More China Parts and Car Deals

NEW YORK, Nov 12, 2003; Reuters reports that a Chinese trade group plans to unveil deals on Wednesday calling for millions of dollars of U.S.-made automobiles and components from General Motors Corp., Ford Motor Co. and other companies, to be sold to China, The Wall Street Journal said on Wednesday.

Separately, General Electric Co. will supply engines for 30 Boeing Co. 737 planes as part of a multibillion-dollar deal with several Chinese airlines, the paper reported.

Officials with the companies could not be reached for comment early on Wednesday.

The deals are part of a number of agreements expected to be announced this week and come at a time when China is under growing pressure to buy American and narrow its trade surplus with the U.S., the paper reported, citing people familiar with the agreements.

The agreements are expected to be announced in Detroit by a Chinese delegation headed by Vice Minister of Commerce Ma Xiuhong, the paper said.

GM and the Chinese officials could also announce formal approval of GM's plans to start selling Cadillac cars in China, by exporting vehicles from the U.S. and by shipping component kits to China for final assembly there, the Journal said.

Ford is expected to announce agreements to expand significantly shipments of vehicles to China, the report said.