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China and the United States agreed yesterday to intensify partnership in developing new and renewable energy resources to meet their increasing demands.

 

The consensus was reached during the second round of Sino-US energy policy dialogue, which was held in Hangzhou, capital of East China's Zhejiang Province.

 

Zhang Guobao, vice-minister of the National Development and Reform Commission (NDRC), the industry regulator, and the Assistant Secretary of the US Department of Energy Karen Harbert led respective teams during the talks.

 

As the world's major energy producers and consumers, China and the United States face similar challenges and have great potential for cooperation, Zhang said.

 

The officials discussed energy policies of their own countries and exchanged views on the current international energy situation.

 

They also discussed the topics of energy security, energy efficiency and energy saving, as well as recycling energy, and put forward concrete suggestions for bilateral cooperation, according to a Xinhua report.

 

The NDRC and the US Department of Energy signed a memorandum of understanding on bilateral energy policy dialogue in 2004. The two countries held their first energy policy dialogue in Washington last year.

 

NDRC statistics shows around 20 Sino-US joint oil and gas exploration projects in China, with a total US investment of US$5 billion.

 

"China and the United States consume one-third of the world's total oil and natural gas, so their cooperation in the sector will surely help stabilize the soaring crude oil prices in the international market," said Han Meng, an economic researcher at the Chinese Academy of Social Sciences.

 

Speaking at the seventh Sino-US Petroleum & Natural Gas Forum held in Hangzhou on Tuesday, Zhang said China will rely less on petroleum imports and more on coal, and develop new and renewable energy sources.

 

"China successfully reduced its net imports of petroleum last year, Zhang said.

 

According to the senior official, the Chinese mainland's oil consumption was 317 million tons last year, down slightly from the previous year, and its net imports of petroleum are 136 million tons, less than 2004.

 

"This amount makes up only 6 percent of total international oil traded," he said.

 

As China reduced its oil imports last year, the world still saw oil prices soar by 36.8 percent from the previous year, which "shows that China's impact on the soaring international oil price has been seriously overplayed," said Zhang.

 

As international oil prices remain high, Zhang said that China will reduce its oil imports by saving, tapping new and renewable energies, developing oil substitutes and optimizing consumption and production structure.

 

(China Daily September 14, 2006)