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Since more than 30 years the European Commission and China enjoy diplomatic relations, enshrined in the EU-China Trade and Economic Cooperation Agreement signed in 1985. Over the course of the last decades we have established a series of Sectoral Dialogues where the EU and China cooperate in specific areas. EC-China relations on energy are one of these dialogue series, and in fact constitute one of the most constructive areas of cooperation between the EC and China. Today the relations are marked by a mutual understanding of the added value of cooperation in the field of energy.
Energy cooperation has been in existence since 1994 and is one of the earliest Sectoral Dialogues between the European Commission and its Chinese partner in EU-China foreign relations. Two main bilateral forums on energy allow for close cooperation. Conferences between the Directorate-General for Energy and the Chinese Ministry of Science & Technology (MOST) take place on a bi-annual basis, alternating between China and Brussels since 1994. Furthermore an annual energy dialogue with the National Energy Administration of China (NEA) is being pursued since 2005. In addition, energy issues are also being discussed between Heads of States at the EU-China summits, which take place once a year. The most recent one took place in October 2010
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Six priority areas have been identified for cooperation between the EC and China in the field of energy: Renewable energy, smart grids, energy efficiency in the building sector, clean coal, nuclear energy and energy law.
China’s changing economy plays an important role in this respect. In 2010 China has passed Japan on the list of the world's largest economies, taking the second position behind the United States. Also, China overtook the US to become the world's biggest energy user and world's largest emitter of greenhouse gases. As a result of the extremely rapid growth of the Chinese economy, between 2000 and 2008 China's increase in the global energy demand was more than four times greater than in previous decades. In 2008 China accounted already for 16.4 % of global total final energy consumption. Even though per-capita consumption currently is comparatively low with only 35 % of OECD average, the prospects for further growth are strong.
Projections of total primary and per-capita energy demand in China and the OECD

Due to the increasing role of heavy industry in its development path, also energy intensity (unit of energy consumption per point of GDP) rose steadily in the last decade. In line with an increase of energy demand, also China's per capita emissions are increasing rapidly. China's growing energy consumption results further in the country becoming a net importer of oil, natural gas and coal. China has responded to these challenges by having adapted its energy policies respectively. In its 11th Five Year Plan, to be adopted in early 2011, it is expected that energy will be high on the agenda, encouraging local and provincial governments to deliver on energy efficiency.
Key economic and energy indicators for China

China's growing economy and its implications on energy and climate change are strong arguments for Europe to engage China in a constructive way and to cooperate closely in energy matters. Europe has an interest in supporting China's transition towards a low-carbon economy. Both the EC and China share the vision that an effective energy policy can function as the backbone of a sustainable and environmentally friendly economic policy. China's efforts in this respect constitute both challenges and opportunities for Europe. China is therefore a central partner for the EU in the field of energy.
Projections for cumulative electricity production capacity additions in China from 2009 compared with 2008 installed capacities of Japan, the EU and the US