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China to buy $4.3bn in US technology

(Agencies)
Updated: 2007-05-10 09:10

San Francisco -- A delegation of Chinese business leaders committed to buying US$4.3 billion in US technology, hoping to ease a friction to the trade imbalance dividing two of the world's economic powers.

The agreements were trumpeted at a ceremony Wednesday, two weeks before the scheduled start of government talks in Washington where leaders will try to tackle the United States' trade deficit with China and other prickly issues.

California Lt. Gov. John Garamendi hailed 27 contracts signed Wednesday as an "important step in furthering the deep relationship between this state, this country and China."

Executives from more than 200 Chinese companies are meeting with their US counterparts in 24 cities scattered across 23 states, said Ma Xiuhong, vice minister of China's Ministry of Commerce.

In its first stop, just north of Silicon Valley's high-tech heartland, the Chinese coalition primarily sealed deals with computer software, semiconductor and telecommunications companies. The US beneficiaries included high-tech bellwethers Microsoft Corp., Oracle Corp., Cisco Systems Inc. and Hewlett-Packard Co.

Already boasting the world's largest population, China has become an increasingly attractive market for makers of high-tech gear as the country's rapid economic growth feeds the demand for more powerful computers and more sophisticated mobile phones.

Chinese Vice Premier Wu Yi and US Treasury Secretary Henry Paulson are to hold trade talks in Washington May 22-24.



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