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Posted at 10:43 AM ET, 01/19/2011

China agrees to $45B trade investment, policy changes

By Howard Schneider

China has agreed to $45 billion in trade and investment contracts with U.S. companies and has made a series of other trade-related concessions as part of Chinese President Hu Jintao's visit, a senior administration official said Wednesday.

The agreements, which come as Hu and President Obama prepare to speak with American business leaders in Washington on Wednesday, include the purchase of 200 Boeing aircraft and contracts with a broad range of manufacturing, agriculture and technology companies, the official said. The ventures include a broad strategic cooperation agreement between Honeywell and Chinese congolomerate Haier, and the development of a hybrid bus by Cummins Engine Co. and Zhengzhou Yutong Bus Company

The official, who spoke on condition of anonymity because the deals have not, said the deals are estimated to support some 235,000 U.S. jobs.

In addition to the deals, China has agreed to a series of policy changes that respond to some of the central concerns that U.S.companies have expressed about the business climate in China, the official said. They include an agreement to perform and publish audits to confirm government agencies at all levels are purchasing legal software. U.S. companies have complained about widespread software piracy in China, and to Beijing officials recently promised to tackle the problem and said they had budgeted money throughout the government to pay for software licenses

China also said it would allow the use of more imported technology and give foreign companies a more even playing field to compete for government contracts at both the national and provincial levels.

The official said the steps addressed some core concerns of the U.S. business community, and presented a "major opportunity" to boost U.S. exports to China. It is also, he said, a sign China is moving on its promise to rebalance its trade relations with the rest of the world and the U.S. in particular. China runs a large trade deficit with the U.S., and has accumulated nearly $3 trillion in foreign reserves through its exports.

"We view this as a major opportunity and these contracts as a step in that direction," the official said.

By Howard Schneider  | January 19, 2011; 10:43 AM ET
Categories:  China, International Economics, Trade  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Economic agenda: Wednesday, Jan. 19, 2011
Next: Corporate leaders meet with Obama, Hu on exports

Comments

Its become a cliche, hasn't it? China visits a country, announces a gazillion dollars in purchases or investment. The USA is like Zambia, only the USA gets a larger dollar-figure.

Posted by: pgr88 | January 19, 2011 10:58 AM | Report abuse

By the hands of local officials and gang, my house was destroyed

I am Chinese,my name is JingTao Chang. My house was located in the side of central park of LinYi City, ShanDong Prov.,China. Without any appropriate legal procedure,my house was demolitioned by sinister gang directed by local government officials and police.

It is ruled by Universal Declaration of Human Rights that No one shall be subjected to arbitrary interference with his family, home. Everyone has the right to the protection of the law against such interference or attacks.

Unfortunately,we living in china have no such rights although the CCP and the government are declaring the people of china have had such human rights.

Posted by: Anonymous | January 19, 2011 11:06 AM | Report abuse

By the hands of local officials and gang, my house was destroyed

I am Chinese,my name is JingTao Chang. My house was located in the side of central park of LinYi City, ShanDong Prov.,China. Without any appropriate legal procedure,my house was demolitioned by sinister gang directed by local government officials and police.

It is ruled by Universal Declaration of Human Rights that No one shall be subjected to arbitrary interference with his family, home. Everyone has the right to the protection of the law against such interference or attacks.

Unfortunately,we living in china have no such rights although the CCP and the government are declaring the people of china have had such human rights.

Posted by: blizzardsky | January 19, 2011 11:08 AM | Report abuse

Without any legal redress, without any compensation

It’s ruled by the law that we can request a new house in the former address if there will be a new residential building, also it’s ruled by the law that we have rights to know the building plan in our address. But in fact the government and the developer are so fear about our rights that they refused to provide us any paper about the plan even without any reason.

It’s ruled by the law that court should file a case or decide to reject the complaint within seven days. After my house was demolitioned, all the courts are all so slow and stupid that no one court can file the case even a period of more than 7 months. Till now the courts have all received my complaint and they are busy to putting off my complaint to each other.

It’s ruled by Universal Declaration of Human Rights that Everyone is entitled in full equality to a fair and public hearing by an independent and impartial tribunal, in the determination of his rights.

Unfortunately the china’s courts have no knowledge about human rights and laws because they are all built and offered by the CCP, also they are all obeyed by the CCP.

Posted by: blizzardsky | January 19, 2011 11:09 AM | Report abuse

It’s ruled by Universal Declaration of Human Rights that Everyone has the right to the protection of the law against the interference or attacks to his home, family and house, nor to attacks upon his honour and reputation.

We obeys all the rules of china.Our house was destroyed only because its address is so valuable that the official and police are lured to break the rules of laws. We all were beated by the hired gang before the eyes of police and officials.

Now the government have no compensation for our house, nor apology for our injures.It is only because they are government official.

And now the courts are all busy to putting off the cases.

After all the experience above, do you really think we Chinese have any honour or rights in the eye of government or court no matter what the Chinese leaders declare?

Posted by: blizzardsky | January 19, 2011 11:10 AM | Report abuse

Making a business deal with China isn't particularly difficult. Getting them to honor it is a whole other matter. Let's see how much of that $45B actually changes hands and how much techoogy transfer happens beforehand.

Posted by: BurgundyNGold | January 19, 2011 11:12 AM | Report abuse

The grammar in this article is poor.

Posted by: Anonymous | January 19, 2011 11:27 AM | Report abuse

infested with messages posted by netbots. You need to hire better programmers to avoid being a laughing stock.

Posted by: Anonymous | January 19, 2011 11:37 AM | Report abuse

Details... I want details. What KIND of Boeing jets are they buying?

Posted by: Anonymous | January 19, 2011 11:54 AM | Report abuse

Napoleon sold Louisiana to the United States to finance a war. Likewise, Tsar Alexander II sold Alaska to the United States for financial and geopolitical reasons,

So, learning from history, I’m thinking that while the Red Chinese President is in Washington and instead of feeding the guy a meal from Panda Garden, that President Obama negotiate a deal to sell California and Nevada to China as a down payment on the trillion dollars of U.S. debt the Red Chinese own.

Posted by: Anonymous | January 19, 2011 12:04 PM | Report abuse

Hey, 45 billion almost equals the bonuses that Wall Street just announced.

Good thing we protected those banks from housing market losses by using taxpayer money. Otherwise they might not be the good corporate citizens that we've come to know and love.

Posted by: Anonymous | January 19, 2011 12:14 PM | Report abuse

The real action doesn't take place at The White House. For a glimpse of the future and some unexpected outcomes of Chinese American relations see Chinese-American Corporations: Cash and Politics at
http://www.saintpeterii.com/blog/?p=641

Posted by: Anonymous | January 19, 2011 12:20 PM | Report abuse

Is this good for us or them. We owe them right? So explain how this will work for us? Wow.

Posted by: Anonymous | January 19, 2011 12:23 PM | Report abuse

The other question is "when?" If this is over a 50 year span it equates to little change on the overall.

Posted by: jbeeler | January 19, 2011 12:28 PM | Report abuse

I agree with anonymous. The grammar in this article is poor, and this is hardly the 1st time. Does WaPo no longer have copy editors? Has it hired 7th graders to write its articles? Unfortunately, I think this is the price we have to pay for the free site.

As to China, don't get me started. I've been to China over 8 times and met with even more company officials. Every single one of them has lied or produced forged documents. I'm not talking about speculation or hunches, I am talking about being caught red-handed (and I was a U.S. official at the time). The Chinese ARE NOT TO BE TRUSTED AT ALL. NOT A SINGLE ONE!

Burgundyngold is also spot on. What we would call a final deal is just the starting point for the next round of negotiation. Meanwhile, they get what they want - our technology.

Its time for this country's leadership to start thinking about our strategic relationship with China using a time window that is longer than an election cycle.

China is beating us because they practice national capitalism. We must do the same. Otherwise, we will either find ourselves at war or become their economic slaves in short order.

Posted by: johnnycomelately1 | January 19, 2011 12:32 PM | Report abuse

"Unfortunately,we living in china have no such rights although the CCP and the government are declaring the people of china have had such human rights." We in America have no such rights either..illegal paper trails and no one actually owns their home anymore either, banks do. There are no "rights" here either, just a bunch of hoopla. Our job is to work until we cant anymore, and hopefully die before Social Security has to be paid out. This isn't a Democracy, it is Corporate Capitalism based government. You don/t have a voting "choice". Unless that candidate is swimming in special interest campaign dollars,his name won't even make the voting registrar. Even though China and other Nations are more obvious about their money, power and oppressions, we in America are just as oppressed by the rich and powerful. If u have the money to "defend" your "rights", you may get to actually exercise them, but if you don't, such as the masses here don't, you just do what you're told here.
My advice, stay in China. At least your government in more transparent and honest.

Posted by: Anonymous | January 19, 2011 12:33 PM | Report abuse

Thank you Pres. Obama!!

Posted by: angie12106 | January 19, 2011 12:34 PM | Report abuse

The Chinese will act what is favourable to them. China does not play by universal rules. It plays by its own rules. The RMB or Yuan is largely determined by Chinese Central Bank. It's largely undrevalued to remain competitive. Look at South Korea won & Japanese Yen , all have appreciated as their economies grew & the value of the currency appreciated.
Unless US officials takes a tough stance, US will always lose out. China does not have a minimum wage, pension plan or contributing bonuses for its workers.Much of the deficit is largely due Americans own consumers demand for cheap products & US corporations unbridled greed that has resulted in the deficit. China domestic economy is so poor that without US & Europe, it's economy will stuter.
Again it does no good to the bulk of chinese workers who end up in slaves like working condition. Neither having the economic power or social security.
Its a zero sum game except to fill the pockets of US Corporate Shareholders & Chinese Government Coffers. China needs the export to ensure it builds up of military might to match the US within next decade or so. The US suffers budget cuts that hampers job growth back home. The wars in Afgan / Iraq / Terrorism is also taking its financial toll.
Simply solution. The US must impose currency valuation tax for exports of countries which undervalues its currency. This will help cut the deficit, support jobs in US & reduce China hugh reserves. Always remember this is still a nation run by select group of dictators. China has overtaken Russia as the greatest threat to the region & globally.

Posted by: Karuna - Malaysia | January 19, 2011 12:35 PM | Report abuse

It's a long used technique of the CCP to plug your mouth and to buy its way. Unfortunately or fortunately, it works always effectively.

Posted by: Anonymous | January 19, 2011 12:39 PM | Report abuse

45B is not a big deal. We have send trillions of dollars to China in the last
25 years plus thousands of factories. We depleted our production capacity and send it to China, Mexico and others..We need to have a import duty of 30% on all products from China, only them our manufacturing will be back in the USA. We forget that China is a communist country and their only aim is to destroy our systems, seem that we forgat about it...Our policy towards China has been wrong for the last
50 years!!!!

Posted by: Anonymous | January 19, 2011 12:40 PM | Report abuse

It's a long used technique by the CCP to plug your mouth and to buy its way. Unfortunately, or fortunately, it always works effectively.

Posted by: Anonymous | January 19, 2011 12:40 PM | Report abuse

"China runs a large trade deficit with the U.S"
==============
I believe the author meant "surplus."

Aside from that, Ener1, a budding lithium-ion battery maker in Indiana, has agreed to transfer its technology, complete with an engineering team and factory machinery from Indiana, to set up a battery plant in China to power buses. Who paid to develop this green technology? Why the American taxpayers of course. And who gets the jobs? Why China does of course.

China wants a one-way street to China for our technology and a one way street back to the USA for the products they make from it. Technology, it seems, is all we have left to bargain with.

Posted by: mongolovesheriff | January 19, 2011 1:05 PM | Report abuse

They made trillions off us and took millions of jobs off our soil, and that's all they got to offer? 45 billion?
Pretty one-sided if you ask me.
Like others here posted, I wouldn't trust a single word from them.
They're the great manipulators.

Posted by: Anonymous | January 19, 2011 1:23 PM | Report abuse

The Chienese are guilty of some sins but the state of America is due to the thousands of corporation that took the jobs overseas....old greed its the cause!!
in the last 18 years mmore than 25 million jobs where send overseas...we need to inpose a 30% duty on all products coming from Asia and other countries they you will see some jobs coming back to the USA..
If you look at the 500 main companies in this country, they do not have any manufacturing facility here, companies like
Apple, HP, Dell, etc.etc...
So do not blame China alone, this is selfinflicted!!!

Posted by: Anonymous | January 19, 2011 1:45 PM | Report abuse

Walmart should have had it's employees do the Honor Guard for Hu Jintao!
Agree with me? http://upc.bz/0176

Posted by: laskafootNmouth | January 19, 2011 1:54 PM | Report abuse

The Chinese Empire didn't get big and powerful by making deals unfavorable to themselves. But in this case, they have to help us out in order to prevent loss of American markets for their manufactured goods. This is why they bought up so much of our debt.

But I agree with those who say we will be getting the short end of the stick and that in a couple of decades we will be a Chinese subsidiary.

Posted by: loyalsyst | January 19, 2011 2:02 PM | Report abuse

I only wish that we were so out spoken as you guys, in that our national wealth is being syphoned away, but the British seem to just put up with it. Its beyond me"?"

Posted by: arnhem | January 19, 2011 2:07 PM | Report abuse

This article is poorly written.

Posted by: Sincear2021 | January 19, 2011 2:20 PM | Report abuse

As a concerned citizen, one can only hope that both the government and the companies have strict agreements with some verifiable means of checking on China's compliance, so that they do not steal the technology and or dodge the patents. They have a very long history of producing knockoffs that look like the original and act like the original with no payment going to the creators. It looks and smells like stealing technology.

As a country we need agreements with fast acting teeth. Big teeth that can rip a big hunk of economic hide off any country that cheats, not gums that get us but scraps from the table.

We should not give them the opportunity to steal our engine and bus business, or any other business unless we can enforce the protection of our property rights and they agree or get taken to the wood shed.

Their F22 knock off screams at us and we should listen.

Posted by: vonpfahl | January 19, 2011 2:26 PM | Report abuse

Obama out in 2012...

Posted by: Anonymous | January 19, 2011 2:47 PM | Report abuse

It is an interdependent world with no real borders drawn on the land... nationalism in maintaining cultural integrity is important and so is sharing the responsibilities for the environment and health and freedom from poverty at the hands of wealthy multi-national corporations or combines... We have oversold free trade when in fact we invade countries like Iraq and we are selling our technology since we are seeking fast profits while our country is falling apart and we are spending so much on wars while our homeland security technology is being wasted on protecting the falling apart bridges and risky dams rather than fixing them.

Posted by: Anonymous | January 19, 2011 2:47 PM | Report abuse

Seems people are forgetting that most of the imports from China are sourced by American based comoanies who figured out they can make a hell of a lot more money selling a 2 dollar toaster for 15 bucks at Walmart than a 17 dollar US toaster for 22 bucks. Main driver of chinese export growth...US corporate greed. Chinese companies are basically importing/stealing technology to primarily gain market share at home... they will then have such economies of scale that no Western company will be able to compete, even if they do let the currency appreciate. You see they have a game plan...we don't

Posted by: retriever2 | January 19, 2011 2:49 PM | Report abuse

I personally think China is getting a better deal than us on the trade agreement. After all, there is nothing that restricts China from selling products to the US that DO NOT make us sick or kill us upon repeated exposure. Our products will not do that to their people, they are just more expensive due to out labor costs (actually union costs). Shouldn't the people of America finally look at the "Made in" label and decide which country they belong to and serve.
We borrow money from a country that exploits their citizens, and use that borrowed money to purchase their goods so they can lend us more and exploit more of their citizens. If the liberals are so concerned about human rights, why don't they try to protect some of the working prisoners of China, instead of warring about how much money they can spend, after borrowing more of it. Of course.

Posted by: Anonymous | January 19, 2011 2:49 PM | Report abuse

Loral corp. sold China technology for rocket guidance now our Aircraft carriers are targeted by Chinas rockets. GE is selling China latest jet engine technology... when their fighter planes, stealth or otherwise are running on soviet jet technology. You think there will be a financial and military blowback? You think ChiCom will make planes for one tenth the price Boeing or Airbus makes....? Corporations like GE and Loral are the problem, they see short term profit and care less for long term problem for the country.

Posted by: Anonymous | January 19, 2011 2:51 PM | Report abuse

It is an interdependent world with no real borders drawn on the land... nationalism in maintaining cultural integrity is important and so is sharing the responsibilities for the environment and health and freedom from poverty at the hands of wealthy multi-national corporations or combines... We have oversold free trade when in fact we invade countries like Iraq and we are selling our technology since we are seeking fast profits while our country is falling apart and we are spending so much on wars while our homeland security technology is being wasted on protecting the falling apart bridges and risky dams rather than fixing them.

Posted by: Anonymous | January 19, 2011 2:54 PM | Report abuse

It is an interdependent world with no real borders drawn on the land... nationalism in maintaining cultural integrity is important and so is sharing the responsibilities for the environment and health and freedom from poverty at the hands of wealthy multi-national corporations or combines... We have oversold free trade when in fact we invade countries like Iraq and we are selling our technology since we are seeking fast profits while our country is falling apart and we are spending so much on wars while our homeland security technology is being wasted on protecting the falling apart bridges and risky dams rather than fixing them. And like selling our silk worms instaed of having them stolen.

Posted by: Anonymous | January 19, 2011 3:08 PM | Report abuse

It is an interdependent world with no real borders drawn on the land... nationalism in maintaining cultural integrity is important and so is sharing the responsibilities for the environment and health and freedom from poverty at the hands of wealthy multi-national corporations or combines... We have oversold free trade when in fact we invade countries like Iraq and we are selling our technology since we are seeking fast profits while our country is falling apart and we are spending so much on wars while our homeland security technology is being wasted on protecting the falling apart bridges and risky dams rather than fixing them. And like selling our silk worms instaed of having them stolen.

Posted by: Anonymous | January 19, 2011 3:31 PM | Report abuse

Millions unemployed over the fair trade agreement and china offers under 300,000 jobs

I can not talk and understand a tech support person unless overseas. Ridiculous.

45 billion is nothing. congress throws that much away a day...

I told you guys before this was not about civil rights, but intellectual property or $. 45 billion will go to Microsoft...

Posted by: Anonymous | January 19, 2011 4:00 PM | Report abuse

I am quite amazed only few Americans here are samrt enough to realized the fact that China got jobs not from US but from Japan and Korea 2 decades ago and jobs will go to Vietnam and Malysia not back to US since jobs starts from hard working and sewing Nike shoes.
Americans dont need a mirror. The only thing they need is a punchbag. Losers!

Posted by: eastman1 | January 19, 2011 4:46 PM | Report abuse

The United States has FOOD surpluses, Montana and Wyoming Clean Coal, and, BEEF all SURPLUSES to sell!

Posted by: philosopherkingtomas | January 19, 2011 5:57 PM | Report abuse

The trade surplus of China to USA is not that USA pay more about Chinese production.

Instead, it is resulted from the less pay to Chinese labor. Anyone thinks this at all?

Posted by: Anonymous | January 19, 2011 11:44 PM | Report abuse

that sounds good

Posted by: Anonymous | January 21, 2011 9:09 AM | Report abuse

support

Posted by: Anonymous | January 21, 2011 9:17 AM | Report abuse

support

Posted by: Anonymous | January 21, 2011 9:17 AM | Report abuse

there are too many faked goods around china ,i can't even think about that .ha

Posted by: Anonymous | January 21, 2011 9:22 AM | Report abuse

im quite surprise that only few amricans analyse

Posted by: Anonymous | January 21, 2011 9:25 AM | Report abuse

Boeing sells planes to China. China disassembles them and steals the technology and design. China sells Boeing planes under their own companies names to South American countries for multi-billion dollar contracts. Sound familiar? Here is a hint. Siemens, Bombardier and Kawasaki thought they could trust China too.

Posted by: Anonymous | January 23, 2011 11:48 PM | Report abuse

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