Written on January 19, 2011
President Barack Obama has told U.S. and Chinese business leaders that he wants specific ideas on how to remove trade barriers and protect intellectual property.
Obama and Chinese President Hu Jintao (hoo jin-tow) met with the business executives at the White House on Wednesday as part of Hu’s state visit.
Hu told the executive that China is speeding up its economic restructuring and trying to increase domestic consumption. Increased Chinese demand for goods is a prime U.S. concern because it could help reduce a U.S.-China trade gap.
Hu said China welcomes U.S. companies to do business in China.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
WASHINGTON (AP) _ Seeking to ease economic tensions with America’s largest trading partner, the White House said Wednesday that China would purchase $45 billion in U.S. exports, including a highly-sought after $19 billion deal for 200 Boeing airplanes.
The announcement comes as Chinese President Hu Jintao arrived at the White House for a state visit with President Barack Obama.
In addition to the Boeing deal, China will also invest in U.S. exports from agriculture, telecommunications and technology companies, including General Electric, Honeywell and Navistar. The White House said the deals will support up to 235,000 jobs in the U.S.
Executives from Boeing and General Electric are among the business leaders who will meet with Obama and Hu at the White House.
The announcement of Chinese investments could soothe some concerns from the U.S. government and corporate America, both of which have charged that China keeps its currency artificially low in order to make Chinese products cheaper in the U.S. and U.S. products costlier in China.
The White House said China also agreed to strengthen its intellectual property rights enforcement and ease its indigenous innovation policies _ both practices that have irked U.S. businesses.
The indigenous innovation policy China adopted in 2009 limits Beijing’s purchase of foreign products to those designed in China. U.S. businesses see the policy as a ploy to force them to turn over their technology to China or be locked out of business with the government.
The White House said Wednesday that China agreed that it would not make government procurement decisions based on where the intellectual property rights for goods or services are developed or maintained. Officials said China also agreed that it would not discriminate against innovative products made by foreign suppliers operating in China.
U.S. software companies have also said they’re cheated out of billions in sales because Chinese companies, and even government agencies, illegally copy their programs instead of buying them. China agreed in December to allocate funds in its budget for legal software purchases, and on Wednesday, the White House said China agreed to audit the use of legal software and publish the results of those audits. U.S. officials hailed the move as a significant step forward in transparency for the often secretive Chinese government.
Among the companies the U.S. and China reached export deals with are:
_ Boeing: China agreed to approve airline contracts for 200 aircrafts to be delivered over a three-year period, starting this year. The $19 billion package will support more than 100,000 American jobs, according to the White House.
_ General Electric: The White House says GE reached a deal with China Shenhua Energy Company Limited. The joint venture will use GE’s cleaner power generation technologies to advance cleaner coal solutions for industrial chemicals, fuels and power generation. GE estimates the deal has the potential to generate up to $2.5 billion in U.S. exports.
_ Honeywell International, Inc: Honeywell will work with China’s Haier Group to develop and promote low-emission, high energy-efficiency products and solutions. Honeywell estimates the total value of the U.S. export content in the five-year deal is $210 million.