Boeing Secures $19 Billion Jet Order from China
At least one major concrete business deal has come out of the Hu-Obama summit so far, as Boeing secured a $19 billion order from China:
The orders were already in the Boeing /quotes/comstock/13*!ba/quotes/nls/ba (BA 71.46, -0.28, -0.38%) commercial backlog, but required Chinese government approval before payment and delivery. Delivery of the jets begin later this year and through 2013.
“This is the largest announcement of Chinese government approval of a Boeing commercial airplane order,” said Boeing spokesman Marc Birtel, in an email.
Securing the deal followed a long period of negotiations between the U.S., Boeing and China that likely included offsets, such as an agreement to purchase certain goods or services from the buyer, or to directly invest in the country’s economy.
Talks were concluded this week after the White House said Boeing, Honeywell International /quotes/comstock/13*!hon/quotes/nls/hon (HON 55.22, +0.88, +1.62%) and Pratt & Whitney agreed to provide Air China with the technical support it needs to begin biofuel flights. Read more about the China export deals with the U.S.
In a public policy speech in Washington, President Hu sought to reassure U.S. business leaders about the stability of U.S.-China ties:
Chinese President Hu Jintao assured U.S. business leaders Thursday that China will not engage in an arms race with the United States, pose a military threat to any country or pursue expansionism. But he made clear that his government remains committed to building “a modern socialist country” and rejects foreign interference regarding Taiwan and Tibet.
In the only public policy speech of his state visit to the United States, Hu said U.S.-Chinese relations “have reached unprecedented breadth and depth” in recent years, and he spelled out of series of steps to continue developing those ties.
Addressing a luncheon meeting in Washington hosted by the U.S.-China Business Council and the National Committee on United States-China Relations, Hu said one step was that both countries “must treat each other with respect and as equals.”
“Taiwan and Tibet-related issues concern Chinese sovereignty and territorial integrity,” he said. “They touch upon the national sentiments of 1.3 billion Chinese.” He expressed hope that the United States would “honor its commitments” and “preserve the hard-won progress of our relations.”