US Companies Signed a Ton of Deals During Trump's China Trip
U.S. companies, from chip giant Qualcomm to aircraft maker Boeing, announced a slew of deals on Thursday during U.S. President Donald Trumpâs visit to Beijing. The deals could be valued as much as $250 billion, though some have been long in the pipeline and many are non-binding.
Below is a summary of the announced deals:
- The state of West Virginiaâs commerce department said China Energy Investment Corporation Limited plans to invest $83.7 billion in shale gas development and chemical manufacturing projects in the state.
- Chinaâs top state oil major Sinopec, Bank Of China, and China Investment Corp agreed to help develop Alaskaâs liquefied natural gas sector. Alaska Gasoline Development Corp signed a deal with the Chinese companies worth up to $43 billion and which could create up to 12,000 American jobs during construction.
- Boeing (ba) won orders and commitments worth $37 billion deal at list prices for 300 jets, including 260 narrow-body Boeing 737s and a total of 40 wide-body 787s and 777s from state purchasing agency China Aviation Supplies Holding Co. The breakdown between firm orders and non-binding commitments was not immediately available. Analysts noted before the announcement that Boeing had already posted over 300 orders from undisclosed buyers this year and that it was not yet clear how much of the China deal would be entirely new business. Boeing declined further comment.
- General Electric (ge) signed three commercial deals with Chinese partners worth a total of $3.5 billion.
- Qualcomm (qcom) signed three non-binding agreements to sell $12 billion of semiconductors to Xiaomi, Oppo and Vivo over the next three years.
- Ford Motor (f) and Chinaâs Anhui Zotye Automobile have agreed to invest a combined $756 million to set up a 50-50 joint venture in China to build electric passenger vehicles.
- Delfin Midstream has reached a preliminary 15-year sales deal with city gas distributor ChinaGas Holdings , Delfin founder and Chief Executive Officer Frederick Jones told Reuters. The agreement calls for Delfin to supply 3 million tonnes a year of liquefied natural gas (LNG) from 2021.
- Goldman Sachs (gs) and CIC announced a strategic agreement to establish a China and United States industrial cooperation fund. The fund will target $5 billion in commitments to invest in U.S. companies in the manufacturing, industrial, consumer and healthcare industries that have or can develop China business connections.
- The United States soybean industry has signed letters of intent worth $5 billion with Chinese importers covering the purchase of an additional 12 million tonnes of soybeans in the 2017/18 marketing year.
- Air Products and Chemicals signed an agreement with Yankuang Group for a $3.5 bln coal-to-syngas production facility in China.
- JD.Com said it would purchase more than $2 billion of U.S. agriculture and food products over next three years, including at least $1.2 billion of beef from Montana Stock Growers Association and pork from Smithfield Foods Inc. .
- Bell Helicopter, part of Textron (txt), reached a deal to sell 50 additional Bell 505 helicopters to Reignwood International, with Reignwood also being named the exclusive reseller for the Bell 505 in China.
- Terex Utilities (tex). and Xuzhou Handler Special Vehicle signed a strategic letter of intent for Xuzhou Handler to purchase 5,000 insulated aerial devices from Terex over five years worth $250 million.
- Viroment signed an agreement with Hangzhou Iron and Steel worth $800 million addressing textile and sewage sludges for over 800 plants. Viroment also signed a $100 million agreement with Guangye Guangdong Environmental Protection Group to address sewage sludge solids disposal requirements in South China.
- Honeywell (hon) said it signed agreements with Oriental Energy to adopt Honeywell products for projects to convert propane into propylene and with Spring Airlines to use Honeywell cockpit technologies and auxiliary power units in aircraft.
- Dow Chemical (dow) and Shanghai-based bike-sharing firm Mobike signed a memorandum of understanding to develop lighter-weight and more environmentally-friendly Mobikes.
- Drylet agreed to form a joint venture with Nanjing Hoyo Municipal Utilities Investment and Administration for wastewater treatment in China. Hoyo Municipal Utilities Investment and Administration will also become an equity investor in Drylet.
- Software company SAS (sasdy) signed a cooperation agreement with Shenzhen Zhenghong Technology to establish the Big Data Innovation Center for Smart Manufacturing in Shenzhen.
- Caterpillar (cat) and China Energy Investment Corporation signed a five-year strategic cooperative framework agreement covering future agreements for mining equipment sales and rentals, technology applications and product support.