This week, the New York Times reported that "The Chinese government has signed cooperation agreements with the State of California and General Electric" under which the Chinese would supply "technology, equipment and engineers to build high-speed rail lines."
Chinese immigrants built our railroads in the 19th century. It looks like they'll own our railroads in the 21st.
And one of our largest utilities, Duke Energy (NYSE: DUK), is already in talks with State Grid Corp. - China's largest distributor of electricity - to form a joint venture in which the Chinese company would provide transmission solutions here in the States.
For Americans, it begs the question... Are we becoming a second-class nation, in danger of trading one dangerous energy addiction for another?
For investors, the story is entirely different. Because there's a way to profit no matter which companies are banking the cleantech dollars.
China & Everyone Else
By nearly all measures - and to many people's surprise - China is still setting the cleantech benchmark.
Their domestic wind market is the biggest. Chinese companies now account for a 50% share of the solar market, selling their products to Europe and the U.S. And the country's water problems are vast enough to create a lucrative market in that sector.
And as much as Chinese companies are trying to export their clean technology, companies based elsewhere are desperately trying to break into the Chinese market.
Danish wind company Vestas Wind Systems (COP: VWS) - the largest in the world - announced a 25-turbine order including delivery, installation, commissioning and maintenance for a farm in the Ningxia Hui Autonomous Region (NHAR).
That's the Danish company's second Chinese order this month, with total Chinese turbine orders now cresting 2,000 MW. Investors have taken notice, and the stock has surged ~30% in the past six weeks.
But in addition to wind, water, and solar... the Chinese auto market is about to come of age in a big way.
An emerging middle class is buying more and more cars each day, now making China the largest vehicle market in the world. (They just outgrew our wind market. Are you seeing the trend here?)
And just as they did in the energy market, China is about to leapfrog other countries with respect to the kinds of cars being sold.
The country is banking on efficiency and electric vehicles to propel them to the top of the global industry. A leading market analysis firm in China recently claimed, "Green energy cars represent a sort of gold mine on the horizon that all the companies hope to reach eventually."
SAIC Motor Corp. - China's leading car company - is showcasing hybrid vehicles at this week's Beijing Autoshow, and is spending $879 million on hybrid research.
Beijing Automotive Industry Holding Co. is showing off its hybrids as well, and plans to invest $334 million in the space.
But one Chinese car company is already far ahead of both of them.
This Buffet-backed battery company has already solidified hybrid market share in China, and is about to start selling cars in Europe and the U.S.
Early investors have already returned six times their money on the play, but much more is in store as they start raking in global revenue.
So stay optimistic that the U.S. will soon step up to the cleantech plate... just let reality dictate where you place your investment dollars.
Sources :
Special Thanks to the author, Nick Hodge @ http://www.greenchipstocks.com/articles/china-america-new-opec/928
http://www.greentechmedia.com/articles/read/u.s.-ignores-china-greentech-at-its-peril/
For more information, please contact :
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ENERGY, WATER and TAXES, LLC
Reducing Energy and Water Bills with Green Technologies and Tax Incentives.
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http://energywatertaxes.com
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