developing a blue economy in china and the united states
TRANSCRIPT
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Developing a Blue Economyin China and the United States
By Michael Conathan and Scott Moore May 2015
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1 Introduction and summary
4 China’s Blue Economy
8 The U.S. Blue Economy
13 Recommendations: Lessons learned
and opportunities for collaboration
16 Conclusion
18 Endnotes
Contents
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1 Center for American Progress | Developing a Blue Economy in China and the United States
Introduction and summary
As he world populaion balloons oward more han 9 billion people by 2050,1
naions will need new resources rom a finie amoun o space o mee soaring
demand. And as more people move o coasal regions, heir minds will ineviably
be drawn o he sea. Aer all, more han wo-hirds o our plane is covered wih
ocean, and he seas boas remendous economic developmen, ransporaion
corridors, sources o oil and gas, and cornucopias o seaood. Oceans also provide
less-angible benefis ha are oen difficul o quaniy, including moderaing he
plane’s climae by absorbing roughly 90 percen o he hea rapped by a hicken-ing amospheric blanke o carbon polluion.2 Tey produce more han hal o he
oxygen we breahe.3 In coasal regions, healhy coral rees and oher welands eco-
sysems saeguard communiies rom sorm surges and flooding evens, sequeser
massive amouns o carbon, and filer ou oher polluion produced on land.
o susain a 21s cenury populaion boom, we mus balance marine economic
developmen wih proecion o he ocean’s environmenal services ha have sus-
ained lie on our plane or millions o years. Tis repor examines he differen
ways ha wo naions, China and he Unied Saes, are approaching his dilemma
by promoing a concep known as he “Blue Economy.”
Te Blue Economy represens a relaively new manner o describing ocean
economic developmen ha began o emerge firs among many island naions,
including iny developing counries such as he Republic o Seychelles, as well
as he archipelagic gian Indonesia, he ourh-mos-populous counry in he
world.4 I’s now gaining recogniion in some o he world’s bigges and mos
powerul naions, including China and he Unied Saes, which have increas-
ingly begun o urn o he concep o he Blue Economy o promoe develop-
men o heir ample ocean and coasal resources. Honing he Blue Economy’socus could ulimaely pay dividends by allowing economic growh o blossom
alongside environmenal susainabiliy.
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China has no ypically been a he op o he lis o counries ha rely mos heav-
ily on heir ocean resources. Is exclusive economic zone, or EEZhe area o
ocean space over which a naion has sole righ o exrac resources including min-
erals and fishis he subjec o ongoing debae, wih China claiming a vas area o
he Souh China Sea ha neighboring counries also claim. Bu China has sough
o expand he economic conribuions i receives rom offshore resources.
Te Unied Saes, which boass he larges EEZ in he world,5 has also looked
beyond is shores o suppor is economy. Given boh naions’ economic clou,
he Unied Saes and China have remendous poenial o develop and implemen
policies ha promoe marine environmenal proecion and o prove ha hese
sraegies do no preclude he possibiliy o economic growh.
Ye as he Blue Economy emerges as a means o quaniying he economic benefi
o ocean indusries and resources, is rue definiion remains opaque. Adding up
he conribuions o all economic aciviy relaed o ocean and coasal ecosysemsis a relaively simple means o drawing boundaries. Bu i ails o accoun or he
realiy ha indusrial developmen requenly comes wih an environmenal cos.
Offshore ossil-uel exracion, or example, carries he risk o spills, which lead o
he degradaion o naural resources, and will increase emissions o carbon pollu-
ion and oher greenhouse gases. In oher cases, promoing one indusry means
prevening anoher; or example, an area designaed or shipping lanes would be
off-limis o consrucion o an offshore wind arm. As a resul, he ocean economy
canno simply be relabeled he Blue Economy. Te world needs a new definiion
o wha consiues a Blue Economy boh in order o promoe he economic ben-
efis o ocean indusries and o ensure susainable developmen.
In January 2014, developing naions came ogeher or wo days in Abu Dhabi o
explore and develop he concep o he Blue Economy under he auspices o he
U.N Susainable Developmen Knowledge Plaorm.6 Teir effors were based on
a concep paper ha esablished he Blue Economy as a “ramework or susain-
able developmen.” I explained ha “a he core o he Blue Economy concep is
he de-coupling o socioeconomic developmen rom environmenal degradaion
… ounded upon he assessmen and incorporaion o he real value o he naural
(blue) capial ino all aspecs o economic aciviy.”7
According o inernaional law, counries have sole economic jurisdicion over
ocean space ha exends 200 nauical miles ou rom heir shores.8 Small-island
developing saes have embraced he concep o he Blue Economy as a means
o maximizing he benefis ha accrue rom heir greaes asse: heir marine
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resources. Te Seychelles, or example, has a land area o 455 square kilomeers,
or 175 square milesroughly hree imes he size o he Disric o Columbia.
Ye i has dominion over an EEZ ha encompasses more han 1.3 million square
kilomeers, or more han 514,000 square milesnearly wice as large as exas.9
While island naions clearly have much o gain rom improved managemen oheir ocean resources, so do larger coasal naions, including he wo economic
leviahans: he Unied Saes and China. In boh naions, effors are underway o
beter undersand, define, and promoe he Blue Economy. Tis repor explores
he concep’s developmen, deailing he similariies and differences, and makes
recommendaions or how he Unied Saes and China can promoe a collabora-
ive undersanding o how o value he ocean’s naural resources around he globe.
Tis repor also proposes hree key recommendaions o help he Unied Saes
and China accoun or he rue value o robus marine naural resources and o
boos cooperaion as hey increasingly look o heir offshore regions or economicgrowh. Specifically, he Unied Saes and China should:
• Joinly develop a mehodology o accoun or he long-erm economic conribu-
ions o healhy coasal and ocean ecosysems
• Esablish join iniiaives under he U.S. Deparmen o Sae’s EcoParnerships
program, incorporaing ocean planning and Blue echnology clusers
• Enhance and expand exising bilaeral parnerships and develop new agree-
mens o ensure sharing o bes pracices and consisency o oceanographic daa
collecion and disseminaion
Leaders in boh China and he Unied Saes undersand he need o boos eco-
nomic growh, while curbing environmenal degradaion and reducing carbon
polluion and oher emissions ha uel climae change. Now, i’s ime or hem
o urn heir atenion o heir vas areas o ocean space and implemen poli-
cies ha acknowledge he rue economic and environmenal opporuniies ha
exis offshore.
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China’s Blue Economy
As a seady drip o media repors atess, China’s environmen is under growing
srain as a resul o high levels o polluion and overuse o naural resources. Te
concep o environmenal proecion is gaining greaer racion among Chinese
ciizens. In early March, a documenary film called “Under he Dome” wen
insanly viral in China, amassing more han 100 million views in is firs 24 hours
and an esimaed 300 million views beore he cenral governmen banned is
disribuion, according o a repor by Te Guardian.10 Te film is a 143-minue
exploraion o China’s environmenal degradaion hrough he eyes o is ciizens,and i includes a direc plea or ciizens o make heir voices hearda rare call o
acion in a sociey ha ypically does no permi such grassroos acivism.
China’s environmenal challenges do no sop a he waer’s edge. According
o he laes Marine Environmen Bullein published by China’s Sae Oceanic
Adminisraion, large pars o he counry’s coasal areas and erriorial seas are
heavily pollued. Nurien polluion, including nirogen and phosphae runoff, is a
major problem in China’s esuarine regions, creaing massive algal blooms.11 Tese
lead o severe europhicaionmore commonly reerred o in he Unied Saes
as dead zones, where a lack o oxygen in he waer kills all marine lie ha canno
escape o healhier areas. In major indusrial regions, paricularly he Bohai Sea,
heavy meal polluion is increasingly severe, wih marine sedimens bearing grow-
ing concenraions o mercury, cadmium, and peroleum compounds.12 China’s
near-shore fisheries are also overexploied, reducing fish landings in coasal areas
and pushing fishing flees urher and urher offshore.13 Moreover, oil and gas
producion and ranspor has become a significan problem or he marine envi-
ronmen. In 2010, a major spill near Dalian in norheas China covered some 430
square kilomeers and killed large numbers o fish and wildlie.14
Parially in an atemp o show ha i is addressing hese marine environmenal
challenges, China has embraced he concep o he Blue Economy. However, he
Chinese approach differs somewha rom he way he concep is defined in oher
naions. Globally, his ocean managemen and governance approach sresses
he environmenal, as well as economic benefis, o susainable developmen in
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he world’s coasal and marine areas. Meanwhile, he Chinese model sresses an
inegraed, cross-secoral approach o he developmen o coasal areasoffer-
ing lessons or oher counries, such as he Unied Saes, ha are seeking similar
approaches o marine regional planning. Bu China’s emphasis is no on environ-
menal proecion. Te Chinese governmen has aken a ew imporan seps o
beter proec marine ecosysems, bu is primary ocus has been on economicdevelopmenan approach ha marginalizes he key role ha ecosysem proec-
ion plays in susaining producive ocean environmens.
The evolut ion of China’s Blue Economy
China has roughly 9,000 miles o coasline, nearly all o which runs rom he
Norh Korean border o he norh o he Vienamese border o he souh. I
also includes he coaslines o several island possessions. Te Chinese govern-
men’s ineres in he Blue Economy concep daes back o he 11h Five-YearPlan, Beijing’s sraegic economic developmen plan, which covered he years
2006 hrough 2010 and included a se o specific daa ha covered he marine
economy.15 Perormance during his period was impressive, regisering average
annual growh o 13.5 percen and creaing some 33 million jobs by he end o
2010.16 Accordingly, in he 12h Five-Year Plan, spanning he years 2011 hrough
2015, China’s supreme execuive body, he Sae Council, issued a new se o
specific arges or China’s Blue Economy, including oal oupu value growh o 8
percen per year, value-added growh o 9 percen annually, and a goal or he Blue
Economy o make up 10 percen o oal naional gross domesic produc, or GDP,
by 2015.17 In addiion, he arges srongly incenivized research, developmen,
and innovaion, speciying ha research and developmen expendiures should
accoun or 2 percen o oal oupu value or he marine economy as a whole.18
Te inclusion o such specific and ambiious arges or Blue Economy secors as
par o China’s sraegic economic developmen plan suggess he degree o which
i has atraced he atenion o senior Chinese governmen officials.
Noneheless, i should be clear ha he erm “Blue Economy” does no neces-
sarily mean he same hing in he Chinese concepion as in he Wesern concep-
ion. Insead o reerring o a new model o marine resource use ha emphasizesenvironmenal susainabiliy, he Chinese concep insead signifies he inegraed
developmen o coasal and marine resources as par o a sraegic, naional
economic developmen plan. Tis role is ariculaed in he 2008 Naional Marine
Indusrial Developmen Plan, which proclaims ha “marine indusry mus occupy
a very imporan sraegic posiion” in China’s “socialis modernizaion.”19
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Te Naional Marine Funcional Zoning Plan shows he emphasis placed on coor-
dinaed developmen o boh land and sea resources. Te plan, originally issued by
he Sae Council in 2002, esablishes “land-sea coordinaion,” or lvhai ongchou,
as a cenral principle o zoning in coasal areas.20 Indeed, ocean planningin which
muliuse indusrial developmen and conservaion zones are planned or holisic
use o marine regionsplays an imporan par in China’s policy ramework orhe Blue Economy, which currenly relies heavily on economic developmen plans
or specific coasal areas. In 2011, or example, as par o he 11h Five-Year Plan
Marine Economic Developmen Sraegy, he Sae Council released plans o creae
a “Blue Economic Zone” in Shandong Province, cenered on he coasal ciy o
Qingdao and inended o ocus regional economic planning on he Blue Economy.
Te concep generaed significan growh in Qingdao’s GDP and was judged a suc-
cess. Te Sae Council approved an expansion known as he “Qingdao Wes Coas
New Area,” which is inended o serve as a hub or deep-sea and offshore explora-
ion, evenually susaining a regional Blue Economy o 1 rillion yuan by 2020.21
As described by he Sae Oceanic Adminisraion, he srucure o China’s Blue
Economy includes virually he complee range o economic secors. In addi-
ion o radiional marine resource uses such as fishing, shipping, and oil and gas
producion, China’s marine economic developmen sraegy also includes our-
ism, as well as new and emerging aciviies such as marine bioprospecing, which
is he search or new organisms ha migh prove valuable o he pharmaceuical or
cosmeic indusries.
In his broad definiion, China’s Blue Economy appears geared or significan
expansion and is poised o play a major role in he counry ’s economic growh
in coming years. According o he laes 2013 daa, China’s gross naional prod-
uc rom is marine economy increased 7.6 percen over 2012. Services such as
ourism accoun or he majoriy o China’s Blue Economy, wih ourism isel
accouning or some 35 percen o he oal. Ineresingly, while more radiional
resource exploiaion aciviies such as oil and gas developmen grew slowly, a
only 0.1 percen rom 2012, newer resource uses such as ocean mininglier-
ally, he rerieval o minerals rom he seabedgrew rapidly, a nearly 14 percen.
Marine bioprospecing, meanwhile, grew by 21 percen.22
Tis growh poenial, paricularly in higher-value-added indusries, appears o
have atraced high-level atenion. A he 2014 Chinese Communis Pary Work
Conerence, where naional prioriies or he coming year are discussed, China’s
leaders pledged o coninue o develop he counry’s marine economy, indicaing is
coninued imporance in he counry’s sraegic economic developmen sraegy.23
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Lessons learned from China’s Blue Economy
China’s effors o develop is Blue Economy offer several lessons or oher counries
seeking o beter uilize heir marine resources, including he Unied Saes. Firs,
he ormulaion o inegraed resource use and developmen plans across disparae
economic secorsincluding fisheries, energy, and ourismhas he poenial ohighligh common-sense and win-win policy opions o enhance economic develop-
men and proec he marine environmen. Second, specific policy suppor given o
innovaive, high-growh-poenial indusries, such as marine bioprospecing, may
underpin regional economic developmen in coasal regions and help susain vibran
enrepreneurial ecosysems cenered on marine and oceanic resources.
China’s pas emphasis on growh in he Blue Economy risks ignoring he need o
limi exploiaion o marine resources o susainable levels. Bu more recenly, he
Chinese governmen has appeared willing o benefi rom he experience o oher
counries in finding ways o susainably develop and uilize offshore and coasalregions. In Sepember 2014, under he auspices o he Asia-Pacific Economic
Cooperaion grouping, China hosed an Ocean-Relaed Miniserial Meeing,
where delegaes pledged o pursue susainable ocean developmen under he Blue
Economy concep, which hey called “an approach o advance susainable devel-
opmen and conservaion o ocean and coasal resources and ecosysems … in
order o oser economic growh.”24
China is advancing is vision or he Blue Economy wihin he naional governmen
and has developed i exceedingly well in specific local regions. However, allowing
he weaker, localized governmen eniies addiional conrol may no ranslae ino
significan gains in conservaion because broader environmenal iniiaives are sill
le o he naional governmen. Tereore, economic developmen has remained
he prioriy, leaving environmenal proecion somewha urher down he lis. Tis
approach aligns more wih simple accouning o he ocean economyall indus-
ries ha operae or rely on operaions in he marine environmen.
While he Chinese model o he Blue Economy presens ideas o uilize he
counry’s marine resources, he American experience offers several lessons or
how he developmen o he Blue Economy can simulaneously increase pros-periy and enhance marine environmenal proecion. Te nex secion oulines
he U.S. definiion o Blue Economy developmen and offers key lessons ha
China and oher naions can emulae.
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The U.S. Blue Economy
According o a 2014 Naional Ocean Economics Program sudy, “[i]n 2010 he
ocean economy comprised over 2.7 million jobs and conribued over $258
billion o he GDP o he Unied Saes.”25 Meanwhile, in 2012, shore-adjacen
counies were home o 48.8 million jobs and conribued $6.6 rillion o he U.S.
GDP.26 Te U.S. populaion ends o cluser in coasal counies, where roughly 10
percen o he land area is home o nearly 40 percen o American ciizens.27 Bu
he coasal economy figures really provide a backdrop rom which we can break
ou he specific marine-relaed indusries ha comprise componens o he BlueEconomy. For he purposes o his repor, he more relevan figures are hose ha
define he ocean economy.
Te Unied Saes has no direc ederal program specifically argeed a promoing
he concep o he Blue Economy. Bu in areas where he goals o a Blue Economy
have been developed, environmenal susainabiliy is a oundaional prioriy.
O course, environmenal sewardship has no always been paramoun o U.S.
managemen o is oceans and coass. In ac, he case can sill be made ha he
Unied Saes has no done enough o prioriize marine proecion in is ocean
policy and ha i sill has ample room o improve is environmenal sewardship.
For example, he Deparmen o he Inerior plans o orge ahead wih oil and gas
developmen in he remoe and dangerous waers o he Arcic Ocean, despie is
own findings ha ull, susained producion in he region would have a 75 percen
chance o resuling in a “major spill”28 and he ac ha he closes Coas Guard
saion or major por aciliies are hundreds o miles away.29 Similarly, he ailure
o adequaely address runoff rom agriculural aciviy is a direc conribuor o a
dead zone in he Gul o Mexico. Tis areadepleed o oxygen o he poin ha
i can no longer suppor liewas roughly he size o Connecicu in 2013.30
Sill, here is progress, and he case or promoion o he Blue Economy is growing.
In June 2009, less han hree monhs aer being sworn in as adminisraor o he
Naional Oceanic and Amospheric Adminisraion, or NOAA, Jane Lubchenco
defined he Blue Economy as “a vibran, ocean-based economy ha is economically
and environmenally susainable.” Lubchenco conended ha he Blue Economy’s
developmen is “essenial o he naion’s healh, prosperiy, and well-being.”31
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Lubchenco’s enhusiasic endorsemen o he concep nowihsanding, i has
allen o nongovernmenal organizaions and academic communiies o define he
Blue Economy in he Unied Saes and o advocae or is consideraion in he
developmen o ocean and coasal managemen iniiaives. As a resul, he concep
in he Unied Saes ends o ocus more on mehods o evaluaing and promo-
ing he economic conribuions o indusries ha link ocean healh and economicgrowh; rely on healhy oceans and coass o be profiable; conribue o resora-
ion o ocean resources; or resul in greaer undersanding o he ocean’s poenial
conribuions o sociey.*
Healhy ecosysems have inheren economic value, even i ha value is oen di-
ficul o quaniy. Coasal welands ecosysems, or example, serve as polluion
filraion sysems, buffers or sorm-surge flooding, and nurseries or commercially
and recreaionally imporan fish species. Tey also provide recreaional oppor-
uniies and enhance propery values. A 2014 Cener or American Progress and
Oxam America sudy o he economic value o hese areas ound ha or hreespecific sies in he coninenal Unied Saes, every dollar invesed by NOAA
o resore degraded coasal welands ecosysems reurned more han $15 in ne
economic benefis.32 Sudies such as his one make a srong case ha he Unied
Saes and oher counries mus look pas he immediae reurns o indusrial-
izaion o he world’s oceans and pay greaer atenion o he long-erm value o
oregoing developmen.
Measuring America’s Blue Economy
Tere is no hard and as line ha defines he boundaries o susainabiliy as a con-
cep. For example, one could make he case ha echnological developmens o
reduce emissions rom he shipping indusry or advancemens in oil spill cleanup
echnology should be couned as par o he Blue Economy because hey generae
economic aciviy rom he process o making indusrial aciviy less environmen-
ally harmul. Deermining a comprehensive definiion o he Blue Economy ha
includes direcly comparable subcaegories will allow greaer appreciaion or he
economic conribuions o his vial secor boh in he Unied Saes and globally.
A single inernaional erm could allow all naions o work collaboraively owardimproving managemen o he world’s marine naural resources.
* For the purposes of this document, the concept of the Blue Economy in the United States should be understood to includethe Great Lakes in addition to marine resources.
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In he Unied Saes, he curren pre-eminen ool or quaniying hese marine
economic conribuions is he Naional Ocean Economics Program, or NOEP,
operaed as par o he Cener or he Blue Economy, an academic insiuion
a he Middlebury Insiue o Inernaional Sudies a Monerey in Caliornia.
NOEP uses governmen daa o quaniy he economic conribuions o he
ocean economy and coasal economy.33
Te ocean economy includes indusries“explicily [ied] o he ocean, or … parially relaed o he ocean and locaed in a
shore adjacen zip code.” Te coasal economy is “he sum o all economic aciviy
occurring in counies defined by saes as par o heir coasal zone managemen
program or par o a coasal waershed.”34
U.S. ocean and coasal economies are major drivers o he naion’s prosperiy, bu
he sweeping caegorizaion promoed by NOEP does no acknowledge he envi-
ronmenal ramificaions o some o he larges conribuing indusries. Aciviies
such as minerals exracion can be major economic conribuors, bu hey also canpu a risk oher segmens o he economy ha rely on healhy, unspoiled oceans
and coass in order o exis a all. For example, ar ewer Americans would spend
heir vacaion dollars or a rip o beaches sained wih spilled oil or a porion o
heir grocery budge on seaood ained wih polluion.
FIGURE 1
The United States' ocean economy
Notes: "Construction" includes activity related to marine infrastructure, including ports, piers, energy development platforms, and beachrenourishment. "Living resources" includes fishing and aquaculture. Minerals includes sand and gravel mining, as well as oil and gasactivities. "Ship and boat building" includes construction and manufacturing of military, commercial, and recreational vessels. "Tourism
and recreation" includes restaurants, hotels, and activities such as surfing and diving. "Marine transportation" includes freight andpassenger transportation, as well as manufacturing of search and navigation equipment.
Source: Judith T. Kildow and others, "State of the U.S. Ocean and Coastal Economies 2014" (Monterey, CA: National Ocean EconomicsProgram, 2014), available at http://cbe.miis.edu/noep_publications/1/.
Construction
Living resources
Minerals
Ship andboat building
Tourism andrecreation
Marinetransportation
46,390
59,354
143,995
144,066
443,934
1,931,746
$5.51B
$6.02B
$87.37B
$10.84B
$89.25B
$58.73B
Number of jobs
GDP (in billions)
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Indusries in he Gul o Mexico experienced his calamiy firshand in he aer-
mah o he BP Deepwaer Horizon oil spill in spring 2010, when an esimaed 5
million barrels o oil gushed rom a rupured wellhead.35 Te oil and gas indusry
is clearly a huge economic driver or producing saes in he Gul o Mexico, bu
oher indusries el he brun o he disasrous spill. A 2012 sudy published in
he Canadian Journal of Fisheries and Aquatic Sciences ound ha he midpoinesimae o losses o jus he commercial and recreaional fishing indusries over
he “nex 7 years” would be approximaely $8.7 billion.36
Lessons learned from the U.S. Blue Economy
Te Unied Saes’ bes pracices or measuring he Blue Economy can provide a
useul guide or China. o explore he concep o he Blue Economy wih a more
direc ocus on he overlap beween economic growh and environmenal susain-
abiliy, CAP’s Ocean Policy program published an issue brie in June 2012. “TeFoundaions o a Blue Economy” ocused specifically on our aspecs o U.S. ocean
and coasal economies ha conribue o or rely on healhy oceans and coass and
simulaneously serve or have he poenial o serve as major economic drivers in
heir own righ: susainable fisheries, recreaion and ourism, coasal ecosysem
resoraion, and offshore renewable energy developmen.37 Te overarching goal
o his approach is o ensure ha he economic conribuions o healhy coasal
ecosysems are adequaely evaluaed so communiies and decision makers a all
levels o governmen can promoe and implemen policies ha provide he greaes
economic and environmenal benefis over he long erm.
Tis approach is by no means comprehensive o all ocean-relaed economic
aciviy, as i excludes some o he larges financial secors ha operae in he off-
shore space, paricularly shipping and offshore minerals developmen, including
oil and gas drilling. Oher organizaions wihin he Unied Saes have sough
o promoe he concep o he Blue Economy by including new and emerging
indusries. Tese indusries include echnological innovaors in secors such as
environmenal saey and compliance, marine roboics, aquaculure, desalina-
ion, and marine bioechnology.
NOEP also analyzes daa on he developmen o service indusries ha suppor
hese innovaors, including he porions o he financial and insurance secors ha
allow developmen o blue research and echnology. Tese secors are someimes
collecively reerred o as he “New Blue Economy” or “Blue ech.”
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Tese secors are undamenal o a sraegy o developing “Blue Clusers,” which
boh he Unied Saes and China are currenly implemening. Tis pracice involves
promoing he symbioic growh o ocean-relaed indusries, paricularly in he
research and high-ech secors, co-locaed in a single geographic area. As menioned
above, China is developing a “Blue Economic Zone” in he ciy o Qingdao in
Shandong Province.38
Meanwhile, in he Unied Saes, an organizaion called TeMariime Alliance and he ciy o San Diego, Caliornia, have promoed a similar
approach o blue growh. Teir model encourages businesses and indusries ha rely
on he mariime secor o operae in close geographic proximiy in wha is known as
a Blue ech, or mariime echnology, cluser, as deailed in he San Diego Mariime
Indusry Repor 2012.39 Tis allows he componen secors o collecively ake
advanage o economies o scale, operae more collaboraively when appropriae,
and deliver heir producs and services more efficienly o consumers and cliens.
One way o hink o his approach is similar o a shopping mallone-sop shopping
or users o connec wih developers and purveyors o mariime echnology.
Jus as China is pursuing a Naional Marine Funcional Zoning Plan, he U.S. gov-
ernmen is also in he process o prioriizing ocean planning. In 2010, Presiden
Barack Obama esablished a Naional Policy or he Sewardship o he Ocean,
Our Coass, and he Grea Lakes.40 Among oher prioriies, he Naional Ocean
Policy Implemenaion Plan encourages regional groupings o coasal saes o col-
laborae on regional ocean plans o help opimize curren and uure uses o ocean
space.41 Te Norheas and mid-Alanic regions are well ino heir ocean planning
processes, and in 2014, he Caribbean region iniiaed a regional planning process
o is own, calling he effor “key o supporing healhy marine ecosysems and he
economies o our coasal communiies.”42
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Recommendations: Lessons
learned and opportunities
for collaboration
Clearly, here are some similariies and some differences in how he Unied
Saes and China approach developmen o he Blue Economy. Jus as ocean
currens circle he globe, making marine ecosysems inherenly inerrelaed, so
should he wo approaches blend and lead o greaer collaboraion. Here, we
ouline hree key recommendaions or cooperaion beween he world’s wo
larges marine economic engines.
Jointly develop a methodology to measure long-term
economic contributions of healthy coasts and oceans
Boh China and he Unied Saes will coninue o develop heir coasal and ocean
economies. As he global populaion increases, addiional indusrial aciviies and
uses o offshore space will ineviably emerge as a resul o quess or resources,
ransporaion corridors, and space or inrasrucure projecs such as por acili-
ies. Ye any expansion o indusrial developmen in he ocean mus incorporae
principles o naural resource valuaion. Te resources hemselves conribue value
o sociey, and indusrial developmen ha harms or removes hese resources here-
ore comes a a cos. A sal marsh, or example, serves as a naural buffer o flooding
and sorm surge, and once i is desroyed and urned ino buil inrasrucure, he
land and surrounding land become subjec o addiional risk and damages when
flooding occurs. Wihou adequae accouning or hese coss, naions canno make
accurae long-erm projecions or economic reurns; hey may be able o calculae
projeced benefis, bu he rue coss will never be known. Robus, healhy ocean
and coasal ecosysems provide value, even i ha value may be difficul o quaniy.
Te Unied Saes and China are srongly posiioned o increase undersandingo hese values, which may change he calculus abou he benefis ha indusrial
developmen could acually provide o sociey. While he economic benefis o
leting naure run is course may be real, i no one makes a direc profi, here are
ewer advocaes o generae suppor in he cour o public or poliical opinion. In
his insance, Chinawih is srong, cenralized governmen and nonradiional
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14 Center for American Progress | Developing a Blue Economy in China and the U nited States
capialis srucuremay acually be in a beter posiion han he Unied Saes o
insiue policies ha reflec he principles o nonmarke naural resource valu-
aion. Te cenral governmen, aer all, should have a greaer ocus on he good
o he naion as a whole, no jus he good o is corporae eniies. Meanwhile,
American academic insiuions have been invesigaing hese conceps or
decades, and sharing ha knowledge wih China can lead o more rapid assimila-ion o naural resource valuaion mehods ino naional decision making.
Develop joint initiatives for ocean planning and Blue Technology clusters
A promising sep oward more robus Sino-American cooperaion on he Blue
Economy is he developmen o new iniiaives on marine developmen under
he U.S. Sae Deparmen’s EcoParnerships program, which suppors join
effors beween ciies and saes in he Unied Saes and China o address
shared environmenal challenges. A presen, many EcoParnerships ocuson climae- and energy-relaed issues. Bu one iniiaive beween he ciies o
Seatle, Washingon, and Dalian, Liaoning Province, ocuses on miigaing he
environmenal impac o large por aciliies. Addiional parnerships could
come o ruiion in he area o Blue ech. San Diego, Caliornia, and Qingdao,
Shandong Province, are wo ciies ha have become highly invesed in he pro-
moion o mariime echnology developmen, providing Blue Economic Zones
or companies o esablish hemselves in hese communiies.
U.S. and Chinese officials should make i a prioriy o connec regions in he wo
counries ha are developing he concep o ocean planning, someimes reerred o
as marine spaial planning. Te idea is ha as new usessuch as offshore renew-
able energy and seabed miningemerge and compee or ocean space wih exis-
ing indusriessuch as shipping and fisherieshe governmen should develop
a mehod o zoning he ocean o ensure ha hese aciviies can efficienly coexis.
China has already esablished is Naional Marine Indusrial Developmen Zoning
Plan. Te U.S. Naional Ocean Policy also prioriizes ocean planning iniiaives ha
bring neighboring sae represenaives ogeher wih ederal and ribal eniies,
marine indusries, and conservaion groups o collaboraively discuss managemen
o heir shared ocean space and resources. Forging parnerships beween areas suchas Qingdao and like-minded areas in he Unied Saes, such as Massachusets and
Rhode Islandwhere he concep o ocean planning has aken roocan help
srenghen cooperaion a boh subnaional and inergovernmenal levels.
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Enhance and develop bilateral partnerships
and best practices in data collection and sharing
Wih boh he Unied Saes and China invesing heavily in he susainabiliy o
ocean indusries and marine scienific research, here is ample opporuniy or boh
naions o share heir discoveries and bes pracices. Te Unied Saes and Chinashould boh ake advanage o economies o scale and accelerae he rise o susain-
abiliy and undersanding o he value o marine naural resources. One area where
bilaeral cooperaion exiss and has been highly effecive is he parnership beween
he U.S. Coas Guard and is Chinese fishery enorcemen counerpars. Trough
his program, members o China’s Fisheries Law Enorcemen Command ride
aboard U.S. Coas Guard cuters operaing in he Pacific Ocean o assis in he batle
agains illegal, unrepored, and unregulaed fishing aciviy in inernaional waers.43
A specific issue ha appears ripe or cooperaion is oil spill response. Unorunaely,
boh China and he Unied Saes have suffered large-scale oil spills in recen years, which have resuled in large economic and environmenal losses. An EcoParnership
projecperhaps coupled wih a srucured inergovernmenal iniiaive beween
he U.S. Coas Guard and he Chinese Sae Oceanic Adminisraioncould help
boh counries develop more-effecive procedures o respond o oil spills and mini-
mize economic and environmenal harm. Regions where oil producion and impor
aciliies are concenraedsuch as he Liaoning, Shandong, and ianjin provinces
in China and exas and Louisiana in he Unied Saeswould be naural ocal
poins or an EcoParnership cenered on oil spill response.
Furhermore, boh counries should coninue o develop heir scienific ocean
observing capaciy hrough he deploymen o buoys, mobile insrumens, and sa-
ellies. As hese inegraed ocean observing sysems expand, a bilaeral agreemen
o share scienific daa and develop complemenary daa collecion and dissemina-
ion mehodologies would clearly benefi no jus he Unied Saes and China bu
also global undersanding o oceanographic condiions and he changing climae.
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Conclusion
Las all, when he Unied Saes and China finalized heir groundbreaking
agreemen on reducing carbon polluion and oher greenhouse gas emissions,44
i signaled Beijing’s openness o serious commimens on environmenal proec-
ion. Wih wo o he world’s larges economies commiting o serious, meaningul
acion o address climae change, he res o he world has an example o ollow.
Now, he wo naions have an opporuniy o build on ha cooperaion wih
uure agreemens on managemen o our plane’s hreaened marine ecosysems.
Our oceans hold vas economic developmen poenial, bu hey are also unda-
menal o mainaining human lie on his planeas moderaors o emperaure,
providers o nourishmen and energy, and as he source o more han hal he
oxygen we breahe. Forunaely or us, economic growh does no require environ-
menal degradaion. In ac, proecing ully uncioning marine ecosysems may
be he smares invesmen o capial ha we as a sociey can make.
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About the authors
Michael Conathan is he Direcor o Ocean Policy a he Cener or American
Progress, where his work ocuses on promoing viable policy soluions o improve
he managemen o America’s oceans and coass and he indusries and communi-
ies ha rely on hem.
Scott Moore is a Council on Foreign Relaions inernaional affairs ellow and a
poliical scienis who ocuses on environmenal policy and poliics in China.
Acknowledgments
Te auhors would like o hank Judy Kildow and Jason Scorse rom he Cener or
he Blue Economy a he Middlebury Insiue or Inernaional Sudies a Monerey,
as well as saff rom he Cener or American Progressincluding Melanie Har,Shiva Polefa, and Alexander Fieldsor heir conribuions o his repor.
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Endnotes
1 U.N. Population Fund, “World Population Trends,” avail-able at http://www.unfpa.org/world-population-trends (last accessed May 2015).
2 Xianyao Chen and Ka-Kit Tung, “Varying planetary heatsink led to global-warming slowdown and acceleration,”
Science, 345 (6199) (2014): 897–903, available at http://www.sciencemag.org/content/345/6199/897.
3 National Oceanic and Atmospheric Administration,“Marine organisms produce over half of the oxygenthat land animals need to breathe,” available at http://oceanexplorer.noaa.gov/facts/oceanproduction.html(last accessed April 2015).
4 Central Intelligence Agency, “The World Factbook:Country Comparison :: Population,” available at https://www.cia.gov/library/publications/the-world-factbook/rankorder/2119rank.html (last accessed May 2015).
5 National Oceanic and Atmospheric Administration, TheUnited States Is an Ocean Nation (U.S. Department ofCommerce, 2011), available at http://www.gc.noaa.gov/documents/2011/012711_gcil_maritime_eez_map.pdf .
6 U.N. Conference on Small Island Developing States,“SIDS Action Platform,” available at http://www.sids2014.org/index.php?page=view&type=13&nr=59&menu=1515 (last accessed April 2015).
7 U.N. Sustainable Development, “Blue Economy ConceptPaper” (2014), available at https://sustainabledevelop-ment.un.org/content/documents/2978BEconcept.pdf .
8 United Nations, “U.N. Convention on the Law of the Sea- Part V: Exclusive Economic Zone,” available at http://www.un.org/depts/los/convention_agreements/texts/unclos/part5.htm (last accessed May 2015).
9 John Lablache and Sharon Uranie, “Seychelles takingsteps to protect more marine areas of its oceanic zone,”Seychelles News Agency, June 11, 2014, available at http://www.seychellesnewsagency.com/articles/702/Seychelles+taking+steps+to+protect+more+marine+are
as+of+its+oceanic+zone.
10 Tania Branigan, “China takes environmental docu-mentary that went viral off the web,” The Guardian,March 6, 2015, available at http://www.theguardian.com/world/2015/mar/06/china-takes-environmental-documentary-off-the-web.
11 Colin Schultz, “China’s Massive Algae Bloom CouldLeave the Ocean Lifeless,” Smithsonian, July 5, 2013,available at http://www.smithsonianmag.com/smart-news/chinas-massive-algae-bloom-could-leave-the-oceans-water-lifeless-7262513/?no-ist.
12 State Oceanic Administration, “Marine EnvironmentBulletin,” March 21, 2014, available at http://www.soa.gov.cn/zwgk/hygb/zghyhjzlgb/hyhjzlgbml/2013nzghyhjzkgb_2484/201403/t20140321_31051.html.
13 Ying Yiyuan, “Overfishing depletes fish stocks in E.China Sea,” China National Television, May 31, 2013,available at http://english.cntv.cn/program/newsup-date/20130531/104071.shtml.
14 Cara Anna, “Large China oil spill threatens sea life,water,” San Francisco Chronicle, available at http://www.sfgate.com/world/article/Large-China-oil-spill-threat-ens-sea-life-water-3258484.php.
15 People’s Republic of China, “The 11th Five-Year Plan,”available at http://www.gov.cn/english/special/115y_index.htm (last accessed May 2015).
16 China Briefing, “China releases 12th Five-Year Plan forthe Marine Economy,” February 1, 2013, available at
http://www.china-briefing.com/news/2013/02/01/china-releases-12th-five-year-plan-for-the-marine-economy.html.
17 Ibid.
18 Ibid.
19 State Oceanic Administration, “National Marine Indus-trial Development Plan Highlights,” National MarineInformation Centre, May 12, 2008, available at http://www.cme.gov.cn/gh/2013/zx/3.html.
20 State Oceanic Administration, “National MarineFunctional Zoning Plan,” National Marine InformationCentre, March 2012, available at http://www.cme.gov.cn/gh/2013/zx/4.html.
21 China Briefing, “Qingdao’s Blue Economy: Marine invest-
ment on the rise,” June 12, 2014, available at http://www.china-briefing.com/news/2014/06/12/qingdaos-blue-economy-marine-investment-rise.html.
22 State Oceanic Administration, “2013 Annual NationalMarine Economic Statistics Report” (2014), available athttp://www.soa.gov.cn/zwgk/hygb/zghyjjtjgb/201403/t20140311_30836.html.
23 Ibid.
24 Hao Nan, “Declaration lays foundations for buildingthe blue economy,” State Oceanic AdministrationPeople’s Republic Of China, September 29, 2014,available at http://www.soa.gov.cn/english/201409/t20140929_33701.html.
25 Judy Kildow and others, “State of the U.S. Ocean andCoastal Economies 2014” (Monterey, CA: National
Ocean Economics Program, 2014), p. 8, available athttp://cbe.miis.edu/noep_publications/1/.
26 Ibid.
27 National Oceanic and Atmospheric Administration, Na-tional Coastal Population Report: Population Trends from1970 to 2020 (U.S. Department of Commerce, 2013),available at http://stateofthecoast.noaa.gov/features/coastal-population-report.pdf .
28 Bureau of Ocean Energy Management, Alaska OuterContinental Shelf: Chukchi Sea Planning Area, Oil and GasLease Sale 193, In the Chukchi Sea, Alaska; Final SecondSupplemental Environmental Impact Statement: Vol. 1,Chapters 1-7 (U.S. Department of the In terior, 2015),p. 156, available at http://w ww.boem.gov/upload-edFiles/BOEM/About_BOEM/BOEM_Regions/Alas-ka_Region/Leasing_and_Plans/Leasing/Lease_Sales/
Sale_193/2015_0127_LS193_Final_2nd_SEIS_Vol1.pdf .
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nprogress.org/issues/green/report/2012/02/03/11104/putting-a-freeze-on-arctic-ocean-drilling/https://www.americanprogress.org/issues/green/report/2012/02/03/11104/putting-a-freeze-on-arctic-ocean-drilling/https://www.americanprogress.org/issues/green/report/2012/02/03/11104/putting-a-freeze-on-arctic-ocean-drilling/https://www.americanprogress.org/issues/green/report/2012/02/03/11104/putting-a-freeze-on-arctic-ocean-drilling/https://www.americanprogress.org/issues/green/report/2012/02/03/11104/putting-a-freeze-on-arctic-ocean-drilling/http://www.boem.gov/uploadedFiles/BOEM/About_BOEM/BOEM_Regions/Alaska_Region/Leasing_and_Plans/Leasing/Lease_Sales/Sale_193/2015_0127_LS193_Final_2nd_SEIS_Vol1.pdfhttp://www.boem.gov/uploadedFiles/BOEM/About_BOEM/BOEM_Regions/Alaska_Region/Leasing_and_Plans/Leasing/Lease_Sales/Sale_193/2015_0127_LS193_Final_2nd_SEIS_Vol1.pdfhttp://www.boem.gov/uploadedFiles/BOEM/About_BOEM/BOEM_Regions/Alaska_Region/Leasing_and_Plans/Leasing/Lease_Sales/Sale_193/2015_0127_LS193_Final_2nd_SEIS_Vol1.pdfhttp://www.boem.gov/uploadedFiles/BOEM/About_BOEM/BOEM_Regions/Alaska_Region/Leasing_and_Plans/Leasing/Lease_Sales/Sale_193/2015_0127_LS193_Final_2nd_SEIS_Vol1.pdfhttp://stateofthecoast.noaa.gov/features/coastal-population-report.pdfhttp://stateofthecoast.noaa.gov/features/coastal-population-report.pdfhttp://cbe.miis.edu/noep_publications/1/http://www.soa.gov.cn/english/201409/t20140929_33701.htmlhttp://www.soa.gov.cn/english/201409/t20140929_33701.htmlhttp://www.soa.gov.cn/zwgk/hygb/zghyjjtjgb/201403/t20140311_30836.htmlhttp://www.soa.gov.cn/zwgk/hygb/zghyjjtjgb/201403/t20140311_30836.htmlhttp://www.china-briefing.com/news/2014/06/12/qingdaos-blue-economy-marine-investment-rise.htmlhttp://www.china-briefing.com/news/2014/06/12/qingdaos-blue-economy-marine-investment-rise.htmlhttp://www.china-briefing.com/news/2014/06/12/qingdaos-blue-economy-marine-investment-rise.htmlhttp://www.cme.gov.cn/gh/2013/zx/4.htmlhttp://www.cme.gov.cn/gh/2013/zx/4.htmlhttp://www.cme.gov.cn/gh/2013/zx/3.htmlhttp://www.cme.gov.cn/gh/2013/zx/3.htmlhttp://www.china-briefing.com/news/2013/02/01/china-releases-12th-five-year-plan-for-the-marine-economy.htmlhttp://www.china-briefing.com/news/2013/02/01/china-releases-12th-five-year-plan-for-the-marine-economy.htmlhttp://www.china-briefing.com/news/2013/02/01/china-releases-12th-five-year-plan-for-the-marine-economy.htmlhttp://www.gov.cn/english/special/115y_index.htmhttp://www.gov.cn/english/special/115y_index.htmhttp://www.sfgate.com/world/article/Large-China-oil-spill-threatens-sea-life-water-3258484.phphttp://www.sfgate.com/world/article/Large-China-oil-spill-threatens-sea-life-water-3258484.phphttp://www.sfgate.com/world/article/Large-China-oil-spill-threatens-sea-life-water-3258484.phphttp://english.cntv.cn/program/newsupdate/20130531/104071.shtmlhttp://english.cntv.cn/program/newsupdate/20130531/104071.shtmlhttp://www.soa.gov.cn/zwgk/hygb/zghyhjzlgb/hyhjzlgbml/2013nzghyhjzkgb_2484/201403/t20140321_31051.htmlhttp://www.soa.gov.cn/zwgk/hygb/zghyhjzlgb/hyhjzlgbml/2013nzghyhjzkgb_2484/201403/t20140321_31051.htmlhttp://www.soa.gov.cn/zwgk/hygb/zghyhjzlgb/hyhjzlgbml/2013nzghyhjzkgb_2484/201403/t20140321_31051.htmlhttp://www.smithsonianmag.com/smart-news/chinas-massive-algae-bloom-could-leave-the-oceans-water-lifeless-7262513/?no-isthttp://www.smithsonianmag.com/smart-news/chinas-massive-algae-bloom-could-leave-the-oceans-water-lifeless-7262513/?no-isthttp://www.smithsonianmag.com/smart-news/chinas-massive-algae-bloom-could-leave-the-oceans-water-lifeless-7262513/?no-isthttp://www.theguardian.com/world/2015/mar/06/china-takes-environmental-documentary-off-the-webhttp://www.theguardian.com/world/2015/mar/06/china-takes-environmental-documentary-off-the-webhttp://www.theguardian.com/world/2015/mar/06/china-takes-environmental-documentary-off-the-webhttp://www.seychellesnewsagency.com/articles/702/Seychelles+taking+steps+to+protect+more+marine+areas+of+its+oceanic+zonehttp://www.seychellesnewsagency.com/articles/702/Seychelles+taking+steps+to+protect+more+marine+areas+of+its+oceanic+zonehttp://www.seychellesnewsagency.com/articles/702/Seychelles+taking+steps+to+protect+more+marine+areas+of+its+oceanic+zonehttp://www.un.org/depts/los/convention_agreements/texts/unclos/part5.htmhttp://www.un.org/depts/los/convention_agreements/texts/unclos/part5.htmhttp://www.un.org/depts/los/convention_agreements/texts/unclos/part5.htmhttps://sustainabledevelopment.un.org/content/documents/2978BEconcept.pdfhttps://sustainabledevelopment.un.org/content/documents/2978BEconcept.pdfhttp://www.sids2014.org/index.php?page=view&type=13&nr=59&menu=1515http://www.sids2014.org/index.php?page=view&type=13&nr=59&menu=1515http://www.sids2014.org/index.php?page=view&type=13&nr=59&menu=1515http://www.gc.noaa.gov/documents/2011/012711_gcil_maritime_eez_map.pdfhttp://www.gc.noaa.gov/documents/2011/012711_gcil_maritime_eez_map.pdfhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2119rank.htmlhttp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30 National Oceanic and Atmospheric Administration,“NOAA-supported scientists find large Gulf dead zone,but smaller than predicted,” July 29, 2013, available athttp://www.noaanews.noaa.gov/stories2013/2013029_deadzone.html.
31 Jane Lubchenco, “The Blue Economy: Understandingthe Ocean’s Role in the Nation’s Future,” Remarks deliv-ered at Capitol Hill Ocean Week, June 9, 2009, availableat http://www.pco.noaa.gov/documents/administra-tionRemarks/60909_Lubchenco_CHOW.pdf .
32 Michael Conathan, Jeffrey Buchanan, and Shiva Polefka,“The Economic Case for Restoring Coastal Ecosystems”(Washington: Center for American Progress, 2014),available at https://www.americanprogress.org/issues/green/report/2014/04/09/87386/the-economic-case-for-restoring-coastal-ecosystems/.
33 National Oce an Economics Program, “About NOEP,”available at http://www.oceaneconomics.org/ (lastaccessed April 2015).
34 Kildow and others, “State of the U.S. Ocean and CoastalEconomies 2014.”
35 Kiley Kroh and Michael Conathan, “The Lasting Impactof Deepwater Horizon,” Center for American Progress,April 19, 2012, available at https://www.american-progress.org/issues/green/news/2012/04/19/11409/the-lasting-impact-of-deepwater-horizon/.
36 U. Rashid Sumaila and others, “Impact of the DeepwaterHorizon well blowout on the economics of US Gulf fish-eries,” Canadian Journal of Fisheries and Aquatic Sciences 69 (3) (2012): 499–510.
37 Michael Conathan and Kiley Kroh, “The Foundationsof a Blue Economy” (Washington: Center for AmericanProgress, 2012), available at https://www.american-progress.org/issues/green/report/2012/06/27/11794/the-foundations-of-a-blue-economy/.
38 China Briefing, “Qingdao’s Blue Economy: Marine invest-ment on the rise.”
39 San Diego Workforce Partnership, San Diego RegionalEconomic Development Corporation, and The MaritimeAlliance, “San Diego Maritime Industry Report 2012”(2012), available at http://themaritimealliance.org/pdf/SanDiegoMaritimeClusterAnalysis2012.pdf.
40 The White House, “Executive Order 13547—Steward-ship of the Ocean, Our Coasts, and the Great Lakes,”Press release, July 19, 2010, available at http://www.
whitehouse.gov/the-press-office/executive-order-stewardship-ocean-our-coasts-and-great-lakes.
41 National Ocean Council, “National Ocean PolicyImplementation Plan” (2013), available at http://www.whitehouse.gov/administration/eop/oceans/imple-mentationplan.
42 Caribbean Regional Ocean Partnership, “Home,” avail-able at http://caribbean-mp.org/en/ (last accessed April2015).
43 NOAA Fisheries, Memorandum of UnderstandingBetween the Government of the United States of Americaand the Government of the People’s Republic of Chinaon Effective Cooperation and Implementation of UnitedNations General Assembly Resolution 46/215 of December20, 1991 (U.S. Department of Commerce, 1993), avail-able at http://www.nmfs.noaa.gov/ia/agreements/
bilateral_arrangements/chinabilat.pdf .
44 The White House, “U.S.-China Joint Announcement onClimate Change,” Press release, November 12, 2014,available at https://www.whitehouse.gov/the-press-office/2014/11/11/us-china-joint-announcement-climate-change.
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