OPINION> Commentary
Joint energy efforts
(China Daily)
Updated: 2008-06-18 07:36

As two of the largest energy producers and consumers, China and the United States have a huge stake in meeting the challenge of rising energy costs through long-term and extensive cooperation.

By focusing on joint efforts to address energy efficiency and pollution reduction, the two countries are making their bilateral semi-annual talks live up to its name, "Strategic Economic Dialogue" (SED).

With oil hitting a record near- $140 a barrel on Monday, the strategic importance of cooperation on energy issues becomes more evident than ever.

International oil prices have doubled in the last year and risen 40 percent since the start of this year, propelled by expectations that supply will struggle to meet demand from emerging economies.

Soaring oil prices have made it increasingly difficult for China to introduce a market-driven energy pricing mechanism as the country's inflation has now climbed to a decade-high level.

Meanwhile, record gasoline prices also hit hard the US economy which is already caught between a slumping housing market and a subprime crisis.

There is no quick solution to the challenge of rising energy costs. To address it, we must make more joint efforts on fundamental issues like increasing energy efficiency and developing new energy sources.

As the world's largest developing country, China is still at a stage of accelerated industrialization and urbanization. The growing demand for energy and resources has forced the country to intensify energy and resource conservation as much as possible.

China has planned to cut its energy intensity by 20 percent between 2006 and 2010. But the country has so far fallen behind its own schedule due to a lack of effective means to raise energy efficiency.

The US is the world's biggest developed country with advanced technologies and a rich experience in enhancing energy efficiency.

Clearly, stronger cooperation between the two countries in matters relating to energy and environment will enable China to respond better to these issues. It will also offer tremendous business opportunities and handsome returns for American investors.

The ongoing fourth China-US SED provides both sides an opportunity to promote their long-term cooperation on energy issues. We hope the dialogue will bear fruits that benefit not only the two countries but also the world.

(China Daily 06/18/2008 page8)