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<SEC-DOCUMENT>0001010549-08-000507.txt : 20080811
<SEC-HEADER>0001010549-08-000507.hdr.sgml : 20080811
<ACCEPTANCE-DATETIME>20080616152826
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001010549-08-000507
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080616

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
<TEXT>
<html>

<head>
<title>China Recycling Energy Corporation - Correspondence</title>
</head>

<body>

<div style="border-top-style: solid; border-top-width: 1; padding-top: 1">
  <hr color="#000000" SIZE="5">
</div>
<font FACE="Times New Roman">
<p><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>
<b>
<p><font size="2">RE: </font></p>
<p style="margin-left: 7%; margin-top: -25.8pt"><u><font size="2">China
Recycling Energy Corporation <br>
File No. 000-12536 <br>
Form 10-KSB/A-2 for the year ended December 31, 2006 filed March 6, 2008 <br>
Forms 10-QSB for the quarters ended March 31, 2007, June 30, 2007 and September
30, 2007</font></u></b><u><font size="2"> </font></u></p>
<p><font size="2">Date: June 16, 2008 </font></p>
<p><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 March 11, 2008: </font></p>
<b>
<p><font size="2">Comment: </font></p>
</b>
<p><u><font size="2">Form 10-KSB/A2 <br>
Item 8A Controls and Procedures, page 45 </font></u></p>
<p align="justify"><font size="2">1. Your response to our prior comment two does
not address our request for revision of Item 8A. As previously requested, please
revise your disclosures in Item 8A on page 45 to describe the effect of the
restatement on your officers' conclusions regarding the effectiveness of the
company's disclosure controls and procedures. </font></p>
<b>
<p><font size="2">Response: </font></p>
</b>
<p align="justify"><font size="2">As to the effectiveness of our disclosure
controls and procedures, we concluded that they were not effective as of
December 31, 2006. We have revised the Form 10-KSB to effect of the restatement
on our officers' conclusions regarding the effectiveness of the company's
disclosure controls and procedures. Please see the Form 10-KSB/A-4 filed on June
13, 2008 for details. </font></p>
</font><font FACE="Times New Roman" size="2"><b><hr color="#000000" SIZE="5"><p Style='page-break-before:always'>
</b></font><font FACE="Times New Roman"><font FACE="Times New Roman" size="2">
<b>
<p>Comment: </p>
</b></font>
<p><u><font size="2">Financial Statements <br>
Report of Independent Registered Public Accounting Firm, page F-2 </font></u>
</p>
<p><font size="2">2. Please have your accountants revise their report to
indicate the exact date of their report as it relates to the restatement. </font>
</p>
<b>
<p><font size="2">Response: </font></p>
</b>
<p align="justify"><font size="2">The accountants have revised their report to
indicate the exact date of their report as it relates to the restatement. Please
see the Form 10-KSB/A-4 filed on June 13, 2008 for details. </font></p>
<p align="justify"><font size="2">3. We noted the date of the restatement
disclosed in your Item 4.02 Form 8-K is inconsistent with the date of the
restatement disclosed in your accountants report included in the Form
10-KSB/A-2. Please revise as appropriate to clarify this conflict. </font></p>
<b>
<p><font size="2">Response: </font></p>
</b>
<p><font size="2">We have corrected the inconsistence in the Form 8-K/A filed on
March 17, 2008. </font></p>
<p><u><font size="2">Certifications </font></u></p>
<b>
<p><font size="2">Comment: </font></p>
</b>
<p align="justify"><font size="2">4. Please include your Chief Executive Officer
Certification, Exhibit 3 1.1, pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002. </font></p>
<b>
<p><font size="2">Response: </font></p>
</b>
<p align="justify"><font size="2">We have included our Chief Executive Officer's
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Please
see the Form 10KSB/A-4 filed on June 13, 2008. </font></p>
<b>
<p><font size="2">Comment: </font></p>
</b>
<p align="justify"><font size="2">5. Please refer to Exhibit 3 1.2, the
certification of your Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002. We noted that the identification of the certifying
individual at the beginning of the certification required by Exchange Act Rule
13a-14(a) also includes the title of the certifying individual. Considering that
the certifications must be signed in a personal capacity, please confirm to us
that your officer signed such certification in a personal capacity and revise
your certification to exclude the title of the certifying individual from the
opening sentence. </font></p>
</font><hr color="#000000" SIZE="5"><p Style='page-break-before:always'><font FACE="Times New Roman" size="2"><b>
<p>Response: </p>
</b></font><font FACE="Times New Roman">
<p ALIGN="JUSTIFY"><font size="2">We confirm that our officers have signed the
certifications in personal capacity and we have revised the certifications to
exclude the title of the certifying individuals from the opening sentence.
Please see the Form 10-KSB/A-4 filed on June 13, 2008. </font></p>
<b>
<p><font size="2">Comment: </font></p>
</b>
<p align="justify"><font size="2">6. Please revise the date of your Section 302
and Section 902 certifications as well as the date in the signature section on
page 55 consistent with the filing date of the Form 10-KSB/A. </font></p>
<b>
<p><font size="2">Response: </font></p>
</b>
<p ALIGN="JUSTIFY"><font size="2">We are aware of inconsistence between the date
of Section 302 and Section 902 certifications and the filing date of our Form
10-KSB/A. We have corrected the inconsistence in the Form 10-KSB/A-4 filed on
June 13, 2008. </font></p>
<p><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>
<b>
<p><font size="2">Comment: </font></p>
</b>
<p align="justify"><font size="2">7. We have read and considered your response
to comments six relating to the amount reported as &quot;Due from a third party.&quot;
Consistent with your response, please revise the filing to disclose how you
assessed the debtor's financial ability to pay this receivable and your
determination that no loss accrual is needed. </font></p>
<b>
<p><font size="2">Response: </font></p>
</b>
<p align="justify"><font size="2">We have restated our financial statements for
year ended December 31, 2006 in our Form 10KSB for year 2007 and Form 10QSB/A
for quarter ended March 31, 2007, June 30, 2007 and September 30, 2007. In the
restatements, we concluded that we had no adequate basis to assess the financial
ability of the debtor to pay back the account receivable. Therefore, we wrote
off and eliminate those account receivables in our Form 10KSB for year 2007 and
Form 10QSB/A for quarter ended March 31, 2007, June 30, 2007 and September 30,
2007. </font></p>
</font><hr color="#000000" SIZE="5"><p Style='page-break-before:always'><font FACE="Times New Roman"><b>
<p align="center"><font size="2">Acknowledgement Statement </font></p>
</b>
<p><font size="2">In connection to responding to all the comments of the
Securities and Exchange Commission, China Recycling Energy Corporation
(&quot;Company&quot;) hereby acknowledges that: </font></p>
<p><font size="2">1. The Company is responsible for the adequacy and accuracy of
the disclosure in the filings; </font></p>
<p><font size="2">2. Staff comments or changes to disclosure in response to
staff comments do not foreclose the Commission from taking any action with
respect to the filings; and </font></p>
<p><font size="2">3. The Company may not assert Staff comments as a defense in
any proceeding initiated by the Commission or any person under the federal
securities laws of the United States. </font></p>
<p><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>
<p><font size="2">/s/ Guangyu Wu <br>
_________________________ <br>
Guangyu Wu <br>
Chief Executive Officer <br>
China Recycling Energy Corporation </font></p>
<hr color="#000000" SIZE="5"></font>

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