China, U.S. Technology Market Trades

Keith Kohl

Written By Keith Kohl

Posted September 22, 2015

New technology market trades are planned “to accelerate the deployment of U.S. technology and expertise in the Chinese market to substantially reduce CO2 and other climate-related emissions,” according to a statement from the Paulson Institute.

In the past, we’ve told you about U.S. advanced nuclear technologies going to China to assist in the country’s move to cleaner power.

Now, that initiative is growing and spreading into several sectors.

In a deal between U.S. company General Electric (NYSE:GE) and Chinese state-owned conglomerate Sinomach has plans for several new projects that will benefit the markets in both countries.

China US AgreementFirst, Chinese companies are set to build a high-speed railway between South California and Las Vegas, Nevada. In the past, China has wanted to break into the United States’ railway market, even taking its first step in 2014 by selling equipment to companies building the Boston subway system.

This project is expected to begin next year and be completed in three years. While the sources of funding are still unknown, the total investment in the railway will be about $12.7 billion.

Next, Sinomach and GE have entered agreements to dually-fund clean energy initiatives in Africa. GE has already begun sending equipment and offering services in Africa, and additional help from Sinomach will only speed up the process.

Finally, the two countries will begin funding a $3 billion initiative to bring more energy-efficiency projects online in China.

The country’s dire need of cleaner air isn’t the only motivation for such a trade deal. The current Chinese president Xi Jinping has a public image to repair: his poor handling of the recent Chinese market rout has not put him in good light.

The country also has allegations of cyberhacking and unauthorized island-building to atone for.

This week, Mr. Xi will meet with President Obama to discuss these issues, as well as the more hopeful prospect of a trade agreement.

The possible bilateral investment treaty (BIT) would offer both countries more open access to each other’s markets, expanding the U.S.’s reach economically and helping Chinese markets recover by finding more business overseas.

And the push for cleaner energy technology will certainly help Mr. Xi’s public image, which can itself do wonders for the markets.

To continue reading…

Click here to read the Wall Street Journal article. (May need a subscription to read in full.)

Until next time,

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Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

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