Monday, June 25, 2012

Chinese and U.S. Companies Sign $3.4 Billion Deal

On June 23, 2012, Chinese and U.S. companies signed $3.4 billion worth of bilateral investment agreements further strengthening economic ties between the two nations.

The companies met in Nanjing and signed contracts on forty-two projects spanning manufacturing, energy, property, logistics, and entertainment industries. Energy development, environmental protection, and cooperation between local governments of the two nations are amongst China’s focuses in the projects.

The Chinese central planners are especially interested in promoting environemtal protection and foreign cooperation in China’s less developed central and western regions. Of the $3.4 billion contracts, two are from U.S. companies promise to invest $527 million in the northwestern city of Xi’an, including one from a U.S. entertainment company.

The Linuo Group Co., a Shandong-based Chinese company with experiences in solar tubes, solar water heaters, and solar PV panels promised to invest in the U.S. to develop a solar energy project.

According to Clean Tech Consulting: Simple payback model used to calculate ROI on the solar industry does not consider the historic cost inflation of power which shortens payback times.

"Even with Federal tax credits, without cost of power inflation, the payback time is over 26 years. However, with historic inflation applied, a more accurate payback is 15 years."

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