China trades goods, influence for satellite launches

* China in satellite launch deals with developing nations

* Deals believe to be mostly barter-type exchanges

* U.S. restrictions block most commercial satellite launches

By Doug Young

HONG KONG, Nov 9 (Reuters) - Excluded from much of the lucrative satellite launching business by technology transfer restrictions, a resource- and influence-hungry China has found its niche: building and launching satellites for developing nations.

In the last three months, China signed deals to build and launch satellites for Pakistan, Laos and Bolivia, said Philip Balaam, Asia regional sales and marketing director for Arianespace, one of the world's few commercial satellite launchers, which is 30 percent owned by France's EADS (EAD.PA).

Earlier this year, China also signed a deal to launch a satellite for Nigeria to replace one it built and launched for the African nation in 2007, but which later ran into technical issues.

China also launched a satellite for Venezuela in 2008, but that, too, may be having problems, Balaam said on Monday. Neither the Chinese or Venezuelans have confirmed any difficulties with that programme.

China's approach to the satellite business differs from the mainstream in another respect -- its use of barter arrangements.