Media Note
Office of the Spokesman
Washington, DC
May 25, 2010


The United States and China, as the world's largest producers and consumers of energy, share common interests and responsibilities to ensure energy security and face common challenges. The United States and China pledge to uphold the principles of mutually beneficial cooperation, diversified development, and coordination to ensure energy security; recognize that energy security and clean energy go hand-in-hand; and agree to strengthen cooperation in the areas of stabilizing international energy markets, ensuring diversified energy supply, and a rational and efficient use of energy.

Stabilizing the International Energy Market

The United States and China share a common understanding on maintaining the stability of world energy markets. International energy markets play an important role in meeting energy demand and stabilizing energy supply. Although international energy prices have fluctuated greatly over the past several years, using market mechanisms to meet future energy needs is still the primary and best choice for our two countries.

The United States and China reaffirm the common understanding reached by the Five Party Energy Ministers to establish open, transparent, highly efficient and competitive energy markets, including transparent and effective legal and regulatory frameworks. The two sides have decided to increase transparency of energy markets, work to avoid excessive oil price volatility, continue close cooperation with the IEA and other international organizations, and ensure the safety and stability of international energy markets. The two countries expect to open communication on establishing an energy emergency early-warning system, strengthen supervision of energy markets, and cooperate to prevent manipulation of oil futures markets.

The United States and China reaffirm our G-20 commitment to increase market transparency and market stability by publishing complete, accurate, and timely data on oil production, consumption, refining and stock levels, as appropriate, on a regular basis, ideally monthly.

The United States and China reaffirm our G-20 commitment to rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption; and stimulate investment in clean energy, renewables, and energy efficiency and provide financial and technical support for such projects in developing countries.

The United States and China recognize our common interests in improving energy market transparency and market stability, enhancing mutual understanding of national and global energy issues and strengthening bilateral collaboration, seek to establish a working group to make formal arrangements for cooperation between the U.S. Energy Information Administration and China’s National Energy Administration, including information sharing and technical assistance, the collection of energy production data (conventional and unconventional) and end-use consumption data through surveys, short- or medium-term forecasting methods, and strategies for the dissemination and analysis of energy information.

Ensuring Diversified Energy Supply

The United States and China, fully understanding the importance of global energy production, especially the significance of clean energy development, intend to work to ensure safe and stable energy supplies by upholding the principles of relying on domestic energy supplies, encouraging diversified development and strengthening cooperation. The two countries intend to discuss mechanisms that will allow quick communication and coordination in the event of a major energy supply emergency; maintain the stability of energy producing countries; ensure the safety of international energy transportation; and encourage enterprises from both countries to jointly develop oil and gas resources in third countries in order to increase oil and gas supply.

The United States and China have both committed to increasing investment in the energy sector. The United States and China are committed to developing their domestic energy supplies through open markets and broad based competition. Both countries welcome foreign investment to explore and develop these resources.

The United States and China have realized the importance of full development and utilization of domestic unconventional energy resources. As outlined in “The Memorandum of Cooperation on Shale Gas between the U.S. Department of State and China’s National Energy Administration,” the two sides formulated and signed the “U.S.-China Shale Gas Resource Task Force Work Plan between the U.S. Department of State and China’s National Energy Administration.” In order to promote China’s development of shale gas resources, the two sides intend to utilize U.S. experience in developing unconventional gas to cooperate in shale gas resource assessment, technologies of exploration and development and related policies, in accordance with China’s related laws and regulations. Both countries take this opportunity to note engagement in the area of shale gas between the U.S. Department of Energy, U.S. Trade and Development Agency and China’s National Development and Reform Commission. The two countries announced the 5th U.S.-China Energy Policy Dialogue and the 10th U.S.-China Oil and Gas Industry Forum will be held in September in the United States. The agenda for the Oil and Gas Industry Forum will focus on shale gas development and include a field study visit to U.S. shale gas producing fields.

The United States and China fully understand the importance of clean energy technology in achieving diversified energy supply and ensuring energy security. The two sides reaffirm the common understanding reached in the “Memorandum of Understanding to Enhance Cooperation on Climate Change, Energy and Environment,” “The Memorandum of Understanding on the U.S.-China Renewable Energy Partnership,” “The Protocol on the U.S.-China Clean Energy Research Center,” and “The Memorandum of Further Cooperation on Nuclear Safety for the Westinghouse AP1000 Nuclear Reactor.” The two sides, based on the principle of “joint research, risk sharing, and enjoying achievements together,” will continue to conduct deep and pragmatic cooperation in joint investment, research and development, production, and promotion in the areas of clean coal, safety and operation of nuclear power (advanced nuclear energy), renewable energy, smart grid, shale gas, advanced bio fuels, and electric vehicles. The United States Nuclear Regulatory Commission and China’s National Nuclear Safety Administration, after properly addressing the intellectual property rights protection issue and following the U.S.-China nuclear technology transfer practice, are willing to make concerted efforts to promote technical cooperation on the safety of High Temperature Gas Cooled nuclear reactors.

The United States and China share the view that diversifying the fuel mix in our vehicle fleets is fundamental to both countries' energy security in the decades ahead. Toward that end, the United States and China are committed to the promotion of electric vehicles, advanced vehicle energy saving technologies, and advanced alternative fuel technologies. The two sides reaffirm the importance of their cooperation on the U.S.-China Electric Vehicles Initiative.

Rational and Highly Efficient Use of Energy

The United States and China recognize that energy conservation and increasing energy efficiency are essential to achieve sustainable development and can greatly contribute to solving the challenges of energy security, climate change and environmental protection.

The United States and China reaffirm the commitment of the Five Party Energy Ministers to enhance global energy security through the promotion of energy conservation and energy efficiency measures as well as development and deployment of environmentally sustainable energy technologies.

The United States and China plan to conduct cooperation on energy conservation and improving energy efficiency under the framework of the “Energy Efficiency Action Plan of the U.S.-China Ten-Year Framework on Energy and Environment Cooperation” and enhance dialogue, hold energy efficiency forums, strive to improve energy efficiency in areas of industry, construction and end-use products; and to promote cooperation in areas of auditing and benchmarking of industrial energy efficiency, construction specifications, signs and evaluation system, test and signs of end-use energy products, personnel training, demo projects, and promotion of trade and investment.



PRN: 2010/T29-11