The deals include imports of cotton as well as solar cell development and a PV (photovoltaic) system, used in power generation.

The trade delegation, sponsored by the Ministry of Commerce, is scheduled to visit 12 states and cities including Texas, North Carolina, Chicago, Boston and Washington DC.

China ranks as Houston's third largest global trading partner. In 2009, trade between Houston and China totaled $10 billion.

More than 700 companies in Houston currently have business deals with China. In recent years, China has accelerated its pace of direct investment in the US, which now exceeds $4.8 billion, excluding the Houston deals.

China and Houston also signed a Memorandum of Understanding to strengthen business ties between the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the Greater Houston Partnership, an advocate for the city's business community.

Jeff Moseley, president and CEO of the partnership, said the deals are an economic boost to the US.

Moseley said Chinese investors are motivated to invest in the US.

"One of the things we are lacking here is a nonstop flight from Houston to Beijing or Shanghai. If you have one or two stops from China to Houston, it becomes a barrier because it takes time. We want to remove that barrier," Moseley told China Daily.

He said Hu's visit is a "tremendous, positive, warm and open gesture and it symbolizes that ... we have shared goals and we have shared opportunities."

Houston Mayor Annise Parker hosted a luncheon for Wang Chao, vice-commerce minister and leader of the business delegation, after the signing ceremony.

"China is the strongest growing economy in the world and we have a strong Chinese community and an international business community here in Houston that wants to do business with China, so the time is right to develop that relationship," Parker told China Daily.

Parker sees Hu's visit as a "very promising one" and said "if the discussions (on trade) between the two presidents can create mechanisms to get over some difficult issues, that means business will take off."

After the deals were announced, Wang offered his views on trade between the US and China.

"We should try to avoid politicizing trade issues."