| Shanghai --
Except for its paint job, green to symbolize environmental friendliness,
the bus looked ordinary enough as it bumped along a suburban Shanghai street
late one recent morning. But it was strangely quiet. Only a distant hum
accompanied the rattles and passengers' conversations.
The hum came from a hydrogen fuel
cell providing clean, renewable energy to the demonstration vehicle, manufactured
by Shen-Li High Tech Co. Ltd., a private Shanghai company that set out
to make its fortune from hydrogen power for buses, taxis and generators
in the giant Chinese market.
Shen-Li, started here by a Clemson
University-trained engineer, Hu Liqing, found encouragement in a campaign
by the Chinese Communist Party to promote bold departures such as hydrogen
power.
Party leaders have decided that the
Chinese people, steeped in tradition and educated to obey party directives,
must learn to initiate and innovate, because the future of the Chinese
economy depends on it.
Most of China's economic boom has
come from young men and women working for low wages in factories that use
technology and product designs from abroad. As the economy matures, China's
government has warned, it must rely increasingly on new technology invented
by the Chinese themselves, who are being urged to turn assembly plants
into laboratories blooming with a hundred flowers of new ideas.
"We must speed up the construction
of an innovative nation," the Communist Party's Central Committee declared
after a Dec. 5-7 meeting.
But the experiences of Shen-Li and
other companies with ambitions to market hydrogen power suggest that China's
one-party system and pervasive controls hamper innovation in many fields,
from arts to sciences. In a nation where the party retains a monopoly on
power -- economic and otherwise -- bursting from the official mold with
a new idea and bringing it to market is never easy.
Although the need for pollution-free
vehicles and renewable energy is clear in China's increasingly choked cities,
the future of hydrogen power has remained in the grasp of a powerful officialdom
that decides on budget allocations. The government's senior levels repeatedly
have endorsed alternative forms of energy but have yet to take decisive
steps toward getting hydrogen-powered vehicles onto the streets.
The Shanghai municipal government
and party apparatus, proud of a can-do attitude that helped make their
city China's most prosperous, promised big-time investment in a hydrogen-powered
bus and taxi fleet. But the local leadership went down in a corruption
scandal in September, raising doubts about their plans.
"In China, it all depends on the
government," said Mao Zongqiang, one of the country's leading experts on
hydrogen and other alternative fuels at Tsinghua University's Nuclear and
New Energy Institute.
Hu, 43, made hydrogen power his mission
years ago, even before the Communist Party struck up its innovation theme.
After postdoctoral studies at Clemson and two years working in Vancouver,
British Columbia, he returned and founded Shen-Li in 1998 with the idea
of attacking the pollution in his native China and making money as well.
"We are trying to do something good
for human beings," he said in an interview at his factory in Shanghai's
suburban Longyang Industrial Garden. "Even in Canada, we are losing paradise.
Of course, Chinese people face an even more serious situation, and so that's
why I came back and tried to get people to focus on the future."
Hydrogen cell power is being developed
at major automobile companies around the world. Shen-Li has put together
its version by drawing on foreign parts and know-how and its own research.
It hopes to make its mark by finding a way to economically mass-produce
the propulsion systems.
The beauty of hydrogen power, Hu
said, is that a simple chemical reaction in the fuel cell combines hydrogen
and oxygen to make water, producing electric current to power a vehicle,
with water the only emission. Moreover, he noted, there are potentially
boundless supplies of hydrogen and oxygen, unlike petroleum.
The problem is that producing, storing
and distributing the hydrogen is expensive and requires an infrastructure
of filling stations that does not exist. In addition, the price of manufacturing
a hydrogen-powered vehicle exceeds that of producing a traditional gasoline-powered
one.
Until recently, that problem looked
like it was on the way to being addressed. The activist Communist Party
secretary for Shanghai, Chen Liangyu, and the Shanghai mayor, Han Zhen,
visited Shen-Li in July and told Hu they were serious about his technology.
The city government had put up about
$200 million for hydrogen cell research and development, some of which
kept Shen-Li and its 150 employees going. Shanghai officials announced
a plan to put 1,000 hydrogen-powered vehicles on the streets here by 2010
and 10,000 by 2015. After that, mass production would be on the horizon,
they suggested, and Shanghai would be at the forefront of the world's search
for affordable, environment-friendly transportation.
Under the plan, the state-owned Shanghai
Automotive Industry Corp. would produce a good share of the cars, and a
company in nearby Suzhou would produce the buses. Some officials suggested
General Motors Corp. would get a part of the deal as well. But that would
still leave a lot of business for Shen-Li.
"In Shanghai, I am very lucky," he
said then. "The politicians want to make an investment in the future."
But party secretary Chen was implicated
in a pension fund scandal and removed from power three months later. Shanghai
officials and business leaders waited for Chen's replacement, wondering
whether he would be as enthusiastic about hydrogen-powered vehicles.
Eminent Chinese scientists with connections
to the government then warned Beijing that hydrogen fuel-cell technology
may not be advanced enough to warrant large-scale investment. As a result,
official enthusiasm cooled.
From the headquarters of his Fuyuan
Century Fuel Cell Power Co. Ltd. in suburban Beijing, Zhong Jialun has
watched the ups and downs of hydrogen power plans in China with a practiced
eye. Zhong, 63, has seen many things come and go in his time, and now he
has put his money on hydrogen power.
"I've always been an optimistic guy,"
he said. "Everybody says China is the world's factory. But it's just a
factory. We haven't mastered the key technologies. But we aren't going
to allow things to stay that way. I agree with the government. We must
have our own innovative technology. We can't just sell cheap labor."

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