China agreed to buy more EU bonds and to purchase 50 Airbus planes during German Chancellor Angela Merkel’s state visit to Beijing on Thursday, Reuters reported. “China is willing, on condition of fully evaluating the risks, to continue to invest in the euro zone sovereign debt market, and strengthen communication and discussion … to support the indebted euro zone countries in overcoming hardships,” Chinese Premier Wen Jiabao said following the talks. In a separate deal, China’s ICBC Leasing signed an order with Airbus, controlled by Franco-German company EADS (EAD.EPA), for 50 planes, an apparent breakthrough after China froze US$14 million worth of plane orders earlier this year in a refusal to comply with new EU emission rules. Deals were also struck to extend Airbus production in Tianjin under a US$1.6 billion plan, as well as to build a US$290 million Volkswagen (VOW.FRA) facility.
Categories