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Plane, banking deals strengthen relations
By Hu Qihua and Xu Dashan (China Daily)
Updated: 2005-09-07 05:35

The European aircraft maker Airbus signed a deal to sell China Southern Airlines 10 A330 planes yesterday. And Britain's Standard Chartered Bank signed an agreement to take a 19.99 per cent stake, worth US$123 million, in Bohai Bank - China's first national joint stock bank since 1996.

The planes, worth about US$1.8 billion at list price, will be delivered in 2007 and 2008.

Iain Gray, general manager of Airbus UK, said the eight A330-330s and two A330-200s would supplement four A330-200s that China Southern had previously ordered.

The airliner sales will help protect 135,000 jobs in the United Kingdom, which makes the wings, landing gear and fuel systems, he said.

Si Xianmin, president of China Southern, said the 10 additional jets would increase his company's capability and flexibility, especially in domestic trunk and regional routes.

Standard Chartered Chairman Bryan Sanderson said: "We have been in China for 150 years. Now we're being allowed to do more and more."

The UK is the largest European investor in China, spending US$12 billion in the country by the end of last year.

At a breakfast meeting with Chinese investors yesterday, Blair predicted trade and investment between Britain and China could reach US$40 billion in the next five years.

Praising Sino-British co-operation in UN reform, anti-terrorism, trade, investment, science and culture, Wen told Blair yesterday that the two countries should expand their co-operation in all fields.

The two countries can co-operate to resolve global issues such as the UN reform, Millennium Development Goals, facilitating trade, WTO talks, poverty relief in Africa and world economy, Wen said.

Blair said the multi-level dialogue between the UK and China created a sound environment for promoting bilateral relations, and his country would further co-operate with China in a bid to promote trade and economic ties.

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