The report, which was requested by House Resources Committee Chairman
Richard W. Pombo (R-CA) in the Energy Policy Act of 2005, was prepared
with the Central Intelligence Agency and the Departments of Defense,
Treasury, State and Homeland Security.
"Without question, this study shows that China is serious about energy,"
Pombo said. "The Chinese have figured out that abundant and affordable
supplies of energy -- in all its forms -- are the key to strong economic
growth. So they are implementing a goliath of a comprehensive energy
policy while we take baby steps. Their incredible growth rate is proof."
While the study revealed that China is taking bold aggressive steps to
increase and diversify its domestic energy resources, it also revealed
that China is pursuing energy deals with countries around the world,
including rogue regimes, said the House Resources Committee.
"China is marching forward while we argue inane debates and partisan
rhetoric," Pombo continued. "And China won't hesitate to march right over
us in the upcoming decades if America does not improve its energy policy.
We must take similar and aggressive steps to increase American supplies of
renewable, alternative and conventional energy to grow our economy. I
intend to do just that."
The 70-page report explained the Chinese Communist Party plays a dominant
role in policy decision-making and economic affairs at all levels. The
government is attempting to meet projected energy needs by increasing
domestic-energy production and efficiency, according to the report. For
instance, China's Congress passed the Renewable Energy law in 2005, which
legalizes the regulatory framework for renewable energy development,
provides economic incentive and financial support for R&D, and promotes
construction and utilization of renewable energy facilities.
The DOE report highlights China's steps to increase its domestic energy
production, which stand in stark contrast to recent developments in U.S.
energy policies. For every pro-energy move in the making by China, the
release remarks on America's inability to do the same, in wind, domestic
reserves of oil, offshore production (which in China is growing at an
average of 15.3 percent per year), natural gas and LNG, coal, oil shale,
refineries, nuclear (on which China plans to spend approximately $50
billion on 30 additional nuclear reactors within the next 15 years), and
hydroelectricity (including China's 18.2-gigawatt Three Gorges Dam
project, which is scheduled to be operational by 2009).
Another consideration is an amendment by Energy and Commerce Committee
Chairman Joe Barton (R-TX), who asked the DOE to review whether a U.S.
company would be able to purchase a Chinese company under Chinese law. The
Barton amendment came during last year's attempt by China to buy
American-based Unocal.