Representatives from Zibo Lanyan Group Co Ltd and Glencore Grain B.V. signing an agreement in Houston on Monday. Chen Ruwei / Xinhua

Vice-minister of commerce says deals will build up confidence to cooperate

HOUSTON - China signed six deals worth $574 million with undisclosed companies in Houston on Monday to kick off its four-day trade mission in the United States.

The deals, signed at the US-China Trade & Investment Seminar, came a day before President Hu Jintao's highly anticipated visit to the US.

Vice-Minister of Commerce Wang Chao led a group of more than 100 Chinese business leaders to Houston, signing six contracts and agreements involving automobiles, electronics, textiles and clothing as well as porcelain.

These deals will "build up confidence of (China-US) cooperation, expand the room and coverage of cooperation," Wang said.

According to Reuters, China's Houston delegation included 120 government and business officials. It included chief executives from some of China's largest firms in trade, health, biotechnology, real estate, manufacturing, banking and education.

The delegation, sponsored by China's Ministry of Commerce, is scheduled to visit 12 states and cities including Texas, North Carolina, Chicago, Boston and Washington DC.

China ranks as Houston's third largest global trading partner. In 2009, trade between Houston and China totaled $10 billion. More than 700 companies in Houston currently have business deals with China. In recent years, China has accelerated its pace of investment in the US, which now exceeds $4.7 billion without the Houston deals.

China and Houston also signed a Memorandum of Understanding to strengthen business ties between the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the Greater Houston Partnership, an advocate for the city's business community.

Jeff Moseley, president and CEO of the partnership, said the deals are an economic boost to the US' recovering economy.

"It is an opportunity for a more formal understanding between China and what Houston can offer to Chinese investors," he told China Daily.

China has about $2 trillion in US debt. Bilateral trade volume between China and the US topped $380 billion.

Moseley said Chinese investors are motivated to invest in the US, adding that Houston presents a low risk for investors.

Over the last two years, the partnership has signed 12 such memorandums with two Chinese provinces and eight cities. Moseley said China and Houston should look into opportunities for nonstop air flights.

"One of the things we are lacking here is a nonstop flight from Houston to Beijing or Shanghai. If you have one or two stops from China to Houston, it becomes a barrier because it takes time. Business investors are looking at time and we want to remove that barrier," Moseley said.

He said President Hu's visit is a "tremendous, positive, warm and open gesture and it symbolizes that the economies of China and the US are closely working together and that we have shared goals and we have shared opportunities."

Houston Mayor Annise Parker hosted a luncheon for Wang after a signing ceremony was held for his delegation.

"China is the strongest growing economy in the world and we have a strong Chinese community and an international business community here in Houston that wants to do business with China, so the time is right to develop that relationship," Parker told China Daily. "It is a very important statement that (the Chinese delegation) chose (Houston) as part of their visit."

Parker sees President Hu's visit as a "very promising one" and said "if the discussion (on trade) between the two presidents can create mechanisms to get over some difficult issues, that means business will take off."

After the deals were announced, Wang offered his take on trade issues between the US and China. He said that "even though there have been some ups and downs between the two (nations), the general development of momentum for cooperation is good."

"We should try to avoid politicizing trade issues. Further cooperation between the two and the efforts of the two governments will provide a better platform for developing the business communities," Wang added.