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Economy & Business

Boeing, Peabody Energy to benefit from China deals

boeingPhantom400UPIBoeingAircraftHandout.jpg
(UPI/Boeing Aircraft Handout)
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The Boeing Phantom Ray unmanned airborne system (UAS), just one of the models of aircraft Boeing produces, during an unveiling ceremony in St. Louis on May 10, 2010. Reports state China will announce deals today including one to buy 200 Boeing airplanes.

A senior administration official says China will announce deals Wednesday to purchase $45 billion in U.S.
exports, including a $19 billion agreement to buy 200 Boeing airplanes, according to the Associated Press.

The official says the deal will create 235,000 jobs in the U.S.

It is important to note, however, that these planes will be commercial aircraft. Moreover, the St. Louis division of Boeing, which produces military aircraft, is unlikely to benefit directly from today's deal.

China will also invest in U.S. exports from agriculture, telecommunications and computer companies.

China and the U.S. are to announce the deals during Chinese president Hu Jintao's state visit to Washington.

CEOs from several of the companies China is striking deals with, including Boeing and General Electric, will meet with Hu and President Barack Obama at the White House Wednesday.

The official spoke on the condition of anonymity in order to speak ahead of the formal announcement. 

UPDATE: 3:03  p.m. Jan. 19, 2011:

According to a White House fact sheet release, St. Louis-based Peabody Energy signed a “Memorandum of Understanding” with two Chinese companies to create two separate projects:

The first:

The second:

  • In China’s Xinjiang Autonomous Region.
  • With Yankuang Xinjiang Nenghua Company Limited MOU.
  • Would include an “ultra supercritical clean coal electricity generation project” and coal-to-natural gas conversion facility.
  • Fueled by a new open-cut coal mine.

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