U.S. and Hong Kong (1998)

AARON WITNESSES SIGNINGS OF OVER $100 MILLION IN CHINA

Following is the text of the Commerce Department release on the trip:

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April 16, 1998

Commerce Under Secretary David Aaron Witnesses
Signings of over $100 million in China

Hong Kong -- Commerce Under Secretary David Aaron, visiting China to advance vital U.S. commercial policy objectives and expanded trade opportunities in China and Hong Kong, witnessed the signing of over $100 million in agreements between U.S. companies and Chinese officials. Aaron is leading a delegation of 18 U.S. companies to China and Hong Kong.

Under Secretary Aaron's mission follows up on Commerce Secretary William Daley's trade mission to China last fall and also serves to lay some of the groundwork for President Clinton's upcoming visit there in June.

"These signings demonstrate that China's plans for modernization and expansion of its infrastructure, while recently revised downward, are still ambitious and should create enormous opportunities for nurturing trade and expanded cooperation between our two countries," Aaron said. "The mission is part of the Commerce Department's ongoing effort to help U.S. firms maximize export opportunities to create new jobs and economic growth here at home."

The agreements signed were:

Westinghouse signed a $167 million contract with Chinese firms to provide turbines and other services for the Henan Yuzhou Thermal Power Project located in Yuzhou, Henan province. The contract includes an estimated $86 million in U.S.-sourced equipment.

Commerce Secretary William Daley had advocated heavily on behalf of Westinghouse over the last year, including during his visit to China last fall.

York International signed a contract with China National Instruments Import & Export Corporation to supply a $6 million air conditioning unit for the new Pudong International Airport. Secretary Daley had also promoted U.S.business interests in the airport project.

IBM entered into a Partnership Agreement with the Information Port office of the Shanghai People's Municipal Government to jointly set up an electronic government technology center and contributed hardware and software to help establish the technology center. This Center is a part of the Shanghai Municipal Government's effort to build the Information Port into an international economic center.

In addition, Marjory Searing, Acting Assistant Secretary of Commerce and Director General of the Commercial Service, participated in the opening of the Shanghai Wyeth Nutritional Co., Ltd., a joint venture between American Home Products and the Shanghai Dairy Corporation, a $26 million investment with $10 million in U.S. export content.

The mission includes 18 U.S. companies covering sectors such as insurance, engineering, design and construction, information technologies, machine tools, and project finance.

Under Secretary Aaron is also talking with Chinese counterparts about an improved climate for American businesses in China and the need for significant improvement in the U.S. trade deficit with China.

The delegation is now in Hong Kong, the third stop of a three-city visit that began in Beijing April 13 and concludes April 18.

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