US companies yesterday signed major deals with Chinese firms
ahead of a high-level Sino-US strategic economic dialogue that
starts today in Beijing.
The agreements, ranging from high-tech products to retail, are
expected to boost US exports to China, which grew 23 percent
year-on-year in the first 11 months.
The deals were signed at a ceremony attended by US Commerce
Secretary Carlos Gutierrez. They include:
US retailer Home Depot Inc will buy a chain of 12 Chinese home-
improvement stores. The value of Atlanta-based company's purchase
of The Home Way was not announced, but earlier reports put it at
US$100 million.
GE Aviation will provide engines and maintenance services worth
US$550 million to Shanghai Airlines.
The engines are for nine Boeing 787 Dreamliner aircraft ordered
by the airline. The engines are valued at US$300 million and the
additional follow-on service contract is worth US$250 million.
Oshkosh Truck Corp will sell US-made airport rescue and
firefighting equipment to Quzhou Airport in east China's Zhejiang
Province.
"This is an important business opportunity for Oshkosh as we
work to expand our presence, service and sales in the China market
for airport and municipal apparatus," said Michael Crowe, Oshkosh
president of Asia Operations.
VeriSign and China Netcom Group and the Ministry of Information
Industry will set up a system to help create domain names.
The system is expected to help improve response time and
reliability for Internet users in China.
"Commercial engagement built on fair, effective rules is the
foundation of the healthy, strong and continually growing trade
relationship that we envision between China and the United States,"
Gutierrez said.
Yi Xiaozhun, vice-minister of commerce, said: "The scope of
Sino-US economic exchanges has expanded to every sector of the
economy from only trade."
For the United States, he added, China has become one of the
fastest-growing export destinations and one of the largest
destinations of foreign investment.
Gutierrez said he hoped that more US products will "soon be
recognized" in China; and pushed Beijing to do more in economic
reforms and protection of intellectual property rights.
"Our economic relationship will be strengthened by market forces
that foster competition and adherence to the rule of law," he
said.
The signings were built upon last month's trade mission that
Gutierrez led to China with 25 US companies to explore commercial
opportunities. Three of the four US companies that signed
agreements yesterday Home Depot, Oshkosh Truck Corporation and
VeriSign were participants.
Gutierrez is one of the members of a high-powered delegation led
by US Treasury Secretary Henry Paulson for a two-day strategic
economic dialogue beginning today with high-profile Chinese
officials.
In addition to Paulson, the team comprises six members of
cabinet rank including Gutierrez and the Federal Reserve Chairman.
They are expected to discuss the bilateral trade imbalance, the
renminbi exchange rate, intellectual property rights protection and
restrictions on US exports to China.
(China Daily December 14, 2006)