China to ink $15b trade deals with US
Beijing, April 7:
China could sign up to $15 billion in trade contracts with the United States as part of a buying spree ahead of Chinese President Hu Jintao’s visit this month, state press reported on Friday.
A Chinese trade delegation headed by vice-premier Wu Yi that left for the United States on Monday has already signed four billion dollars worth of deals, including with US icons Microsoft and Ford, the Chine Business News reported.
Many more contracts are expected to be signed in the lead up to and during Hu’s visit, with potential airplane purchases from Boeing. “If the contracts with Boeing are signed as planned then the total purchase orders will amount to around 15 billion dollars,” the China Business News reported, citing Zhou Xiaomei, the Chinese consulate spokeswoman in Los Angeles.
Hu is expected to hold a summit with US President George Bush during an April 18-22 visit to the United States that will include a stop over in Seattle, where Boeing planes are manufactured.
Separate Chinese press reports said that Beijing was in talks to purchase up to 80 Boeing aircraft. It was not clear whether the purchases had been previously announced or were an entirely new order. China signed a deal for 70 Boeing 737s worth four billion dollars during US President George W Bush’s visit to Beijing in November.
Wu’s trade delegation, which includes about 200 Chinese businessmen representing 110 enterprises, would sign contracts with a vast array of US companies, China’s foreign ministry said this week.
“They will buy many products including agriculture products, airplanes, software, auto parts, electronic products, telecommunications products,” ministry spokesman Liu Jianchao said on Thursday.
The buying spree is being seen as a bid by Beijing to placate US concerns over the huge US trade deficit with China, which last year hit a record $202 billion, according to US government figures.
Washington has maintained steady pressure on China in the lead up to Hu’s visit on trade issues such as market access, intellectual property rights protection and Beijing’s alleged efforts to keep its currency undervalued.
Wu, one of China’s most experienced trade negotiatiors, sought to play down the tensions while at a signing ceremony in Los Angeles on Thursday.
“The friction in Sino-US trade relations is normal,” the China News Service quoted Wu as saying. “Both sides must remain sincere and face up to the contradictions, and as long as we remain objective and maintain the spirit of consultations on an equal footing we can positively resolve the problems.” Wu’s delegation signed 27 contracts in Los Angeles, according to state press reports.
They include a one-billion-dollar deal with electronics service provider Flextronics and a software contract worth $300 million with Qualcomm Inc, the China Businsess Times said.