Wednesday, September 13 2006 16:22 Hrs (IST) - World Time -

Hangzhou (China): China and the US agreed to focus their attention on efficient use of energy and development of new and renewable energy resources as key targets for their future energy cooperation.

The agreement was reached Wednesday during the second round of Sino-US energy policy dialogue, held in Hangzhou, the capital of Zhejiang province.

Deputy Director of China's National Development and Reform Commission (NDRC) Zhang Guobao said the US and China, as the world's major energy producers and consumers, face similar challenges with great potential for cooperation.

The two countries need to renew dialogue on energy cooperation with a new zeal now that energy shortages have become a global issue, said Zhang.

The Sino-US energy dialogue has become an important platform for the two countries to exchange ideas and find areas for cooperation.

The NDRC and the US Department of Energy signed a memorandum of understanding on bilateral energy policy dialogue in 2004. The two countries held their first energy policy dialogue in Washington last year.

NDRC statistics list 20 Sino-US joint oil and gas exploration projects in China, with a total US investment of $5 billion.