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RR RUEHCN RUEHGH
DE RUEHGH #0241/01 1490630
ZNR UUUUU ZZH
R 290630Z MAY 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 7985
INFO RUEHBJ/AMEMBASSY BEIJING 2824
RUEHCN/AMCONSUL CHENGDU 2012
RUEHGZ/AMCONSUL GUANGZHOU 0469
RUEHSH/AMCONSUL SHENYANG 2003
RUEHHK/AMCONSUL HONG KONG 2180
RUEHIN/AIT TAIPEI 1799
RUEAEPA/HQ EPA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 8632

UNCLAS SECTION 01 OF 09 SHANGHAI 000241 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO CEQ SUTLEY 
USDOC FOR MAC AND MAS 
USDOC ALSO PASS USPTO FOR WU 
USDOE FOR INTERNATIONAL 
EPA FOR INTERNATIONAL-KASMAN/GIANNINI-SPOHN 
NSC FOR LOI, SHRIER 
STATE FOR EAP/CM-HABJAN, EAP/PD-STOLTZ, GALT, AND EMMONS 
STATE ALSO FOR OES DAS MIOTKE, OES/EGC, OES/ENV, AND OES/PCI 
STATE ALSO FOR S/SECC-STERN, S/P-GREEN, EEB, AND ECA 
 
E.O. 12958: N/A 
TAGS: ENRG SENV KIPR KGHG TRGY OVIP PELOSI NANCY CH
SUBJECT: CODEL PELOSI DISCUSSES ENERGY CONSERVATION AND EMISSIONS 
REDUCTION WITH SHANGHAI ENTREPRENEURS 
 
REF: A) SHANGHAI 229, B) SHANGHAI 231, C) SHANGHAI 232, D) SHANGHAI 233 
 
¶1.  (SBU) SUMMARY: In a May 25 roundtable discussion on energy 
conservation and emissions reduction with Shanghai 
entrepreneurs, Speaker Nancy Pelosi and Representatives Markey, 
Sensenbrenner, Blumenauer, and Speier underscored the importance 
of U.S.-China cooperation on energy issues, especially in aiding 
the global effort to reach a comprehensive agreement on 
greenhouse gas emissions reduction.  They highlighted the role 
of technology in addressing energy concerns and emphasized that 
intellectual property rights (IPR) protection is paramount in 
spurring innovation.  Each of the entrepreneurs gave a snapshot 
of energy conservation efforts in their sectors, which included 
autos, power generation, steel, construction, chemicals, 
alternative energy, air conditioning, and energy consulting. 
The entrepreneurs noted great strides that Chinese industries 
have made in reducing energy consumption across sectors, and how 
China is outpacing the United States and others in certain 
areas.  Energy-saving technology innovation was a recurring 
theme, and all agreed that more government investment, 
cooperation in research and development, IPR protection, and 
sharing of best practices is needed.  Participants also called 
for more leadership from government and industry leaders in 
developing and implementing energy reduction targets, green 
building standards, and improving energy conservation 
capabilities across various industries. 
 
¶2.  (SBU) SUMMARY CONTINUED: In discussing pursuit of a global 
agreement to address climate change, participants noted the wide 
variety and great extremes in development of both regions within 
China and countries of the world.  While everyone has a 
responsibility to reduce greenhouse gas emissions, several 
entrepreneurs believed a differentiated approach/treatment 
according to one's ability would be needed to make any agreement 
plausible.  Participants believed that countries should build 
upon previous agreements and learn from any mistakes therein to 
move forward on climate change.  Speaker Pelosi stressed that we 
are all in this together, no matter what our stage of 
development.  While much has been said about blame for the 
global climate crisis, Pelosi emphasized joint responsibility 
for tackling the problem, noting that countries such as China 
have unique opportunities to address the climate issue.  She 
cautioned that a differentiated approach must not be used as an 
excuse to shirk responsibility.  Representatives Markey and 
Sensenbrenner noted that all stakeholders need to do more on 
energy and climate change and that the only way to make 
meaningful progress on this issue would be for countries to 
agree to a transparent, binding, and verifiable agreement, 
something that China and others have been unwilling to do to 
date.  END SUMMARY. 
 
¶3.  (U) On May 25, Speaker Nancy Pelosi, four other Members of 
Congress, and Consulate staff discussed energy conservation and 
emissions reduction with a multi-sector group of Shanghai 
business leaders.  Shanghai Municipal People's Congress (MPC) 
and National People's Congress (NPC) representatives also 
attended (see paragraphs 26 and 27 for a list of the U.S. and 
Chinese roundtable participants). 
 
MUCH DONE, BUT MORE TO DO ON CLIMATE AGREEMENT, TECHNOLOGY, AND 
CAPACITY BUILDING 
--------------------------------------------- -------------- 
---------------------- 
 
¶4.  (SBU) Roundtable host HU Wei, Vice Chairman of the Shanghai 
MPC Standing Committee, opened the discussion by noting that 
Speaker Pelosi and members of the Congressional delegation are 
quite knowledgeable on and have done much work in the areas of 
energy conservation and climate change.  Speaker Pelosi thanked 
China for its efforts, and noted that Shanghai, one of the 
country's most developed cities, is a leader in this area.  She 
underscored that the topics to be discussed during the 
 
SHANGHAI 00000241  002 OF 009 
 
 
roundtable are of importance to the United States, which is 
eager and determined to work with China to decrease dependence 
on coal, improve energy usage and save the planet. 
Representative Edward Markey (D-MA) indicated that Congress was 
in the process of passing greenhouse gas reduction legislation. 
At the upcoming climate change conference in Copenhagen this 
December, Markey indicated that the United Sates will work with 
countries to put together a plan to reduce global greenhouse gas 
emissions -- a global agreement, sector by sector, that is 
transparent, enforceable, and verifiable.  He asked the 
entrepreneurs if such an agreement is achievable. 
Representative James Sensenbrenner (R-WI) highlighted the role 
of technology in reducing greenhouse gases, saying that such 
technology is not well developed at this time and that a 
worldwide effort is needed to spur innovation.  He cautioned 
that innovative technology development would not be possible 
without proper intellectual property rights (IPR) protection, 
and he asked the entrepreneurs for their take on the Chinese 
Government's and the Chinese private sector's efforts to protect 
both domestic and international IPR.  Representative Earl 
Blumenauer (D-OR) said that he was struck by the wide variety 
and great extremes of China's regions -- some are rich, some 
poor, some developed, some underdeveloped, but all possess 
energy and vitality.  He asked how China could ensure that these 
regions, with varying levels of capacity, could keep pace with 
the compliance requirements of a global climate change 
agreement.  Representative Jackie Speier (D-CA) noted that the 
United States and China combined account for about 40 percent of 
the world's greenhouse gas emissions.  Therefore both countries 
need to look at ways to move forward on greenhouse gas reduction 
and the development of green technologies.  She asked the group 
how both sides could cooperate in the area of technology to 
green both nations.  Following these opening remarks, Hu Wei 
turned to the entrepreneurs to each give a brief introduction 
and respond to the remarks from the CODEL. 
 
SHANGHAI GENERAL MOTORS: ON THE ROAD TO SUSTAINABLE DEVELOPMENT 
--------------------------------------------- ------------------ 
 
¶5.  (SBU) DING Lei, General Manager of Shanghai General Motors, 
explained that the company is a joint venture between Shanghai 
Automotive Industry Corporation (SAIC) and General Motors. 
Established in 1997 and beginning auto production in 1999, 
Shanghai GM has produced more than 600,000 autos this year. 
With a low ratio of motor vehicles to population compared to the 
United States, China needs to develop convenient transportation 
to control emissions and reduce waste.  In order to keep auto 
companies on the path of sustainable development, there needs to 
be a synergy between government, industry, and the people. 
Shanghai GM has endeavored to make breakthroughs in promoting 
green manufacturing in its auto plants.  From just 2003 to 2005, 
the company reduced its per manufactured automobile energy 
consumption by 0.3 tons of coal equivalent (TCE) annually.  To 
protect the environment, Shanghai GM has put in place several 
energy conservation policies and has encouraged suppliers to 
become greener (NOTE: Shanghai GM has been working on a Greening 
the Supply Chain program with Washington based NGO the World 
Environment Center.  END NOTE.).  To this end, the company is: 
1) researching ways to increase the efficiency of the 
traditional internal combustion engine by decreasing energy 
consumption by five percent; 2) developing hybrid power vehicles 
capable of saving 15 percent of energy (and perhaps 40 percent 
by the end of 2009); 3) along with U.S. partners, developing 
electric vehicles to be released on the China market in 2010 or 
2011; and 4) promoting the research and development of fuel cell 
vehicles.  Ding stressed that China's energy consumption mix is 
different from most developed countries, but the government and 
industry have been working on strategies to develop small 
displacement vehicles and improve the energy consumption mix. 
He said he is confident that China will continue to make better, 
more efficient products. 
 
SHANGHAI 00000241  003 OF 009 
 
 
 
SHANGHAI POWER: TECHNOLOGY KEY TO DIVERSIFYING ENERGY RESOUCES 
--------------------------------------------- ----------------- 
 
¶6.  (SBU) Shanghai Power Co. Ltd., the largest power company in 
the city, accounts for one third of Shanghai's total coal 
consumption, using approximately 15 million tons of coal 
annually for power generation.  Shanghai Power Chairman ZHOU 
Shiping said that with the guidance and support of the 
government, the company has been trying to eliminate inefficient 
power plants (capacity of fewer than 125 megawatts) and replace 
them with newer, more efficient technology (capable of 
generating 1700 megawatts).  Shanghai's development is 
fast-paced, with five inefficient plants scheduled to be shut 
down in the near future.  The energy efficiency of Shanghai's 
plants has increased from 30 to 45 percent in recent years. 
Highlighting the May 11, 2009 New York Times article on China 
outpacing the United Sates on cleaner coal fired power plants, 
Zhou noted that the energy efficiency of many of China's plants 
is higher than those in the United States.  For example, many 
plants in the United States use 30-40 year old equipment. 
Additionally, China uses higher pressure and temperatures, which 
are more efficient.  To reduce its reliance on coal, China has 
doubled its total wind energy capacity in each of the past four 
years and is in the process of constructing 14 wind power 
generation sites each with a capacity of 100 megawatts.  Four of 
these sites will be located in Shanghai. 
 
¶7.  (SBU) Zhou said that all countries have a common 
responsibility to reduce greenhouse gases, but stressed that 
with so many developed and under developed regions, China would 
need to come up with differentiated treatment to maintain a 
balance among all regions in meeting reduction targets.  He 
believed countries could reach a comprehensive agreement on 
climate change if they take a step-by-step approach.  On 
technology, Zhou said that China is increasingly employing more 
cost-effective and efficient technologies and that the United 
Sates and China have many ideas and much expertise in these 
areas.  The two countries should cooperate more on technology 
research and development as a means to reduce emissions and 
lower energy intensity of power generation facilities. 
 
BAO STEEL: INDUSTRY RESTRUCTURING AND INTERNATIONAL COOPERATION 
--------------------------------------------- ------------------ 
 
¶8.  (SBIU) Bao Steel is the largest steel producer in China, 
accounting for around six percent of China's total steel 
production.  Its products are used primarily in the domestic 
market, with some exports.  The company has collaborated with 
firms such as General Electric to develop environmental 
protection measures and technologies.  Since 2003, the company 
has promoted energy efficiency and has participated in several 
international fora, such as the Asia Pacific Partnership. 
 
¶9.  (SBU) LI Haiping, Deputy Director of Bao Steel's Development 
and Planning Committee, said that in 2005, the Central 
Government mandated a restructuring of the steel and cements 
industries and set emission reduction targets.  He noted that 
China's steel industry is in a different stage of development 
compared to the United States.  As an example, U.S. steel 
producers widely employ "mini mills" to reprocess used steel 
scrap while Chinese firms rely primarily on raw materials and 
mines for inputs for steel production.  With this gap between 
"the east and the west," Li noted that much "basic work" needs 
to be done to assess the areas to best target for efficiency 
improvements in China's steel industry.  Technology is a big 
component of industry restructuring, and Li hopes that China, 
the United Sates, and Europe could work together on technology 
development and sharing intellectual property.  He hoped that 
governments could allocate funding for such joint projects. 
 
 
SHANGHAI 00000241  004 OF 009 
 
 
WORLD EXPO 2010: ENVIRONMENTAL FOUCUS AND GREEN BUILDINGS 
--------------------------------------------- ------------ 
 
¶10.  (SBU) From May to October 2010, Shanghai will host the 2010 
World Expo, expected to be the largest in history attracting as 
many as 70 million visitors.  The Expo will have an 
environmental focus, and energy efficiency and green technology 
will feature prominently.  DAI Liu, Chairman of Shanghai Expo 
(Group) Co. Ltd., said that organizers have investigated how to 
make the five permanent Expo structures more environmentally 
friendly since 20 percent of energy consumption comes from 
buildings.  To create more environmentally friendly buildings, 
organizers have employed China's national green buildings 
standards as well as the U.S. Leadership in Energy and 
Environmental Design (LEED) standards to improve building design 
and function, the first such use of both standards 
simultaneously.  Using cutting-edge building technology along 
with traditional technology has been paramount in meeting green 
building standards as both have their place in building planning 
and construction.  Dai outlined some of the innovations in air 
conditioning such as the use of wooden walls, and use of the 
Huangpu River that bisects the Expo site to control indoor 
temperatures, as well as use of solar technology and LED 
lighting to supply building heating, lighting and electricity. 
Expo organizers hope to win the Ministry of Construction's 
coveted "Golden Award" and invite other organizations to 
evaluate their green building efforts. 
 
SHANGHAI INSTITUTE OF ARCHITECTURAL DESIGN AND RESEARCH: 
INCREASED DEMAND FOR GREEN BUILDING AND CONSTRUCTION 
--------------------------------------------- -------------- 
------------------------------------- 
 
¶11.  (SBU) ZHANG Yanping, President of Shanghai Institute of 
Architectural Design and Research echoed Dai's comments about 
the importance of green buildings.  The Shanghai Institute of 
Architectural Design and Research (SIADR) has helped formulate 
national green building standards and has promoted the spread of 
advanced building technology such as the recycling and reuse of 
solid waste.  The institute has also advised the government on 
energy conservation guidelines and policies.  Each year SIADR 
undertakes 30-40 research projects mainly financed with 
government funds.  The institute provides consulting services to 
entities such as the Shanghai Expo Bureau and convenes 
conferences and seminars to increase awareness of green building 
trends.  There is increased demand in China for green building 
practices as well as market development for green services and 
technologies.  While China has started late with regard to green 
building principles, it has made considerable positive progress, 
especially in the areas of building/construction energy 
conservation and emission reduction.  Together with partners 
such as the World Wildlife Fund and the Global Environment 
Facility, SIADR is keeping in step with international trends. 
 
SHANGHAI BUILDING MATERIALS CORPORATION: GOVERNMENT LEADERSHIP 
IS KEY 
--------------------------------------------- -------------- 
---------- 
 
¶12.  (SBU) SHI Derong, Chairman of the Shanghai Building 
Materials Group Corporation (SBMGC), stressed that energy 
conservation and emission reduction is paramount to solving 
global climate change, especially for costal cities threatened 
by rises in sea level, such as Shanghai.  SMBGC has worked on 
the development of multi-crystal silicon solar panel technology 
as well as energy saving glass to help increase energy 
efficiency.  Work still needs to be done to improve energy usage 
in the energy-intensive cement industry, a key component of the 
building/construction sector. 
 
¶13.  (SBU) Shi believed that leadership from the government is 
 
SHANGHAI 00000241  005 OF 009 
 
 
key in achieving sustainable green building practices, including 
establishment of clear targets, standards, and incentives. 
Although there are vast differences between the United States 
and China, both countries are moving in the right direction on 
fostering energy conservation and emission reduction policies. 
He, too, believed that IPR enforcement is key to China's 
progress in this area, especially since other countries, such as 
the United Sates, have some of the most advanced technologies. 
SMBGC and others are currently researching whether U.S. and U.K. 
technologies such as photothermal energy can be used in China to 
heat water on the roofs of buildings to make it easier to 
generate steam for electricity generation.  China has its own 
intellectual property and therefore earnest enforcement of IPR 
is a win-win for both domestic and foreign firms. 
 
SHANGHAI WUJING CHEMICAL: BALANCE AMONG THE INDUSTRY NEEDED 
--------------------------------------------- -------------- 
 
¶14.  (SBU) HU Yongkang, Chairman of Shanghai Wujing Chemical 
Corporation, noted that the chemical industry is different from 
other sectors in terms of energy consumption.  Chemical 
production can be very energy-intensive and the chemical 
industry is continually monitored by the government and urged to 
lower its energy consumption.  Wujing Chemical has made great 
strides in reducing energy consumption, decreasing it by ten 
percent annually in recent years.  New technologies such as 
those used to recycle or reclaim waste or gases are also crucial 
to remaining competitive, maximizing cost savings, improving 
energy efficiency and decreasing emissions.  There is an 
imbalance within China's chemical industry with a wide disparity 
in technology and techniques among companies.  Outdated plants 
have been closed, which helps environmental protection, but at 
the same time displaces workers.  Hu believed that proper 
management from both the government and the industry is needed 
to keep the chemical industry on the green path and that China's 
energy management contract system has helped in this regard. 
Companies have received funding for technology from the 
government and in turn have provided feedback on best practices. 
 
SHANGHAI GOLTE (GAOYI) ENERGY: MUST MAXIMIZE ENERGY EFFICIENCY 
--------------------------------------------- ----------------- 
 
¶15.  (SBU) Shanghai Gaoyi Energy Co. Ltd., an energy performance 
contracting company, provides professional conservation services 
such as efficiency diagnosis as well as technology integration, 
application, and investment.  CAI Jin, General Manager of 
Shanghai Gaoyi Energy, said that China's rapid development, 
including construction, transportation, and industrialization 
and its export-oriented economy, has created a high demand for 
energy.  Maximizing energy efficiency is crucial for further 
economic development and Gaoyi has worked on over 1000 projects 
with partners such as the World Bank, the Global Environment 
Facility, and others to develop best practices in energy 
conservation. 
 
SHANGHAI AIR-SYS: SMALL ENETERPRISES HAVE A ROLE, GOVERNMENT 
NEEDS TO SUPPORT 
--------------------------------------------- -------------- 
------------------ 
 
¶16.  (SBU) DONG Chenwei, Deputy General Manager of Shanghai 
Air-Sys Air Conditioner Systems, explained that Shanghai Air-Sys 
is a small company and urged governments to factor in how small 
and medium sized enterprises can help mitigate climate change. 
Shanghai Air-Sys began environmentally-friendly conversions of 
air conditioner systems in 2000 and introduced several new air 
conditioner models in 2005.  In 2008, new, more efficient models 
saved 3000 TCE, creating RMB 33 million (USD 4.8 million) in 
total sales.  The company has also worked with the semiconductor 
industry to improve that industry's efficiency and technology. 
While the company has raised its own funds for green endeavors, 
 
SHANGHAI 00000241  006 OF 009 
 
 
Dong said that government support through an innovation fund 
also has been very helpful. 
 
SHANGHAI DONGHAI WIND POWER: COOPERATION ON NEW TECHNOLOGY 
--------------------------------------------- ------------- 
 
¶17.  (SBU) Shanghai Donghai's wind power project is the first 
large-scale offshore wind farm under construction in China.  The 
wind farm will be comprised of 34 wind turbine generators with a 
combined maximum stand-alone capacity reaching 100 megawatts. 
The designed annual equipment utilization time is 2600 hours and 
the wind farm will provide 267 million kilowatt hours per year 
to the power grid.  The project is to be completed no later than 
the May 1, 2010 start of the 2010 World Expo.  ZHU Kaiqing, 
General Manager of Shanghai Donghai Windmill, said the project 
will save 80 thousand TCE, 40 thousand tons of CO2 and greatly 
reduce SO2 emissions.  He also underscored the need for 
cooperation on technology, and cited two projects with U.S. 
firms as good foundations for cooperation.  The United States is 
a leader in energy technologies and Zhu is optimistic that both 
countries can cooperate in this regard to decrease the cost of 
energy-saving technology and spread its use worldwide. 
 
SHANGHAI ENERGY CONSERVATION ASSOCIATION: A DIFFERENTIATED 
APPROACH ACCORDING TO ABILITY IS NEEDED TO REDUCE EMISSIONS 
--------------------------------------------- -------------- 
------------------------------------------ 
 
¶18.  (SBU) Shanghai Energy Conservation Association is a 
comprehensive non-profit organization with members from 
energy-consuming enterprises, manufacturers of energy-intensive 
products, and other organizations specializing in energy 
management, research, design, education, and information 
sharing.  According to SHI Mingrong, Director-General of 
Shanghai Energy Conservation Association, its mission is to 
mobilize all its members to conserve energy and improve 
efficiency in compliance with relevant laws and policies.  The 
Association provides consulting services to its 640 members and 
has advised some foreign (including U.S.) firms. 
 
¶19.  (SBU) Shi stressed that now is the best environment ever 
for energy conservation and emission reduction due to government 
incentives and directives and more enthusiasm from enterprises. 
Still, Shi emphasized that all involved need to do more.  With 
regards to previous agreements to reduce greenhouse gasses, Shi 
said that they are like children:  even if they are not the 
healthiest, you cannot just abandon them and get new ones; 
therefore countries must come together and build on the existing 
frameworks.  He noted that the protection of IPR ensures 
continued innovation.  But holders of IPR for technology that 
can save the earth should proceed from a larger, moral interest, 
not from profit margins.  As when climbing a mountain, the more 
able should help out the less able to reach the top.  Greenhouse 
gases have existed for a long time, and Shi said there is a 
question as to who should bear the responsibility for these 
emissions.  China's share of the world's greenhouse gases is 
limited, but the country still has a responsibility to reduce 
greenhouse gas emissions for future generations.  Not every 
citizen should shoulder the same burden and that there should be 
a differentiated approach with all moving in the same direction, 
according to their capability. 
 
THE SPEAKER RESPONDS: WE'RE ALL IN THIS TOGETHER, AND WE CANNOT 
SHIRK RESPONSIBILITY 
--------------------------------------------- -------------- 
------------------------- 
 
¶20.  (SBU) Speaker Pelosi thanked the participants for their 
candid views and found hope and encouragement in their efforts 
and ideas.  In reaching a climate agreement, Pelosi stressed, we 
are all in this together, no matter what stage of development. 
 
SHANGHAI 00000241  007 OF 009 
 
 
"We are all children in this family," she said, "and our mother 
-- mother earth -- is sick."  All need to work to clean the air 
for future generations and protect the environment, including 
recognizing the scarcity of water resources as it is needed for 
drinking, farming, as well as industry.  For the United States, 
Pelosi said market solutions need to be employed since the 
United States does not have subsidy programs similar to China. 
IPR protection is a paramount need, especially in fostering 
research and development, and Pelosi was encouraged by China's 
innovative ideas. 
 
¶21.  (SBU) Speaker Pelosi noted that much has been said about 
blame for the global climate crisis.  Some in the United States 
wish that we were in an earlier stage of our own economic 
development and could have the opportunity to address climate 
issues early, as China now can.  Countries need to come to an 
agreement on how to reduce greenhouse gases, but Pelosi 
cautioned that a differentiated approach must not be used as an 
excuse to shirk responsibility.  She also said that any climate 
agreement must consider and bring along all people, both rich 
and poor. 
 
¶22.  (SBU) The Speaker said that her delegation now has a better 
understanding of the many challenges faced by China, and at the 
same time China has an opportunity to take the lead in areas 
such as cleaner coal power generation facilities (as noted in 
the May 11 New York Times article).  Pelosi underscored that the 
delegation had come to China to discuss these difficult issues 
with respect, openness, and candor, but at the end of the day, 
our mother (mother earth) is dying.  While transiting Alaska en 
route to Shanghai, the delegation learned of the melting of the 
polar region and its effect on polar communities.  She stressed 
that all must take part in preserving the Arctic ice cap that is 
now in serious jeopardy.  Even countries (such as China) that 
are not close to the Arctic Circle all have a responsibility to 
preserve the ice cap, said Pelosi.  China is rich with ideas and 
has much it can contribute to Arctic preservation efforts. 
 
MARKEY AND SENSENBRENNER: A BINDING, VERIFYABLE AGREEMENT IS KEY 
TO ADDRESSING CLIMATE CHANGE 
--------------------------------------------- -------------- 
---------------------------------- 
 
¶23.  (SBU) Representative Markey added that the U.S. side was 
impressed with the talent and seriousness of the entrepreneurs 
and is encouraged by the work that all the different sectors are 
undertaking to reduce greenhouse gas emissions.  He echoed the 
sentiments of Shi Mingrong of the Shanghai Energy Conservation 
Association that everyone needs to do more.  Markey agreed that 
countries need to build on the previous protocols (Kyoto and 
Bali).  While mistakes have been made with the previous 
protocols and their implementation, lessons have also been 
learned which have been used as a means to move forward.  Markey 
stressed that countries must come together and do all they can 
in their own ways under a binding climate agreement. 
 
¶24.  (SBU) Referencing Senator Kerry's speech at the Bali 
conference, Representative Sensenbrenner reinforced that the 
United States will not ratify an agreement that is not 
transparent, binding, and verifiable, something that China has 
been reluctant to support.  He cautioned that if China does not 
take the sentiment of the Kerry speech to heart and refuses to 
make binding commitments, countries will be talking for the next 
ten years on how to resolve the climate change dilemma. 
 
¶25.  (SBU) Hu Wei closed the discussion, saying such 
face-to-face discussions are crucial in enhancing mutual 
understanding.  The United States and China come from different 
backgrounds, but share the same dream in protecting the global 
environment.  Both sides must work together to foster 
cooperation and understanding and to promote the development and 
 
SHANGHAI 00000241  008 OF 009 
 
 
use of new technology for sustainable development and energy 
conservation. 
 
¶26.  (U) U.S. PARTICIPANTS 
 
Speaker Nancy Pelosi and Mr. Paul Pelosi 
 
Rep. Edward Markey 
 
Rep. James Sensenbrenner 
 
Rep. Earl Blumenauer and son Jon Blumenauer 
 
Rep. Jackie Speier 
 
Acting U.S. Consul General in Shanghai Simon Schuchat 
 
Professional Staff Members to the Speaker and Representatives 
 
David Gossack, Consulate Commercial Section Chief 
 
Jake Jacanin, Consulate Environment, Science, Technology and 
Health Officer (Notetaker) 
 
Gregory Harris, Consulate Commercial Officer 
 
¶27.  (U) CHINESE PARTICIPANTS 
 
-- ENTREPRENEURS: 
 
LI Haiping, Deputy Director of the Development and Planning 
Committee, Bao Steel 
 
DAI Liu, Chairman of Shanghai Expo (Group) Co. Ltd. 
 
DING Lei, General Manager of Shanghai General Motors 
 
SHI Mingrong, Director-General of Shanghai Energy Conservation 
Association 
 
HU Yongkang, Chairman of Shanghai Wujing Chemical Corporation 
 
ZHU Kaiqing, General Manager of Shanghai Donghai Windmill 
 
ZHOU Shiping, Chairman of Shanghai Power Co. Ltd. 
 
ZHANG Yanping, President of Shanghai Institute of Architectural 
Design and Research 
 
SHI Derong, Chairman of Shanghai Building Materials Group 
Corporation 
 
CAI Jin, General Manager of Shanghai Gaoyi Energy Co. Ltd. 
 
DONG Chenwei, Deputy General Manager of Shanghai Air-Sys Air 
Conditioner Systems 
 
-- SHANGHAI MUNICIPAL PEOPLE'S CONGRESS (MPC): 
 
HU Wei, Vice Chairman of Shanghai MPC Standing Committee 
 
GAN Zhongze, Member of Shanghai MPC Standing Committee and 
Chairman of Shanghai NPC Urban Construction and Environment 
 
LIU Shicai, Member of Shanghai MPC Finance and Economy Committee 
 
XU Yi, Deputy Director of the General Office of Shanghai MPC 
Standing Committee 
 
ZHOU Ya, Economist General of Shanghai Development and Reform 
Commission 
 
SHANGHAI 00000241  009 OF 009 
 
 
 
-- NATIONAL PEOPLE'S CONGRESS (NPC): 
 
LI Zhaoxing, Chairman of NPC Foreign Affairs Committee, former 
Chinese Ambassador to the United States and former Minister of 
Foreign Affairs 
 
ZHOU Wenzhong, Chinese Ambassador to the United States 
 
CHEN Guomin, Minister-Counselor of the Chinese Embassy to the 
United States 
 
ZHAO Yong, Deputy Director-General of Foreign Affairs Bureau of 
the General Office of NPC Standing Committee 
 
WANG Yixing, Deputy Director of Foreign Affairs Bureau of the 
General Office of NPC Standing Committee 
 
ZUO Liang, Staff of Foreign Affairs Bureau of the General Office 
of NPC Standing Committee 
 
PENG Fang, Director, General Office of NPC Foreign Affairs 
Committee 
 
HE Shaoren, Deputy Director-General of the Information Bureau of 
the General Office of NPC Standing Committee 
 
XU Dong, Deputy Director, General Office of NPC Foreign Affairs 
Committee 
 
QI Lujiang, Section Chief of the General Office of NPC Foreign 
Affairs Committee 
 
LIU Bing, Cadre of the General Office of NPC Foreign Affairs 
Committee 
 
CHENG Lei, Counselor and Director of the Department of North 
American and Oceanian Affairs, Ministry of Foreign Affairs 
 
ZHANG Yongchao, Third Secretary of the Department of North 
American and Oceanian Affairs, Ministry of Foreign Affairs 
 
CHEN Ya'ou, First Secretary of the Department of North American 
and Oceanian Affairs, Ministry of Foreign Affairs 
 
ZHANG Yu, Interpreter, Interpretation Office of the Ministry of 
Foreign Affairs 
 
SUN Juan, Interpreter, Interpretation Office of the Ministry of 
Foreign Affairs 
 
WANG Wenjie, Section Chief of the Disease Prevention and Control 
Bureau, Ministry of Health 
 
LIU Xiaoliang, Cadre of the Disease Prevention and Control 
Bureau, Ministry of Health 
 
¶28.  (U) Speaker Pelosi's staff has cleared this meeting report. 
SCHUCHAT