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China Daily Covered CEF Meeting on Chinese Direct Investment in the US Energy Sector

Chinese foreign direct investment in the United States accelerated only a few years ago, but Chinese companies are now building a variety of solar and wind farms, electric-vehicle manufacturing plants and other greenfield energy projects across America. However, Chinese direct investment in the US clean-energy sector is greatly influenced by local policies, policy experts said in a CEF meeting on July 30.

China Daily Covered CEF Meeting on Chinese Direct Investment in the US Energy Sector

Chinese foreign direct investment in the United States accelerated only a few years ago, but Chinese companies are now building a variety of solar and wind farms, electric-vehicle manufacturing plants and other greenfield energy projects across America. However, Chinese direct investment in the US clean-energy sector is greatly influenced by local policies, policy experts said in a CEF meeting on July 30.

Melanie Hart, director for China policy at the Center for American Progress, recently published a new report that looked at more than 60 major projects and found that clean-energy investments follow state policies to a great extent. Many US clean-energy investments in the past have been deterred by the long payoff periods associated with new technology, Hart said. However, "China has focused on clean energy from the top down much more strongly and earlier than the US has, so a lot of Chinese investors saw clean-energy investments as a great strategic opportunity.

"I think we all agree that Chinese direct investment is generally a positive thing," said Damien Ma, a fellow at the Paulson Institute and former lead China analyst at Eurasia Group. "Given all the other nasty things that (have) been happening in the bilateral relationship, this can serve as a 'new anchor' in our relationship."

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(Photo credit: China Environment Forum, Wilson Center)

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