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Boeing, GE sign $2 billion deal with China
Washington, Nov 13: Boeing and the aircraft engine unit of General Electric signed agreements on Wednesday to sell up to USD 1.7 billion in planes and engines to five Chinese airlines in 2005 and 2006.
Washington, Nov 13: Boeing and the aircraft engine unit of General Electric signed agreements on Wednesday to sell up to USD 1.7 billion in planes and engines to five Chinese airlines in 2005 and 2006.
US Commerce Secretary Don Evans presided over a ceremony in Washington to mark the deal for 30 Boeing 737s that officials say will help narrow the growing trade gap between the United States and China.
Additionally, China signed a deal to have GE supply jet engines for its regional jet programme which is still under development. GE says the agreement could be worth up to $3 billion over 20 years.
The US trade deficit with China is expected to reach a record $120 billion this year, prompting criticism from some US manufacturers, the Bush administration and Congress that the lopsided relationship is hurting American industry and costing jobs.
In Beijing last month, Evans said he received assurances from the Chinese government that it would try to narrow the surplus. And he called Wednesday's agreements a good sign that China wants to build a stronger commercial relationship.
"These multibillion-dollar contracts are a big victory for Boeing and GE," Evans said. They will generate corporate revenue. They will support high tech manufacturers and generate thousands of jobs."
Zhang Guobao, vice minister of China's development and reform commission, said the deals with Boeing and GE were the start of a multi-industry purchasing spree in the United States that will also include agricultural products, autos and auto components.
Despite his country's trade surplus with the United States, he said China was still an enormously fertile ground for US exports. He said the two sides should consider how to expand cooperation.
The agreements represent a win for Boeing in the growing Chinese aviation market after European rival Airbus also signed a 30-plane deal with China in April.
"The Chinese aviation industry is the fastest growing market in the world," Zhang said. "Adding these 737 airplanes to our current fleet of 672 will help Chinese airlines meet their rapidly growing networks and accommodate rising demand from our passengers."
Bureau Report
Additionally, China signed a deal to have GE supply jet engines for its regional jet programme which is still under development. GE says the agreement could be worth up to $3 billion over 20 years.
The US trade deficit with China is expected to reach a record $120 billion this year, prompting criticism from some US manufacturers, the Bush administration and Congress that the lopsided relationship is hurting American industry and costing jobs.
In Beijing last month, Evans said he received assurances from the Chinese government that it would try to narrow the surplus. And he called Wednesday's agreements a good sign that China wants to build a stronger commercial relationship.
"These multibillion-dollar contracts are a big victory for Boeing and GE," Evans said. They will generate corporate revenue. They will support high tech manufacturers and generate thousands of jobs."
Zhang Guobao, vice minister of China's development and reform commission, said the deals with Boeing and GE were the start of a multi-industry purchasing spree in the United States that will also include agricultural products, autos and auto components.
Despite his country's trade surplus with the United States, he said China was still an enormously fertile ground for US exports. He said the two sides should consider how to expand cooperation.
The agreements represent a win for Boeing in the growing Chinese aviation market after European rival Airbus also signed a 30-plane deal with China in April.
"The Chinese aviation industry is the fastest growing market in the world," Zhang said. "Adding these 737 airplanes to our current fleet of 672 will help Chinese airlines meet their rapidly growing networks and accommodate rising demand from our passengers."
Bureau Report