CHINESE companies signed a deal with U.S. aerospace giant Boeing to buy 300 aircraft Tuesday as President Xi Jinping began his first state visit to the United States.

    The massive order demonstrates the vital importance of the Chinese market despite a growth slowdown in the world’s second-largest economy that threatens to cut into the expansion of air travel.

    The State-owned Commercial Aircraft Corp. of China also reached an agreement with Boeing to set up a “completion center” in China for its narrow-body 737 airliners, the official Xinhua News Agency said. The completion center in China for the medium-range Boeing 737 will be the firm’s first outside the United States.

    It represents a step up in the U.S. company’s competition in China with European rival Airbus, which already has a manufacturing presence in the country.

    The Xinhua report gave no immediate details of the models of the planes bought by the Chinese companies or the value of the sale.

    Xi was due to visit Boeing’s main aeroplane factory in Washington state Wednesday, as he looks to highlight the economic importance of China to U.S. firms with the countries’ political relationship beset by tensions.

    The Commercial Aircraft Corp. of China confirmed to AFP that it will set up a joint venture with Boeing for interior completion, painting and other delivery support services for Chinese customers. No details were revealed on where it would be located or when it would open.

    “This shows cooperation between Boeing and a Chinese enterprise has been lifted to a major-manufacturer level,” it said in a statement.

    China is expected to add 6,330 new aircraft worth US$950 billion to its commercial fleet by 2034, Boeing said last month in its annual China Current Market Outlook, despite slowing economic growth.

    Xi delivered a policy speech at a Tuesday dinner in Seattle, speaking to an audience of 800 U.S. and Chinese business and government leaders.

    Xi’s speech marked the opening leg of his first state visit to the United States and preceded a trip to Washington today, where he will be greeted with a 21-gun salute and an official state dinner by U.S. President Barack Obama.

    Besides cybersecurity, the two countries are hoping to work out their differences on a number of issues, including climate control.

    Xi also was scheduled to meet with Apple CEO Tim Cook, Amazon CEO Jeff Bezos and Microsoft CEO Satya Nadella while in Seattle. (SD-Agencies)

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