[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]


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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.

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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.

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    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

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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

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representative (large firm or SME) is $3,300.
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    \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).
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    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