FACTBOX-Business deals announced around Hu's U.S. visit

Tue Jan 18, 2011 5:28pm EST

Jan 18 (Reuters) - Chinese President Hu Jintao, who arrived in the United States on Tuesday for a four-day visit, is expected to bring business deals and purchasing commitments.

A Chinese business delegation and the U.S. government have already announced deals and more are expected during the week.

Here are some of the deals announced so far:

CLEAN ENERGY

Alcoa Inc (AA.N) and China Power Investment Corp announced a collaboration on aluminum and clean-energy projects on Tuesday that could lead to as much as $7.5 billion in investments, the U.S. Department of Energy said.

Duke Energy Corp (DUK.N), AES China, a subsidiary of Virginia-based AES Corp (AES.N), and Florida's UPC Management also entered into clean- or renewable-energy projects with Chinese companies.

UPC's Brian Caffyn said the company signed a deal for a joint venture with China Guodian Corp to develop and operate one gigawatt of wind projects in China, an estimated $1 billion investment that will take about three years to complete.

WESTINGHOUSE

Westinghouse Electric Co said on Tuesday it agreed to a $35 million contract to provide China Baotou Nuclear Fuel with equipment to manufacture fuel. The fuel would be used at Westinghouse nuclear power plants being built in China.

Westinghouse, controlled by Japan's Toshiba Corp (6502.T), also announced a two-year extension of its agreement to build the plants. The original agreement was signed in 2008, it said in a statement.

AMERICAN ELECTRIC POWER

American Electric Power Co (AEP.N) signed an agreement with China's largest power company, China Huaneng Group [HUANP.UL], to evaluate carbon capture technology that could be used in power plants in the United States.

American Electric also signed an agreement with State Grid Corp of China to jointly evaluate energy-storage, smart-meter and other technologies, the energy department said.

ENER1

Battery maker Ener1 HEV.O signed a joint venture with Wanxiang Group to make electric vehicle batteries for sale in China. Ener1 plans to expand its U.S.-based research and development and engineering staff as a result of the deal, the energy department said.

GENERAL ELECTRIC

General Electric Co's (GE.N) deal with China Huadian Corp to supply about 50 gas turbines is expected to generate $500 million in revenue during the next five years.

About $350 million of that will come in the form of exports from the United States, GE -- which has focused on China as an opportunity for sales of power and healthcare equipment -- said on Tuesday. [ID:N18220648]

A GE deal with China Shenhua Group, forming a joint venture to work with cleaner coal, is expected to generate more than $100 million in U.S. exports of technology and engineering.

SOYBEANS DEAL

A Chinese delegation will sign agreements in Chicago on Thursday to buy an unspecified amount of U.S. soybeans, the U.S. Soybean Export Council said. [ID:nN18167138]

COTTON DEALS

A 120-person delegation in Houston signed two cotton import agreements, one on import of assembly kits, one on "development and application of efficient crystalline silicon solar cells and photovoltaic generation system" and a porcelain-imports deal, according to Chinese media outlet Xinhua.

An official with the Chinese consulate in Houston declined to provide details of the companies involved. Xinhua reported the deals, with six companies, were worth $600 million. [ID:N17292307] (Reporting by Emily Stephenson)

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Comments (1)
mikelz wrote:
It’s sickening. We have to buy clean energy from China? I am long AEP and DUK. I am tempted to dump them for a clear conscience. However, both of them jumped today behind this news. Where in the heck is American industry? Oh, I guess that was a rhetorical question. We all know it is in the final stages of moving completely to China.

Mike Elzey

Jan 18, 2011 3:16pm EST  --  Report as abuse
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