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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001010549-08-000146.txt : 20080811
<SEC-HEADER>0001010549-08-000146.hdr.sgml : 20080811
<ACCEPTANCE-DATETIME>20080306165949
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001010549-08-000146
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080306

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA RECYCLING ENERGY CORP
		CENTRAL INDEX KEY:			0000721693
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				900093373
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 909, TOWER B, CHANG AN INTL BLDG
		STREET 2:		NO. 88 NAN GUAN ZHENG XIE
		CITY:			XI AN CITY, SHAN XI PROVINCE
		STATE:			F4
		ZIP:			710068
		BUSINESS PHONE:		86-29-8765-1096

	MAIL ADDRESS:	
		STREET 1:		SUITE 909, TOWER B, CHANG AN INTL BLDG
		STREET 2:		NO. 88 NAN GUAN ZHENG XIE
		CITY:			XI AN CITY, SHAN XI PROVINCE
		STATE:			F4
		ZIP:			710068

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHINA DIGITAL WIRELESS INC
		DATE OF NAME CHANGE:	20040810

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BOULDER ACQUISITIONS  INC
		DATE OF NAME CHANGE:	20020430

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BOULDER BREWING CO
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<font FACE="Times New Roman"><i>
<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" size="5">
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</i>
<p align="justify"><font size="2">Linda van Doorn <br>
Jorge Bonilla <br>
Securities and Exchange Commission <br>
Division of Corporation Finance <br>
Mail Stop 4561 <br>
450 Fifth Street, N.W. <br>
Washington, D.C. 20549 </font></p>
<p align="justify" style="margin-bottom: 0"><font size="2">RE: </font></p>
<p align="justify" style="margin-left: 30; margin-top: -11pt"><u><font size="2">
Form 10-KSB for the year ended December 31, 2006 <br>
Forms 10-QSB for the quarters ended March 31,2007, June 30,2007 and September
30,2007 </font></u></p>
<p align="justify"><font size="2">Date: February 4, 2008 </font></p>
<p align="justify"><font size="2">Dear Ladies and Gentlemen, </font></p>
<p align="justify"><font size="2">On behalf of China Recycling Energy
Corporation (the &quot;Company&quot;), in connection with the above referenced reports, we
are hereby providing you the following responses to the comments in your letter
dated January 15, 2008: </font></p>
<p align="justify"><u><font size="2">Form 10-KSB </font></u></p>
<p align="justify"><u><font size="2">Financial Statements <br>
Note 4 - Impairment Write Down Recognized As A Result Of Strategic Review of
Certain Operations, page 9 </font></u></p>
<b>
<p align="justify"><font size="2">Comment: </font></p>
</b>
<p align="justify"><font size="2">1. We have read and considered your response
to comment three. Please revise your statement of operations to reflect the
impairment loss on property and equipment and deposit for business acquisition
as a charge to earnings in accordance with paragraph 25 of SFAS 144. Also,
please note that paragraph 15 of SFAS 5, which was cited in support for your
accounting treatment, prohibits charging costs or losses to an appropriation of
retained earnings. </font></p>
<b>
<p align="justify"><font size="2">Response:</font></b><font size="2"> </font>
</p>
<p ALIGN="JUSTIFY"><font size="2">The financial statements for 2006 were
restated to reflect the impairment loss on property and equipment and deposit
for business acquisition as a charge to earnings in accordance with paragraph 25
of SFAS 144. </font></p>
<p align="justify"><u><font size="2">Forms 10-QSB for the quarters ended March
31,2007, June 30,2007 and September 30, 2007 <br>
Financial Statements <br>
Condensed Consolidated Balance Sheet </font></u></p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'>
<font FACE="Times New Roman"><b>
<p align="justify"><font size="2">Comment: </font></p>
</b>
<p align="justify"><font size="2">2. We have read and considered your response
to comment six relating to the amount reported as &quot;Due from a third party.&quot; We
noted this amount is trade related, due from a single debtor, unsecured and it
relates to the mobile phone distribution business that you discontinued in May
2007. Also, it appears it remained uncollected as of September 30, 2007. Please
explain to us how you determined that the collection of this receivable was
reasonably assured and accordingly, no allowance was necessary as of September
30, 2007. </font></p>
<b>
<p align="justify"><font size="2">Response: </font></p>
</b>
<p align="justify"><font size="2">1. We have reached a settlement agreement with
Shanghai Sifang Information Technology Co. and a copy of such is enclosed in
Appendix 1 for your reference. </font></p>
<b>
<p align="justify"><font size="2">Comment: </font></p>
</b>
<p align="justify"><font size="2">3. Also, explain to us how you evaluated the
risks due to this substantial asset concentration, and how you considered
providing audited financial statements of the debtor for an investor's financial
assessment of the Company. </font></p>
<b>
<p align="justify"><font size="2">Response: </font></p>
</b>
<p align="justify"><font size="2">We fully aware of the weighting of this &quot;due
from a third party&quot; in the overall balance sheet and we have done the followings
to procure its settlement: </font></p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td WIDTH="6%" align="center"><font FACE="Times New Roman PSMT" size="2">a)</font></td>
    <td WIDTH="94%"><font FACE="Times New Roman PSMT" size="2">we ring their
    accounts department every week to urge for the settlement;</font></td>
  </tr>
  <tr>
    <td WIDTH="6%" align="center"><font FACE="Times New Roman PSMT" size="2">b)</font></td>
    <td WIDTH="94%"><font FACE="Times New Roman PSMT" size="2">we reach a
    settlement agreement with them</font></td>
  </tr>
</table>
<p align="justify"><font size="2">Shanghai Sifang Information Technology Co. is
not a public company and we are not assessable to their financial data. Should
they fail to follow the settlement agreement, we will take proper legal action
against them. </font></p>
<p align="justify"><font size="2">If you have any questions or comments
regarding the foregoing, please do not hesitate to contact me at telephone:
011-86-29-87651098 or fax: 011-86-29-87651099. </font></p>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
  <tr>
    <td width="177"><font FACE="Times New Roman PSMT" size="2">
    <p align="center">/s/ Guangyu Wu</font></td>
    <td width="1064">&nbsp;</td>
  </tr>
  <tr>
    <td width="177">
    <p align="center"><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </font></u></td>
    <td width="1064">&nbsp;</td>
  </tr>
  <tr>
    <td width="177"><font FACE="Times New Roman PSMT" size="2">
    <p align="center">Guangyu Wu</font></td>
    <td width="1064">&nbsp;</td>
  </tr>
</table>
<p align="justify"><font size="2">Chief Executive Officer <br>
China Recycling Energy Corporation </font></p>
</font><hr color="#000000" size="5">

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