By Sam Hopkins | Thursday, September 4th, 2008

Chinese leaders can finally breathe, now that the Olympics have gone by with relatively little trouble and more blue skies than many observers anticipated. Yet there is plenty of work to be done, and tons of money to be made in Chinese renewable energy.

This week, U.S. trade officials estimated the value of China's clean technology market at $186 billion by 2010, soaring up to over half a trillion dollars by 2020.

Why such whopping estimates?

Well, after the athletes headed home, on August 29 the Communist Party leadership in Beijing passed what's known as the Circular Economy Law, which will stimulate national cleantech spending through efficiency and emissions regulations.

The essence of the Circular Economy Law is very simple and familiar to green enthusiasts around the globe: Reduce, Reuse, Recycle.

But energy progress isn't just something you can legislate. As we've learned the hard way here in the U.S., the greening of our economy requires cultural change and economic oomph behind it.

The Circular Economy Law (C.E.L.) had been in the works for over a year, and after it takes effect on Jan. 1, 2009, the C.E.L. should set the country on a more sustainable path towards national wealth and power.

China can't do that alone. So China and the U.S. inked a decade-long energy and environment cooperation agreement back in June, including American firms in the circular, sustainable economy that is developing.