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View Full Version : China Cos To Buy US$2.23 Billion Goods, Services In UK



Fage
02-21-2009, 08:43 AM
Freitag, 20. Februar 2009, 09:34 Uhr

BEIJING -(Dow Jones)- China will soon send a group of companies on a buying spree to the U.K. to purchase a total of US$2.23 billion worth of products and services, a person familiar with the situation told Dow Jones Newswires on Friday.

The U.K. trip is part of a European shopping tour organized by China's Ministry of Commerce scheduled to take place later this month. The Chinese firms will also visit Germany, Switzerland and Spain.

While Beijing has often used such investments to ease pressure from the West on various political issues, China's latest shopping spree in Europe also reflects a broader strategy to bargain-hunt key natural resources and high-technology goods amid the global recession, either through direct purchases or equity deals.

As members of the delegation, HNA Group, an aviation industry conglomerate, and unit Hong Kong Airlines Ltd. will buy a combined US$1.33 billion worth of aircraft engines and related services from Rolls-Royce Group PLC (RYCEY), said the person, who declined to be named.
Officials at HNA Group weren't immediately available for comment.

Another unspecified Chinese firm will pay a combined US$615 million for 3,000 Jaguar and 6,000 Land Rover automobiles, the person said.

Two other Chinese companies will spend a total of US$64 million on buying Rolls Royce cars, the person said, adding another local firm will pay US$120 million for mobile phones produced by Sony Ericsson Mobile Communications.

Separately, Beijing will sign a US$35 million contract with Origo Sino-India PLC (OSI.LN) for an eco-city project jointly developed by China and the U.K.

At a press conference Monday, commerce ministry spokesman Yao Jian said China will send companies on a buying mission to Europe this month, mainly for technology and equipment. Yao added the value of the purchases would be decided by companies and industry associations.
A ministry spokeswoman declined to comment Friday on any details of the mission.

China Premier Wen Jiabao first announced the plan to send "procurement teams" to buy goods and services from Europe during his visit to the U.K. early this month.

China said Wednesday it is looking at ways to use its nearly US$2 trillion of official foreign-exchange reserves to invest abroad.

Also Wednesday, Australian mining company Fortescue Metals Ltd. disclosed preliminary talks with China Investment Corp., the country's US$200 billion sovereign-wealth fund, as well as separate early talks with mining giant Anglo American PLC.

Australia's policy makers are already considering whether to clear Aluminum Corp. of China's proposed US$19.5 billion investment in mining giant Rio Tinto PLC, as well as a deal by China Minmetals Corp. to buy a smaller Australian mine for US$1.7 billion. Both need access to funds in a time of slumping prices.

On Tuesday, China struck a deal with Russia to lend US$25 billion to Russian energy companies in exchange for larger supplies of crude oil.

Source:http://www.dowjones.de/site/2009/02/china-cos-to-buy-us223-billion-goods-services-in-uk.html

sinophile
02-21-2009, 01:46 PM
China disgorging its foreign currency reserves in exchange for deflated assets. If this deflationary period is short its going to be greatest trade ever. If its a long-term thing they may wish they'd held on to the money. Time will tell.

Ordie
02-21-2009, 04:06 PM
PRC nationals are arriving in California to get a great deal in real estate.

Gat0r
02-21-2009, 07:09 PM
Hmmm is China finally starting to get rid of their dollar reserves? I was just reading in Peter Schiff's book Crash Proof, he was stating that we will have a wave of dollars coming into the U.S. from our creditors who will be buying up goods and assets which will cause a significant devaluation of the dollar. As you said sinophile time will tell.