China to spend US$4.3b in US shopping spree

China to spend US$4.3b in US shopping spree

CHINA is on another shopping spree in the United States that appears to be as much about salesmanship as the country’s rapidly growing purchasing power.

Hoping to ease tensions raised by the massive trade imbalance dividing two of the world’s economic powers, China has periodically come to the United States on “buying missions” to demonstrate the country’s willingness to import more goods and services.

China kicked off its latest campaign on Wednesday in San Francisco with a commitment to buy US$4.3 billion in US technology.

In two weeks, government leaders will begin talks in Washington on the US’ US$232 billion trade deficit with China and other issues.

Chinese President Hu Jintao and his US counterpart George W. Bush yesterday exchanged views in a telephone conversation on the upcoming second round of strategic economic dialogue between the two countries.

Hu appreciated the US government’s active attitude toward the development of China-US economic and trade cooperation.

Hu said he believes that with concerted efforts by both sides, positive achievements will be scored in this round of dialogue, which will contribute to giving fresh impetus to China-US economic and trade cooperation.

Bush hopes that great achievements will be made in this round of dialogue.

At a posh hotel in San Francisco, a broad cross-section of business and government leaders from China and the United States celebrated 27 contracts signed on Wednesday.

The deals primarily involved computer software, semiconductor and telecommunications companies. The list of US beneficiaries included high-tech bellwethers Microsoft Corp, Oracle Corp, Cisco Systems Inc and Hewlett Packard Co.

California Lieutenant Governor John Garamendi hailed the agreements as an “important step in furthering the deep relationship between this state, this country and China.”

To underscore China’s resolve to explore more US investments, executives from more than 200 Chinese companies are meeting with their US counterparts in 24 cities scattered across 23 states, said Ma Xiuhong, vice commerce minister.

She met with Governor Arnold Schwarzenegger at the state Capitol on Wednesday, and the governor later said California had nearly doubled sales to China. California exports to China totaled nearly US$10 billion in 2006, Schwarzenegger said.