By Greg Hugh, Staff Writer  

The preceding headline was the topic of the June U.S.-China Business Connections (UCBC) meeting attended by a standing room only group. The presentation was delivered by Warren Vollmar, President, Forest Source, Inc.

At the beginning of his presentation, Vollmar noted that China is at a crossroads regarding creating an infrastructure for its power and energy needs.  It faces many conflicts with its need for energy vs. development, development vs. the environment, environment vs. energy, rural vs. urban, energy costs vs. social costs, food vs. fuel, cheap energy vs. reliability and alternative energy vs. cheap energy. 

These conflicts can be attributed to China’s meteoric rise resulting in the second highest use of energy in the world and it is estimated that vehicle use by 2020 will exceed the United States.  In 2006 China consumed 7.4 million barrels of oil per day of which 46 percent was imported and it is estimated that it will need to import 80 percent of its oil by 2020.  Because of this growth, 70 percent of China’s economic output is from heavy industry, and the country is faced with the need to urbanize.  It plans for 400 new cities by 2040 that each will have over 500,000 people and needs to move over 600 million people.  Current energy growth exceeds GDP by 1.2-1.4 percent Unfortunately, 70 percent of China’s energy comes from coal which saw demand double from 2000 to 2006. 

It is estimated that China has half of the world’s coal-fired plants and will boost CO2 worldwide by 14 percent.  According to Vollmar, half of all coal plants built 2001 to 2005 were small, inefficient and polluting: making China the largest polluter of CO2.  Besides rolling blackouts in the south and southeast, people in China are suffering devastating health consequences. Vollmar also discussed China’s Development Plans for 2020 that includes a goal to quadruple 2000 GDP of US$1.8 trillion, double energy production, increase per capita GDP from US$850 (2000) to US$3,000 and attain “Three Transcendences”:Sustainable Development, Peaceful Rise as a Great Power and Rule of Law:Harmonious Socialist Society. China also plans to implement an aggressive environmental plan with a goal of a 20 percent reduction in energy intensity by 2010 and produce 15 percent of all energy from renewable resources by 2010.  It is also seeking 36 MPG for passenger vehicles in 2008,to enact a national building code and close many coal-fired plants by 2010.  The country also plans to quadruple nuclear capacity to 40 GW by 2010.  Nuclear power is the third most important generation method after coal and hydropower, and China is the third largest producer in Asia after Japan South Korea according to Vollmar. 

In his closing remarks, Vollmar stated that China’s energy situation is presenting some great business opportunities for Minnesota companies that are limited only by imagination.  He proceeded to list the following categories as a few of these areas:  engineering and project management services; pollution control; healthcare products and services; advanced, efficient building materials; rapid transit systems; household and commercial heating systems; inexpensive, efficient appliances and lighting; electric and fuel efficient bikes and vehicles; solar component engineering and production; and cellulosic biomass advances. Forest Source, Inc. is a company that focuses on helping the environment, rural development and energy production and, according to Vollmar, the company manufactures wood pellets to replace home heating fuels such as propane gas and fuel oil, or to replace coal and natural gas used by utilities and commercial operations. Wood pellets are CO2 neutral, non-polluting, sustainable and renewable alternative fuel resource.  Mr. Vollmar can be reached at 612-423-4672 or via e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.. 

TOPICS FOR FUTURE UCBC MEETINGS The topic for the next meeting on July 9 will be “Talking Through an Interpreter: Communicating Effectively in China” and will be presented by Sheila LeGeros from LeGeros International. The topic for the meeting on Aug. 6, 2008 will be “Fitting a Big Box in a Crowded Country – Is China changing Wal-Mart or is Wal-Mart Changing China?”  Dr. David Davies from Hamline University will be the speaker. All of these presentations are breakfast meetings that begin at 7:30 to 9:30 a.m. at Minneapolis Community & Technical College, 1501 Hennepin Ave., Wheelock Whitney Hall, Rm. L3000, Minneapolis. To make a reservation to attend any of these meetings, e-mail This email address is being protected from spambots. You need JavaScript enabled to view it. or call Jim Smith at (612) 865-6543.  The cost is US$20 per person (UCBC members and college students are FREE).

  

 

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CHINAINSIGHT (CI) is published monthly ((except July/August and November/December are combined) by China Insight, Inc., an independent, privately owned company started in 2001 and headquartered in the Twin Cities area of Minnesota.

CHINAINSIGHT is the only English-language American newspaper to focus exclusively on connections between the United States and the People’s Republic of China (PRC).

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