U.S., China sign business deals, eye investment pact

By Doug Palmer

WASHINGTON (Reuters) - U.S. and Chinese companies signed 35 business deals in sectors ranging from automobiles to telecommunications on the eve of high-level trade and investment talks between the two countries.

The value of the contracts and investment agreements was more than $8.3 billion, the Chinese Commerce Ministry said in a statement at a U.S. Chamber of Commerce signing ceremony.

Meanwhile, the United Soybean Board said eight U.S. soybean exporters signed contracts on Monday in St. Louis to sell more than $4.5 billion worth of U.S. soybeans to China, which is already the United States' biggest soybean customer.

"In traveling through the United States, we have seen a lot of flooding, which makes us worry about this year's crop," Wu Yuquei, vice-general manager of the Jilian Grain Group Import and Export Co. said in a statement.

"These contracts comfort us by ensuring that we will have a reliable supply of U.S. soybeans in the fall," Wu said. The contracts signed on Monday apply to the 2008-09 soybean marketing year, the soybean board said.

General Motors signed a framework pact for "the sale and export of approximately $1 billion worth of vehicles, components, machinery and equipment to our flagship joint venture in China," GM Vice President Ken Cole said at the Washington ceremony.

The company, which last year became the first global automaker to sell more than 1 million vehicles in China, also plans to invest an average of $1 billion annually in China through 2010, Cole said.

Ford said it signed a deal worth more than $800 million that includes sales of more than 30,000 North American-built autos to China starting in 2009. Ford also will begin supplying transmission components and parts this year to its passenger car joint venture in China, the company said.