Joint Department of Commerce and Department of Energy: Smart Cities-Smart Growth Business Development Mission to China-April 12-17, 2015, 73545-73551 [2014-29015]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 79, Number 238 (Thursday, December 11, 2014)]
[Notices]
[Pages 73545-73551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-29015]


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 DEPARTMENT OF COMMERCE

International Trade Administration


Joint Department of Commerce and Department of Energy: Smart 
Cities-Smart Growth Business Development Mission to China--April 12-17, 
2015

AGENCY: International Trade Administration, Commerce.

ACTION: Notice.

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Mission Description

    The United States Secretaries of Commerce Penny Pritzker and Energy 
Ernest Moniz will lead a Smart Cities-Smart Growth Business Development 
Mission to China from April 12-17, 2015. This mission was announced 
during President Obama's visit to China in November 2014. It will 
promote U.S. exports to China by supporting U.S. companies in launching 
or increasing their business in the marketplace for Smart Cities-Smart 
Growth products and services, such as green buildings, building energy 
retrofitting, building management, green data centers, carbon capture, 
utilization, and storage (CCUS), energy efficiency technologies, clean 
air and clean water technologies, waste treatment technologies, smart 
grid and green transportation. Key elements will include business-to-
government and business-to-business meetings, market briefings, and 
networking events.
    On November 12, President Obama and President Xi jointly announced 
the two countries' respective post-2020 climate targets in Beijing. 
This announcement is a pivotal step in addressing the global challenge 
of climate change and movement towards achieving the deep 
decarbonization of the global economy. This announcement should 
encourage other major economies to put forward ambitious commitments 
soon and should urge countries to work across traditional divides so 
that a strong global climate agreement can be concluded at the United 
Nations Climate Change Conference in Paris in late 2015. The 
announcement is the culmination of a major effort by the two countries, 
inspired by serious shared concern about the global effects of climate 
change and our commitment to leadership as the world's largest

[[Page 73546]]

economies, energy consumers, and carbon emitters.
    This mission will build on strong climate change progress during 
the first six years of the Obama Administration, and supports the 
intent of the announcement, as it will help to achieve the ambitious 
climate goals of the announcement. It is one of several measures that 
will strengthen and expand U.S.-China clean energy cooperation, and 
support the deployment of cutting edge, innovative technologies to 
combat and adapt to climate change. Additionally, the recent 
announcements from President Obama and President Xi will spur new 
opportunities for U.S. clean technology companies in China.
    The delegation will be composed of senior executives (equivalent to 
C-suite) from 20-25 U.S. firms, representing the mission's target 
sectors. This collaborative interagency approach highlights the shared 
interest among U.S. Government agencies in promoting China as a 
critical overseas market for U.S. business interests, and reflects the 
``All of Government'' approach to President Obama's National Export 
Initiative.

Commercial Setting

Overview of China

    In November 2013, following the Third Plenum of the 18th Chinese 
Communist Party Congress, President Xi Jinping rolled out an ambitious 
agenda to re-shape the Chinese economy and fully embrace the market as 
the ``decisive force'' in shaping the country's economic future. In 
order to continue China's labor force evolution to fuel its 
unprecedented growth, Xi directed his administration to implement 
policy changes that increase domestic consumption, stimulate domestic 
innovation, and develop a world-class services sector, supporting the 
expansion of China's middle class and movement of millions of rural 
Chinese citizens to urban centers.
    U.S. goods exports in 2013 to China were $121.7 billion, up 10.2 
percent from the previous year. Corresponding U.S. imports from China 
were $440.4 billion, up 3.5 percent. The U.S. goods trade deficit with 
China was $318.7 billion in 2013, up $3.6 billion from 2012. China is 
currently the third largest export market for U.S. goods.
    U.S. exports of private commercial services to China were $37.4 
billion in 2013, and U.S. imports were $14.3 billion. Sales of services 
in China by majority U.S.-owned affiliates were $36.5 billion in 2012 
(latest data available), while sales of services in the United States 
by majority China-owned firms were $1.7 billion.
    Urbanization is one of Premier Li Keqiang's top priorities; it is a 
mechanism for modernization, a potential engine of future economic 
growth, and a way to avoid the ``middle income trap.'' Premier Li 
estimated in a major speech on urbanization that another 300 million 
Chinese citizens will move to cities over the next 12 years. New cities 
that are clean, resource efficient and well planned will avoid many 
millions of tons of greenhouse gas emissions (GHG) emissions. Globally, 
residential and commercial buildings account for approximately one-
quarter of GHG emissions (including electricity consumption). Given 
China's tremendous need to build and re-develop cities, this area of 
focus is of great interest to the Chinese government. China's Minister 
of Science and Technology, Wan Gang has raised ``smart infrastructure 
for urbanization'' as a top priority for U.S.-China cooperation at 
nearly every recent opportunity including at the July 2014 Innovation 
Dialogue, at the U.S.-China Strategic and Economic Dialogue (S&ED) and 
during his visit to Washington, DC in September 2014.
    In 2010, China identified five Chinese provinces, including 
Guandong Province, and seven Chinese cities to serve as low-carbon 
pilot programs. Each territory was required to set a GHG reduction 
target, create a local cap-and-trade program, pursue low-carbon 
development, and serve as a model for other cities. Sub-national 
authorities experimented with climate mitigation policies to determine 
which ones would work best in the Chinese context. The National 
Development and Reform Commission (NDRC) announced an additional 29 
provinces and cities in 2012. China's New Energy City platform involves 
100 cities in China that will work toward achieving aggressive 
renewable energy targets.
    Moreover, during the recent Asia Pacific Economic Cooperation 
(APEC) Leaders' meeting hosted by China in Beijing, Leaders called for 
the promotion of inclusive and sustainable development, and for 
cooperation projects that explore new ways of urbanization that are 
green, low-carbon and people-oriented. In the July 2014 Report of the 
U.S.-China Climate Change Working Group, the United States and China 
agreed to ``explore appropriate cooperative efforts sub-nationally 
among our states, provinces, and cities on climate-related policies and 
programs'' as a potential area of future cooperation.

Overview of Construction and Green Building (Design, Smart 
Urbanization, Better Cities)

    From 2011 to 2013, the construction market in China grew 
exponentially, and more modestly in 2014. Demand for construction of 
energy efficient buildings will increase as China continues to rapidly 
urbanize. On March 16, 2014, the Chinese government issued the National 
New-type Urbanization Plan for 2014 to 2020, which aims to lift the 
proportion of Chinese citizens living in cities from the present 53.7 
percent to 60 percent by 2020.
    With the urbanization of China expected to continue to grow, green 
buildings will be relied on to fulfill the demand for new energy 
efficient buildings. New construction of urban green buildings is 
expected to rise from 2 percent in 2012 to 50 percent by 2020. From 
2010 to 2030, China is expected to increase floor space growth in a 
range of 15 to 23 billion square meters.
    The State Council Green Building Action Plan of 2014 has reaffirmed 
the importance of the Ministry of Housing and Urban-Rural Development's 
(MOHURD) green building standards under China's 3-Star Rating System. 
The Action Plan requires all government-invested projects such as 
schools, hospitals, museums, science museums, stadiums and affordable 
housing, as well as any single building area over 20,000 square meters 
such as airports, railway stations, hotels, restaurants, shopping 
malls, offices and other large public buildings to meet the MOHURD 
standards.
    The U.S. Government has collaborated with Chinese Ministries to 
prime municipal markets for U.S. cleantech goods and services. Under 
the U.S.-China Eco-cities collaboration, the U.S. Department of Energy 
(DOE) works with seven Chinese cities on planning, best practices and 
energy efficiency technology deployment. DOE and the China Academy of 
Building Research helped introduce the first-ever rural building energy 
code in China, and are exploring new opportunities on efficiency 
standards. These and similar programs have enabled stronger deal-making 
connections between U.S. companies and local decision-makers in China, 
while maintaining supportive relationships with China's central 
government. These programs have resulted in commercial successes, and 
clear emissions and energy intensity reductions.

[[Page 73547]]

Overview of Energy Efficiency (Smart Grid, Green Data Centers, Certain 
Engineering Services)

    China is the world's largest market for power transmission and 
distribution, and is the world's leading consumer of smart grid 
technologies. China is currently constructing a series of ultra- high 
voltage (UHV) grid and urban-rural distribution grids. This includes 
the construction of smart grid operation and control systems and the 
installation of tens of millions of smart meters across the country. 
China now has nearly 250 million meters installed and is expected to 
continue to build out and update its metering system through 2017. The 
total of these investments is expected to grow to nearly $20 billion 
annually through the end of the decade.

Smart Grid

    As part of the Government's efforts to reduce the carbon intensity 
of its economy, combined with the massive increase in the use of 
renewable energy, the country will require significant smart-grid 
technologies to support these endeavors. As such, there are significant 
opportunities for smart meters, battery storage, communication devices, 
integrated solutions, and engineering services.
    The USG is already cooperating with China in the Smart Grid space 
through several U.S. Trade and Development Agency programs, as well as 
through the U.S.-China Climate Change Working Group, the U.S.-China 
Renewable Energy Partnership (USCREP) and others. These programs can 
complement the aspect of the mission to further pull the private sector 
into these initiatives.

Smart Cities

    The Smart City represents a new mode of urban development and is a 
system composed of multiple systems. The key goal is low-carbon 
urbanization. By leveraging expertise in infrastructure with 
collaborative business models, companies deliver complete solutions 
that can help make cities more efficient, livable and sustainable by 
focusing on five key areas: (1) Energy, (2) transportation, (3) 
buildings & homes, (4) water, and (5) public services. Smart Cities may 
implement new energy-efficient technology in any of these key areas: 
Electric vehicle charging stations are just one example of a greener 
Smart City. Today, technology is revolutionizing how businesses, 
consumers and governments decrease their carbon footprint worldwide 
while increasing productivity through smart homes, smart buildings, 
smart transportation and smart grids. Globally, smart technologies have 
the potential to reduce carbon dioxide (CO2) by as much as 
15 percent.
    DOE is collaborating with 13 Chinese cities to both reach low-
carbon urbanization goals and increase U.S. clean energy technology 
exports to China. These collaborations focus on the policy development 
that primes Chinese municipal markets for U.S. technologies. 
Specifically, DOE provides technical assistance with the development of 
China's urban sustainability plans and deployment of demonstration 
projects, which include U.S. companies and products and provide data 
back that strengthen U.S. modeling capabilities.

Green Data Centers

    China is in the midst of an unprecedented data center construction 
surge that will provide the country with one of the most advanced 
computing infrastructures in the world. The government has made 
expanding the national computing infrastructure a part of its latest 
five-year plan. The Chinese are building numerous large data centers to 
support the needs of the nation's fast-growing population of Internet 
users, estimated at around 500 million. New data centers also will help 
meet the escalating demand for services such as e-commerce, online 
banking and e-government. The Chinese approach to data centers is to 
build more and build big. The data center expansion will also provide 
computing infrastructure for foreign firms looking to expand in China.
    Data center site selection is a resource issue. The majority of the 
data centers in China are located in the cities of Beijing, Shanghai, 
and Guangzhou, where real estate prices and electricity costs continue 
to escalate. As a result, the government is now encouraging companies 
to build data centers in the western Chinese provinces of Xinjiang, 
Gansu, Qinghai, and Shanxi, where real estate is more affordable and 
electricity is abundant.
    China is in the process of drafting national energy efficiency 
standards for computer servers used in data centers, under the guidance 
of the Standardization Administration of China (SAC) and the Ministry 
of Industry and Information Technology (MIIT).The United States and 
China are also discussing a green data center pilot project and study 
to demonstrate energy efficiency technologies and provide 
recommendations for MIIT on energy efficiency standards for data 
centers.

Overview of Carbon Capture, Utilization, and Storage

    China is the world's largest energy consumer and the leading 
emitter of greenhouse gases. In 2013, coal accounted for 65 percent of 
China's overall (i.e., primary) energy consumption. It is the most 
coal-dependent country among top energy consumers. China's major cities 
have long endured high levels of air pollution from coal use in the 
power, industrial, and residential sectors along with emissions from 
the transport sector. In 2013, 92 percent of Chinese cities failed to 
meet national ambient air quality standards. While this has not held 
back construction of new coal-fired plants or factories, many old, 
inefficient, polluting facilities have been closed. Also, China has an 
aggressive effort to replace old coal facilities with cleaner, more 
efficient facilities in both the power and industrial sectors. Coal 
burning is responsible for a significant share of the of the country's 
PM2.5 (particulate matter less than 2.5 micrometers in 
diameter) pollution.
    China considers CCUS technology an important part of its clean coal 
technology option in both short and long terms. The International 
Energy Agency (IEA) forecasts that by 2050, CCUS could become the 
biggest contributor to CO2 emissions reduction technology 
among single technologies. China is emerging as a major influence on 
CCUS deployment, with several operational and planned demonstration 
projects. The country has adopted an encouraging policy framework and 
has increased the support for research and development (R&D) projects. 
As a pioneer within CCUS, the United States has developed cutting-edge 
technology through various R&D and demonstration projects. DOE 
administers a Clean Coal and Carbon Management Program to encourage and 
support public/private partnerships to research, develop, and 
demonstrate clean coal technologies, in particular, CCUS, to accelerate 
large-scale commercial deployment.
    The United States and China--through a variety of bilateral and 
multilateral platforms, including the U.S.-China Fossil Energy 
Protocol, the U.S.-China Clean Energy Research Center (CERC), the U.S.-
China Climate Change Working Group (CCWG), the Carbon Sequestration 
Leadership Forum (CSLF), and the APEC--are working together to promote 
the deployment of CCUS. Under the CCWG/CCUS Initiative, the United 
States and China are working together to accelerate the adoption of 
CCUS in both countries through joint efforts on large, integrated

[[Page 73548]]

CCUS demonstration projects within the next three years. Both sides are 
exchanging key technical and economic assessments and information on 
demonstrations, along with their results. This is being achieved in 
large part through joint counter-facing CCUS demonstration projects in 
both countries, focusing on CO2 use in enhanced oil recovery 
(EOR) and other beneficial uses of CO2 initially, as well as 
CO2 storage in saline formations, wherever possible. These 
identified projects are essential to proving technological and 
commercial viability of CCUS, thereby accelerating the creation of 
markets and widespread deployment. Guangdong Province has been 
identified as a key target for potential collaboration on a saline 
storage demonstration project with U.S. company participation. There 
are also opportunities for Chinese direct investment in U.S. CCUS 
projects.

Advanced Coal Gasification Technology With CCUS

    Integrated gasification combined cycle (IGCC) power generation is a 
new technology, which has reached commercial status. Two plants, 
supported in DOE's Clean Coal Technology Program, were built in the 
1990's. A new IGCC plant, based on Southern Company's and KBR's 
Transport Reactor Integrated Gasification (TRIG\TM\) technology for 
low-rank coals is expected to be operational in 2016. Today's IGCC 
technology emits equal or more CO2 than many supercritical 
and ultra-supercritical (U.S.C.) power plants on a ton of 
CO2 emitted per net kilowatt (kW) basis. However, IGCC 
provides an opportunity to remove CO2 prior to combustion 
(i.e., pre-combustion) and to coproduce valuable chemical and liquid 
transportation fuels. New technology and equipment (i.e., CCUS) to 
these two problems are good prospects for U.S. companies. Combining 
coal gasification with carbon capture and storage in the power sector 
is a critical pathway for both countries towards low-carbon power 
generation. China has high interest in developing and demonstration new 
coal co-production systems with CO2 capture. The United 
States is leading the world in such technology demonstrations, and has 
much to offer China.

Carbon Storage

    China has significant interest in EOR technology to increase 
domestic oil production. However, it lacks EOR technology and know-how 
to deploy CCS in EOR applications, which is generally viewed as the 
market entry for CCS as it produces a high-value product--crude oil. 
The United States developed EOR technology over the past 40 years based 
on extracting, transporting, and injecting CO2 from natural 
reservoirs and separation during natural gas production. China also has 
expressed interest, including cooperation under the CCWG/CCUS 
Initiative, on long-term storage of CO2 in saline 
formations, which also offers an opportunity to produce potable water 
through enhanced-water recovery (EWR) via reverse osmosis by taking 
advantage of the pressure from CO2 injection. These are 
areas where U.S. companies are leading the world, and have much to 
offer China.

Overview of Environmental Technologies (Cement Plant Air Pollution 
Reduction, Power Plant Emissions Reduction, Groundwater Monitoring, 
Pollution Prevention, and Remediation, Municipal Water and Wastewater 
Treatment and Plant Development, Process and Produced Water, Water 
Efficiency and Reuse, Sludge Treatment)

    In 2012, China's environmental technologies market was estimated to 
be worth $27 billion, and is expected to grow exponentially in the 
coming years, eclipsing the $275 billion U.S. market and becoming the 
largest global consumer of environmental technologies by 2025. As a 
global leader in producing and implementing environmental technologies, 
the U.S. environmental technologies industry is poised to grow 
dramatically if the United States can successfully position itself as 
China's primary provider of these technologies and associated services.
    U.S. companies also are well positioned to take advantage of 
immediate opportunities in air pollution monitoring and control; water 
and wastewater treatment and protection; and waste management.

Cement Plant Air Pollution Reduction

    China's rapid economic development has immensely increased cement 
demand for infrastructure, industrial, commercial, and residential 
building projects. Limiting the environmental impact of cement 
production by instituting ``green cement'' technologies has become a 
priority of the Chinese government. The size of the global cement 
industry is expected to double by 2030 with most of this increase 
taking place in China. It is estimated that the Chinese cement industry 
completed $7.2 billion worth of fixed asset investments in 2007 alone, 
prompted by factors that include high energy costs and emission 
reduction mandates.

Power Plant Emissions Reduction

    The Chinese power generation sector is heavily reliant on coal. 
Coal-fired power plants generated about 70 percent of China's 
electricity in 2011 although coal's share of power generation has been 
trending downward in recent years. Coal power generation significantly 
contributes to air quality issues in the region. To address related 
environmental and human health concerns, the Chinese government 
initiated the development of air pollution control regulations. The 
Chinese Government also participated in negotiations of the Minamata 
Convention on Mercury, a global legally binding instrument to reduce 
mercury use and emissions. The text of the Minamata Convention was 
adopted by over 150 countries, including China, in January 2013. Given 
that coal-fired power plants represent a major source of airborne 
mercury (and other toxins), the implementation of this instrument will 
further foster Chinese interest in air pollution control emission 
control technologies--a technology area where the United States leads 
the world in commercial deployment.

Groundwater Monitoring, Pollution Prevention, and Remediation

    Much of China's groundwater resources have been degraded by 
pollution limiting their use as a reliable source for drinking water. 
The Ministry of Land Resources reports that 57 percent of ground water 
ranks `bad' or `very bad' in quality estimates. The National 
Groundwater Contamination Prevention and Remediation Plan calls for a 
$5.6-billion investment through 2020. Ground water protection efforts 
are focused on monitoring, source control, and remediation. The 12th 
Five-Year Plan delineates the study of pollution assessment, 
monitoring, and simulation in order to establish a national monitoring 
system and quality standards. Source control research focuses on 
hazardous waste storage, landfill contamination, oil and gas 
extraction, mining, agriculture, and underground piping and disposal 
systems to establish control techniques and rules. China seeks to 
address contaminated groundwater by conducting a groundwater pollution 
remediation pilot study that will inform national approaches to 
groundwater remediation and lead to subsequent large-scale remediation 
projects. U.S. Superfund experience in groundwater remediation creates 
a competitive advantage for U.S. companies.

[[Page 73549]]

Municipal Water and Wastewater Treatment and Plant Development

    Aggressive construction of water treatment plants continues as 
China works to improve water quality and enhance access to drinking 
water and sanitation services. The China Greentech Initiative (CGTI) 
reports that 40 billion cubic meters of urban water supply capability 
will be added by 2015. Furthermore, the South-to-North Water Diversion 
Project mandates the construction of 426 wastewater treatment plants 
along the eastern route to treat heavily polluted surface waters. 
Tightening of national regulations will provide retrofit opportunities 
for existing plants.

Process and Produced Water

    New effluent standards and better enforcement thereof are driving 
growth in produced water treatment, while continued industrial 
expansion and water reuse targets promote the process water market. 
Investments in improved effluent management are expected to reach $20 
billion by 2015. The State 12th Five-Year Plan targets nine sectors for 
improved produced water treatment: paper and pulp, raw chemicals, 
petroleum refining, textiles, dyeing, pharmaceuticals, ferrous metals 
processing, food processing, and power generation. The China Greentech 
Initiative has developed a list of top tier client industries using 
government prioritization, pollution reduction targets, discharge 
volumes, and treatment profitability measures. They include 
pharmaceuticals, beverages, paper and pulp, raw chemicals, textiles, 
agricultural food processing, and coal mining and washing. Second tier 
industries include ferrous metal processing, petroleum refining, 
tobacco, food manufacturing, and chemical fibers.

Water Efficiency and Reuse

    China's scarce fresh water resources have made water efficiency and 
reuse a national priority designed to limit further economic 
disruptions due to water shortages. These priorities will be a boon to 
membrane, non-revenue water management, and industrial water efficiency 
technologies. It is estimated that water reuse will lead to 30 percent 
annual growth over the next five years in the membrane technology 
market.

Sludge Treatment

    China discharges approximately 22-30 million tons of untreated 
sludge annually, a growing and persistent environmental challenge. 
Recent government action has led to the development of technology 
standards for sludge treatment, a requirement that municipalities 
install sludge treatment systems, and a central government capital 
development investment of $9.7 billion for sludge treatment facilities. 
Nonetheless, lack of domestic operational expertise and technology for 
sludge treatment remains a challenge for China that could provide 
sludge treatment opportunities for U.S. firms. In February 2011, the 
NDRC and Ministry of Housing and Urban-Rural Development (MOHURD) 
issued plans for developing sludge treatment demonstration projects 
using advanced technologies. U.S. involvement in those demonstrations 
could enhance down-stream export opportunities. The municipalities of 
Beijing, Guangdong, Hebei, and Hubei are top prospects, having set 100 
percent treatment targets by 2015.

Other Products and Services

    The foregoing analysis of the opportunities in China is not 
exhaustive, but illustrative of the many opportunities available to 
U.S. businesses. Applications from companies selling products or 
services within the scope of this mission, but not specifically 
identified, will be considered and evaluated by the U.S. Department of 
Commerce and the U.S. Department of Energy. Companies whose products or 
services do not fit the scope of the mission may contact their local 
U.S. Export Assistance Center (USEAC) to learn about other business 
development missions and services that may provide more targeted export 
opportunities. Companies may call 1-800-872-8723, or go to https://help.export.gov/ to obtain such information.

Mission Goals

    This mission will reaffirm the U.S. commitment to sustained 
economic partnerships in China. The mission's purpose is to support the 
business development goals of U.S. firms as they construct a firm 
foundation for future business in China and specifically aims to:
     Assist in identifying potential partners and strategies 
for U.S. companies in the target sectors.
     Confirm U.S. Government support for the activities of U.S. 
businesses in China and to provide access to senior decision makers in 
the Chinese government.
     Confirm U.S. government support for existing government-
to-government and government-to-business collaborations on lowcarbon 
urbanization work.
     Promote more widespread application and deployment of CCUS 
in China.
     Listen to the needs, suggestions and experience of 
individual participants to help shape appropriate U.S. Government 
positions regarding U.S. business interests in the region.
     Organize private and focused events with local business 
and association leaders capable of becoming partners and clients of 
U.S. firms as they develop their business in China.
     Assist development of competitive strategies and market 
access with high level information gathering from private and public-
sector leaders.

Mission Scenario

    The mission will stop in Beijing, Shanghai, and Guangzhou with an 
optional stop in Hong Kong. In Beijing, the capital of China, the 
schedule will primarily consist of scene setting briefings, and 
engagements with Chinese officials. In Shanghai and Guangzhou, 
participants will meet with pre-screened potential agents, 
distributors, and representatives, as well as other business partners 
and government officials. The participants will also attend market 
briefings by U.S. Embassy officials and other industry experts, as well 
as networking events offering further opportunities to speak with local 
business and industry decision-makers.
    After the conclusion of the mission, delegation members will also 
have the opportunity to sign-up for an optional add-on stop in Hong 
Kong. During this optional stop, participants will meet with pre-
screened potential agents, distributors, and representatives, as well 
as other business partners and government officials through the 
Department of Commerce Gold Key program. The optional stop in Hong Kong 
will not include Secretary Pritzker or Moniz.

[[Page 73550]]



                           Proposed Time Table
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------------------------------------------------------------------------
Sunday, April 12 and Monday,    Beijing..........  Business Development
 April 13.                                          Mission Orientation.
                                                   Welcome Dinner.
                                                   Industry Briefings/
                                                    Roundtable
                                                    Discussions.
                                                   Government Meetings.
                                                   Individual Company
                                                    Business
                                                    Appointments.
                                                   Networking Dinner or
                                                    Reception.
Tuesday, April 14 and           Shanghai.........  Industry Briefings/
 Wednesday, April 15.                               Roundtable
                                                    Discussions.
                                                   Government Meetings.
                                                   Individual Company
                                                    Business
                                                    Appointments.
                                                   Networking Dinner or
                                                    Reception.
Thursday, April 16 and Friday,  Guangzhou........  Government Meetings.
 April 17.                                         Individual Company
                                                    Business
                                                    Appointments.
                                                   Networking Dinner or
                                                    Reception.
                                                   Wrap-up Session.
                                                   Closing Dinner.
------------------------------------------------------------------------


              Optional Add-On Stop for Mission Participants
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Monday, April 20..............  Hong Kong........  Market Briefing by
                                                    U.S. Embassy
                                                    Officials.
                                                   Individual Company
                                                    Business
                                                    Appointments.
------------------------------------------------------------------------

Participation Requirements

    All companies interested in participating in the Secretarial 
Business Development Mission to China must complete and submit an 
application package for consideration by the Department of Commerce and 
Department of Energy. All applicants will be evaluated on their ability 
to meet certain conditions and best satisfy the selection criteria as 
outlined below. Approximately 20-25 companies will be selected to 
participate in the mission from the applicant pool. U.S. companies 
doing business in China, as well as U.S. companies seeking to enter the 
market for the first time may apply.
    Fees and Expenses: After a company has been selected to participate 
on the mission, a payment to the Department of Commerce in the form of 
a participation fee is required. The fee schedule for the mission is 
below:
Beijing, Shanghai and Guangzhou
     $12,500 for large firms
     $10,000 for a small or medium-sized enterprises (SMEs) \1\
---------------------------------------------------------------------------

    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations. 
Parent companies, affiliates, and subsidiaries will be considered 
when determining business size. The dual pricing reflects the 
Commercial Service's user fee schedule that became effective May 1, 
2008.
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     $3,500 additional firm representative (large firm or SME--
limit one additional representative per company)
Optional Add-on Stop in Hong Kong (Fee for Gold Key Service per day)
     $2,300 for large firms
     $700 for a small or medium-sized enterprises (SMEs)
    Participants selected for the trade mission will be expected to pay 
for the cost of all personal expenses, including, but not limited to, 
air travel, lodging, meals, communication, incidentals, unless 
otherwise noted. In the event that the mission is cancelled, no 
personal expenses paid in anticipation of a trade mission will be 
reimbursed. However, participation fees for a cancelled trade mission 
will be reimbursed to the extent they have not already been expended in 
anticipation of the mission.
    Business or entry visas may be required. Government fees and 
processing expenses to obtain such visas are not included in the 
participation fee. However, the U.S. Department of Commerce will 
provide instructions to each participant on the procedures required to 
obtain necessary business visas.
    Conditions of Participation: An applicant must sign and submit a 
completed application and supplemental application materials, including 
adequate information on the company's products and/or services, primary 
market objectives, and goals for participation. If an incomplete 
application form is submitted or the information and material submitted 
does not demonstrate how the applicant satisfies the participation 
criteria, the Department of Commerce or the Department of Energy may 
reject the application, request additional information, or take the 
lack of information into account when evaluating the application.
Each applicant must also:
     Identify whether the products and services it seeks to 
export through the mission are either produced in the United States, 
or, if not, marketed under the name of a U.S. firm and have at least 51 
percent U.S. content. In cases where the U.S. content does not exceed 
50 percent, especially where the applicant intends to pursue investment 
in major project opportunities, the following factors, may be 
considered in determining whether the applicant's participation in the 
Business Development Mission is in the U.S. national interest:
    [cir] U.S. materials and equipment content;
    [cir] U.S. labor content;
    [cir] Contribution to the U.S. technology base, including conduct 
of research and development in the United States;
    [cir] Repatriation of profits to the U.S. economy;
    [cir] Potential for follow-on business that would benefit the U.S. 
economy;
     Certify that the export of the products and services that 
it wishes to export through the mission would be in compliance with 
U.S. export controls and regulations;
     Certify that it has identified to the Department of 
Commerce any business matter pending before any bureau or office in the 
Departments of Commerce or Energy;
     Certify that it has identified any pending litigation 
(including any administrative proceedings) to which it is a party that 
involves the Departments of Commerce or Energy; and
     Certify that it and its affiliates (1) have not and will 
not engage in the bribery of foreign officials in connection with a 
company's/participant's involvement in this mission, and (2) maintain 
and enforce a policy that prohibits the bribery of foreign officials.
    Selection Criteria for Participation: Selection will be based on 
the following

[[Page 73551]]

criteria, listed in decreasing order of importance:
     Suitability of the company's products or services to the 
Chinese Market in the targeted industry sectors and the likelihood of a 
participating company's increased exports or business interests in 
China as a result of this mission;
     Potential of the company's product or service to 
significantly impact the energy, water, waste, emissions, and/or 
pollution in Chinese cities.
     Consistency of the company's products or services with the 
scope and desired outcome of the mission's goals;
     Rank/seniority of the designated company representative;
     Current or pending major project participation; and
     Demonstrated export experience to China and/or other 
foreign markets.
    The balance of entities participating in the mission with respect 
to type, size, location, sector or subsector may also be considered 
during the review process.
    Referrals from political organizations and any information, 
including on the application, containing references to political 
contributions or other partisan political activities will be excluded 
from the application and will not be considered during the selection 
process. The sender will be notified of these exclusions.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register (https://www.gpoaccess.gov/fr), posting on ITA's business development mission 
calendar (https://export.gov/trademissions) and other Internet Web 
sites, press releases to general and trade media, direct mail, 
broadcast fax, notices by industry trade associations and other 
multiplier groups, and publicity at industry meetings, symposia, 
conferences, and trade shows.
    Recruitment will begin immediately and conclude no later than 
January 23, 2015. Applications can be completed on-line and are 
available on the China Smart Cites/Smart Growth Mission Web site at 
https://www.export.gov/ChinaMission2015 or can be obtained by contacting 
the U.S. Department of Commerce Office of Business Liaison (202-482-
1360 or BusinessLiaison@doc.gov).
    The application deadline is Friday, January 23, 2015. Completed 
applications should be submitted to the Office of Business Liaison. 
Applications received after the January 23rd deadline, will be 
considered only if space and scheduling constraints permit. The 
Department of Commerce will evaluate all applications and inform 
applicants of selection decisions by February 6, 2015.
    How To Apply: Applications can be downloaded from the business 
development mission Web site (https://www.export.gov/ChinaMission2015) 
or can be obtained by contacting the Office of Business Liaison (see 
below).
    Contacts: General Information and Applications: The Office of 
Business Liaison, 1401 Constitution Avenue NW., Room 5062, Washington, 
DC 20230, Tel: 202-482-1360, Fax: 202-482-4054, Email: 
BusinessLiaison@doc.gov.

Elnora Moye,
Trade Program Assistant.
[FR Doc. 2014-29015 Filed 12-10-14; 8:45 am]
BILLING CODE 3510-DR-P