As the world's first and second largest energy consumers, the United States and the People's Republic of China face serious common challenges that include increasing dependence on foreign sources, high energy costs, and increased environmental impacts. The energy security of both can be enhanced through cooperation. The US is a leader in many fields of energy research and technology, and the PRC has achievements of its own in such fields as high-energy physics, coal sequestration, and next-generation nuclear reactors. Promising steps have already been taken. Extensive bilateral energy dialogues exist at both policy and working levels. An energy policy dialogue between America's Department of Energy and its Chinese counterpart was inaugurated in 2004. The two sides are working together on 'smart buildings'. There are proposals for joint hydrogen development. Potential for further progress exists in these and other areas including air pollution and control, water treatment, solid waste treatment and disposal, renewable energy, pollution control, and energy efficiency equipment. Nonetheless, sovereignty issues remain, and both sides continue their desire for energy independence.
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