China is doubling its wind-power capacity every year and will lead the world within two years for wind-power generation if it continues at its current pace, said Lee. That could provide opportunities for Western wind-turbine manufacturers like General Electric. But it also could be a sign that China’s homegrown wind-turbine makers will grow into giants capable of taking on Western companies.

“Wind will not only have an export market, but also a domestic market,” said Lee.

So does all of this mean that China, not the U.S., is destined to grow a green economy and profit from it?

Tom Friedman of the New York Times calls this a Sputnik moment, one in which the U.S. better get on the innovation bandwagon or be left behind by China. “You will not just be buying your toys from China. You will buy your next electric car, solar panels, batteries, and energy-efficiency software from China,” he writes.

Well, maybe not, said Barbara Finamore, the founder and director of the Natural Resources Defense Council’s China program. The U.S. could have a technological edge in the arena, while China has the edge in cheap manufacturing.

“The U.S. has the capability for innovation that’s much deeper than China. But China has the advantage in low-cost manufacturing,” she said. And that’s not necessarily a bad thing, because it will drive the price of green technology down. “It’s the China price that’s going to bring down the cost for everybody,” she said.

And, she points out, the U.S. is still spending more public and private dollars on creating a green economy.

“Last year, although China…nearly doubled renewable investment, the U.S. was the world leader in investment,” she said. “It’s a benefit for U.S. businesses that China is developing.”

And there is opportunity for companies in the two countries to work together on research and development projects, especially surrounding the key technology of batteries that can do everything from storing wind power when the wind isn’t blowing to running cars.

Already, the U.S. and Chinese governments have announced joint research and development on building efficiency technology and technology for capturing and storing underground carbon dioxide emitted in industrial processes and coal-burning power stations.

Duke Energy, one of the largest U.S. utility companies, has signed deals with two Chinese energy companies this summer to work on developing sources of low-carbon energy. Commercial solar projects, coal-based clean energy, biofuels, natural gas, smart grid, energy efficiency, and carbon-capturing algae are all on the table for Duke’s research and development deals with ENN Group and state-owned China Huaneng Group, the country’s biggest utility.

“We don’t intend to have assets in China,” said Tom Williams, director of external relations for Duke. “We intend to work with them on technology. I think they’re certainly a leader, and we want to be a leader with them.”

But while the message of cooperation is reassuring, there’s also going to be plenty of competition.

Chinese carmaker, BYD, which started as a battery company that has moved into autos, plans to take on the likes of Nissan, General Motors, and Toyota in the race to bring hybrid and electric cars to the masses. That company’s leader, Wang Chuanfu, is now China’s richest man, thanks to the fact that Warren Buffett’s Berkshire Hathaway has bought 10 percent of his company.

And BYD isn’t thinking small. The company plans to bring an electric car to market in the U.S. by 2010, just as GM is unveiling its electric offering, the Chevy Volt. It plans to be China’s largest carmaker by 2015, and the world’s largest by 2025.

That kind of ambition is something the U.S. will face from China in the renewable space, as it has in manufacturing.

“They’re moving at China time,” said Williams. “When they set their mind to something, they’re getting it done.”