Chinese buying spree in U.S. likely to include billions in power plants, Boeing jets
General Electric Co. on Tuesday disclosed energy, aviation and rail projects with China worth at least $2.1 billion in sales--the first of what is expected to be a number of megadeals announced during Chinese President Hu Jintao's state visit in Washington.
One of the collaborations involves a five-year joint venture with China Huadian Corp. to produce and install at least 50 gas turbine generators, which the company said will bring in about $500 million in revenue. In announcing the agreement, GE and the Department of Commerce emphasized how the deal with benefit the U.S.-- $350 million will be U.S. exports and could create about 2,100 U.S. jobs.
The Wall Street Journal reported that similar announcements are in the works: "The Shanghai-based venture with Aviation Industries of China will handle the development and sale of all new integrated avionics systems for the two companies... The U.S. also expects deals in the computer and agricultural areas. The White House expects the centerpiece of the package to be the sale of Boeing Co. jets."
Separately, a Chinese trade mission in Houston signed $600 million in deals with U.S. companies that do business in porcelain and cotton and an agreement to collaborate on development of solar power.
"These six deals are just the start of further strengthening Chinese-U.S. economic cooperation," deputy commerce minister Wang Chao said in a statement.
The Ministry of Commerce said Wang on Friday will lead a 500-member mission comprised of businessmen and trade officials to Chicago--one of the stops on Hu's visit and of course U.S. President Obama's old stomping grounds--to explore other possible deals.
Ariana Eunjung Cha
| January 18, 2011; 11:57 AM ET
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