Ministry of Finance (MOF), CHEN Xi, Vice
Minister of Ministry of Education (MOE), TAN Tieniu, Assistant Party
Secretary of the Chinese Academy of Sciences (CAS) as well as
several director general-level officials from MOST, NEA and the
Ministry of Housing and Urban and Rural Development (MOHURD). END
SUMMARY.

CLEAN ENERGY COOPERATION
------------------------
2. (U) Madam Liu stated that several cities and provinces across
China are enthusiastic about clean energy development. The Chinese
government is offering great support to enterprises, research
institutes, and universities involved in this development, said Liu.
Secretary Chu said he shared the same view and noted that the U.S.
government is making efforts to assure companies and enterprises of
the importance the government attaches to climate change.

ELECTRIC VEHICLES
------------------
3. (U) Madam Liu praised the success of the U.S.-China Electric
Vehicle Forum held in late September (REFTEL) and asked Chu whether
the U.S. will attach more importance to development of the electric
vehicle or the hybrid vehicle. Chu answered that the United States
is very serious about EV development, especially as the U.S. has
invested a lot of money on battery development and has made
significant progress. Madam Liu acknowledged that focusing on EV
development is a good way to reduce both nations' dependence on oil.

4. (U) Madam Liu also elaborated that Beijing possesses over 3
million vehicles and that the even-odd number traffic control
measure during the Olympics not only helped with the heavy traffic
situation, but reduced greenhouse gas emissions. [NOTE: During the

BEIJING 00003190 002 OF 002

Olympics, Beijing authorities implemented a system based on the
license plate end-number, which ensures a given vehicle will not be
driven at least one day a week to reduce pollution associated with
Beijing's heavy traffic. This system remains in place. END NOTE.]
Minister Wan also mentioned that the government initiated a
favorable policy on low-emission vehicles resulting in sales of
nearly 11 million low-emission vehicles in China last year. Madam
Liu and Secretary Chu agreed that the two nations should enhance
cooperation on EV development, and that the scientists from both
countries can work together.

5. (SBU) U.S. Department of Energy (DOE) Assistant Secretary (A/S)
David Sandalow suggested that DOE outline specific recommendations
for EV cooperation within the next two months. DOE noted that it
already has plans to invite 10 cities from the U.S. to participate
in EV demonstration projects, while China will identify 10 sister
cities to be paired with the U.S. cities. Minister Wan also said
that that both the United States and China already have agreed on
how to implement the sister city projects, noting that the EV
industry will serve as the main implementing body, while the role of
provincial and city governments will also be strengthened.

OTHER AREAS
------------
6. (U) CAS' Tan Tieniu, introduced the agreement that has just been
signed between Tsinghua University and MIT, focusing on cultivating
talents in the energy field. He also expressed his wish to further
enhance student exchange programs between the United States and
China.

HUNTSMAN

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