[Congressional Record Volume 153, Number 84 (Tuesday, May 22, 2007)]
[Senate]
[Pages S6419-S6420]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             ENERGY POLICY

  Ms. CANTWELL. Madam President, I am coming to the floor this morning 
to talk about energy policy. I know the Presiding Officer very much 
understands the importance of energy policy and has represented a State 
in a region of the country that has been a key component to the U.S. 
energy strategy. My own State, Washington State, with our long history, 
with our hydro system, is starting to become a leader in alternative 
energy and certainly in renewable energy.
  But I rise today to talk about the beginning of the U.S.-China 
Strategic Economic Dialogue that is an ongoing bilateral forum between 
the United States and China. I think it will help lay the foundation 
for important, productive, and mutually beneficial ties between our two 
countries.
  I appreciate that Treasury Secretary Paulson and Vice Premier Wu are 
starting that discussion today. I hope energy will be among the issues 
they talk about.
  I am under no illusion that we have big challenges in working with 
China and particularly in embracing a concept I believe is very 
strategic to how the United States operates in a global economy, that 
is ``coopetition''--you look at those with whom you are competing and 
also look for ways in which you can cooperate and have strategic 
benefits by working together. I think that ``coopetition'' is exactly 
the policy we ought to embrace with China as it relates to energy, and 
it is very important we use this Strategic Economic Dialogue to move 
forward on that issue.
  I know they are going to talk about lots of different issues. It is 
not as if Washington State agrees with China on all issues. I know the 
currency issue will be part of the discussion. I know there are 
intellectual property rights and agricultural issues, there are 
restrictions on Washington products, and many things that will be 
discussed as part of a larger economic dialogue. But I think it is 
important to understand the Washington State experience. If you 
juxtapose our experience to that of the United States, and the U.S. 
trade imbalance with China, I venture to say Washington State almost 
has a trade surplus with China. That is, if you look at various aspects 
of our economic numbers, Washington State and China have been good 
trading partners.
  Back last year, China was the largest export market for Washington 
State. We sent $6.8 billion in exports to China. Approximately two-
thirds of Washington State's agricultural exports went to Asia and 17 
percent to China: apples, potatoes, cherries, and a variety of other 
products. And Washington State companies have been aggressive at 
pursuing opportunities in China for a long time. I don't know if it is 
the proximity of our State to China and the fact that we both look to 
the Pacific, I don't know if it is the large Chinese-American 
population that resides in the State, or just the long cultural history 
on which we continue to build. But Washington State companies have been 
aggressively pursuing opportunities in China for years.
  In fact, Boeing signed its first contract with the Chinese Government 
for 10 707 jetliners in 1972, shortly after President Nixon made his 
first visit there. It is amazing that today 60 percent of China's 
commercial aircraft are Boeing planes.
  That relationship has grown over a long period of time, and we have 
benefited. In fact, in 2006 China purchased $7.7 billion dollars' worth 
of Boeing planes. That represents about 112 orders from different 
Chinese airlines.

[[Page S6420]]

Today China is one of the largest opportunities for Boeing. Some have 
estimated the commercial aircraft market could be as large as $280 
billion.
  When we look at these issues, we look at the cooperation and the 
economic opportunity that has existed for our State. Microsoft is 
another example. It first opened an office in Beijing in 1992. It is no 
surprise, when President Hu was visiting the United States, he actually 
came to Everett and Seattle and Redmond and had an opportunity to be 
hosted by Bill Gates. Microsoft is benefiting greatly from the sales of 
computers and legally licensed software in China.
  More recently, Starbucks has launched hundreds of stores in China. 
Who would have thought that a coffee company would go into a tea-
drinking country and have so much success. But China represents roughly 
20 percent of the new international store growth for Starbucks. It has 
become Starbucks' most important foreign market.
  My point in saying this is that I hope, as we have a debate about 
currency--and I think it is important that we have a debate about 
currency--that we also realize that China is a market. It is a market 
for U.S. products. No export sector could be of greater interest, I 
believe, than the opportunity in the energy and environmental areas.
  Today, China accounts for about 40 percent of the increase in world 
oil demand. The number of passenger vehicles on China's roads has 
tripled since 2001 and may equal the United States by 2030. The Chinese 
face this mass internal transformation from growth and modernization. 
We have the opportunity to help them with that transition. They are 
trying to keep pace. In fact, China is adding one huge 1,000-megawatt, 
coal-fired plant to its grid each week. That is like adding enough 
capacity every year to serve the entire country of Spain. But even with 
this new capacity, their country is without predictable electricity.
  In 2004, China had power shortages in 24 of its 31 provinces and 
autonomous regions, so they are dealing with a challenge to deliver 
energy to various parts of their country.
  What is the opportunity? The International Energy Agency estimated 
that China will spend $2.3 trillion over the next 25 years just to meet 
its growing energy demands, and that modernizing its electricity grid 
will require about $35 billion annually for the foreseeable future. 
That is where American technology can come in; that is where we can 
seek new opportunities for U.S. companies. In fact, the same 
International Energy Agency has talked about the fact that, if we 
institute demand-side management programs where we can leverage 
modernizing the electricity grid, we can show that investments of $700 
billion in the demand side could avoid almost $1.5 trillion in 
additional generation, transmission, and distribution costs in China 
between now and 2030.
  That is an interesting number. By the United States partnering with 
China, we would have an opportunity to help them save on their energy 
costs. What does that mean for us as far as the great opportunity? It 
means increasing exports of U.S. goods and services. It means U.S. 
opportunities to grow in the areas that I have mentioned. Good 
opportunities already exist in aerospace and software and coffee but 
they also can emerge in the energy and environmental sectors.
  It is interesting to think that China realizes that they have a 
challenge and that they are trying to diversify into an array of more 
clean energy sources, including wind, solar, biofuels, and clean coal. 
They are trying to increase productivity and cost savings associated 
with modernizing the electricity grid.
  I happened to visit Beijing last November with a group of Washington 
State business leaders that were there to promote long-term 
opportunities for us to work together. It was then that I realized how 
much the Chinese Government had embraced and was committed to its goal 
of cutting energy consumption per unit of GDP by 20 percent by 2010. 
For that very short period of time they have tremendous energy goals 
that we, the United States, can help them meet.
  Modernizing the domestic energy infrastructure will require an 
estimated $35 billion a year. Again, that is an opportunity for the 
United States, exporting existing U.S. products and services, that 
could help us turn around the trade imbalance.
  In a speech last month, Premier Wen acknowledged that China must 
focus on energy conservation and emission reduction in order to both 
develop the economy and protect the environment. I think this is an 
opportunity that is before us now as we are part of the Strategic 
Economic Dialogue with China. Increased U.S.-China cooperation on 
energy and environment would have tremendous economic, environmental, 
and security benefits for both our nations. It would help make U.S. 
companies better positioned for economic opportunities both inside and 
outside China as we develop standards associated with our energy 
policy.
  I recently sent a bipartisan letter to the President asking for a 
comprehensive U.S.-China energy policy and bilateral energy summit. I 
am proud to say that the bipartisan letter, signed by several of my 
colleagues on the other side of the aisle--Senator Smith, Senator 
Murkowski, Senator Voinovich--also was signed by the four chairs of 
important committees--the Energy Committee, Finance Committee, Foreign 
Relations, and Homeland Security Committee--because I believe that they 
agree that this is an important opportunity for the U.S. and China to 
work together. In fact, we said, in sending the letter to the 
President:

       The way we approach global energy issues will affect the 
     international economy and the world's environment for decades 
     to come. A bilateral U.S.-China energy policy and a summit 
     between our nations to focus on ways to cooperate on energy 
     issues would have tremendous economic benefits for both our 
     nations.

  I hope as the Strategic Economic Dialogue goes forward this week that 
a great deal of focus will be placed on energy. When one of my 
predecessors, Warren Magnuson, went to China, he said, ``pretending 700 
million people in the world do not exist is the wrong approach.'' Today 
it is 1.3 billion people. It is time to understand China's internal 
transformation, our own global energy needs, and our nations' evolving 
relationship. It is time to see the great promise in our common 
interests and time to work together on shared challenges and 
opportunities involving energy and the environment.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. Who seeks time? The Senator from 
Rhode Island is recognized.
  Mr. WHITEHOUSE. Madam President, I would like to speak for 15 
minutes.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  (The remarks of Mr. Whitehouse pertaining to the introduction of S. 
1451 are printed in today's Record under ``Statements on Introduced 
Bills and Joint Resolutions.'')
  Mr. WHITEHOUSE. I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from Pennsylvania.

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