China is the fastest growing economy in the world and by 2030 could account for half of the world's CO2 emissions. It has recently set out ambitious plans to reduce the carbon intensity of its economy, boost green energy, draft a new climate law and introduce carbon trading. MPs say that this is the ideal time for the UK to work together with China; both to prepare the ground for a future international agreement and to secure potential opportunities for British businesses in China's burgeoning markets for low-carbon technologies (currently worth around £430 billion). The report warns, however, that the Government's work in China suffers from a lack of strategic direction. There are too many small projects, focused on too many different areas, rather than a coordinated effort to achieve key objectives tailored to appeal to Chinese priorities and which build on UK strengths. For policy, this means a focus on carbon pricing and accounting, where the UK has experience to offer. In the business area this mean identifying the potential markets and technologies in which the UK could have a comparative advantage. One area in which the UK could establish a comparative advantage with the right Government support is carbon, capture and storage (CCS) technology which could be a substantial export earner if the UK is able to develop CCS expertise early. The UK's ability to influence policy in China and to compete for business in low-carbon development depends on the reputation of the UK as a credible leader