China Sweetens Belligerent Us With $6bn Spree

China is attempting to shop its way back into favour with the United States with $6bn (£3.5bn) worth of contracts with American companies aimed at easing the growing trade friction between the two nations.

Thousands of jet aircraft and limousines have been snapped up or authorised for import in the past two days on a state-led spending spree which comes as congressmen lobby President George Bush to slap punitive tariffs on China.

Among the beneficiaries are Boeing, which announced a $1.7bn deal to supply 30 planes to five Chinese airlines, and General Electric, which clinched a contract to supply engines for a new Chinese civil aircraft which could lead to sales of $3bn over 20 years.

Reflecting the growing affluence of China's middle class - and the opulent tastes of state officials - a third deal, worth $1.3bn, permitted General Motors to export 4,500 top-of-the- range cars such as Cadillacs.

There were also openings for Ford and DaimlerChrysler, which announced new licences to export sport utility and luxury vehicles. This followed a relaxation of China's tax laws to make it easier for overseas firms to bring in their products.

Foreign manufacturers have been pushing for greater access to the Chinese car market which is expected to overtake Germany's this year to become the third largest in the world.

Whether the buying binge will be sufficient to win over public opinion in the US remains unclear. The record $100bn trade gap between the two nations could be a crucial issue in next year's US presidential election. Unions blame the weak Chinese currency for the loss of US jobs. A bill before Congress seeks a 27.5% tariff on Chinese goods.

The head of the Chinese delegation to the US which sanctioned the spending hailed the trip as a breakthrough, but Zhao Guobao called on his hosts to reciprocate by easing trade restrictions on parts deemed to have a military application. He said a recent decision to block the sale of US satellite technology to China was "discriminatory and unnecessary".