Press Release

Gutierrez Witnesses Agreements to Expand U.S. Exports to China

BEIJING—Commerce Secretary Carlos M. Gutierrez today witnessed the signing of two commercial agreements in Beijing that will help facilitate over $100 million in U.S. exports to China. One agreement will help The Timken Company expand in China’s growing wind energy market. The second agreement between the U.S. Trade and Development Agency (USTDA) and China Eastern Airlines Corporation will expand training for China Eastern personnel and support General Electric (GE) Company’s supply of 34 new Boeing aircraft engines to the airline.

Gutierrez first witnessed the signing of an agreement between The Timken Company and Chinese heavy equipment manufacturer Xiangtan Electric Manufacturing Co., Ltd. (XEMC) to establish a joint venture in China to manufacture ultra-large-bore bearings for high-performance direct-drive wind turbines for the Chinese wind energy market. The joint venture is expected to contribute to China’s goal of generating 30 million kilowatts of power from wind energy systems by 2020, providing a renewable energy source for China’s rapidly expanding economy.

“These two agreements help position U.S. exports to China’s rapidly growing economy,” said U.S. Secretary of Commerce Carlos M. Gutierrez. “Timken’s partnership in China will provide $100 million in exports, while also helping China expand alternative energy, wind power, which helps the planet.”

The joint venture will build a new $38 million facility in Xiangtan, located in China’s Hunan province, to collaborate on the manufacture of main-shaft bearings for wind turbines. Timken will own 80 percent of the joint venture, which will include $110 million in initial U.S. export content. Construction of the new facility is scheduled to begin in early 2008.

Gutierrez also witnessed a signing in which the U.S. Trade and Development Agency (USTDA) awarded a $560,000 training grant to China Eastern Airlines Corporation in support of General Electric (GE) Company’s 34 new generation aircraft engines for the airline’s order of Boeing 787 aircraft. USTDA Acting Director Leocadia I. Zak and China Eastern Airlines’ Chief Pilot Shu Mingjiang signed an agreement to confer the grant.

“The development of the Chinese aviation sector has been critical to boosting jobs for the U.S. aircraft manufacturing sector,” said Gutierrez. “This agreement will help China develop its aviation sector infrastructure while growing demand for U.S. aviation goods and services manufacturers and providers.”

The USTDA grant supports the objectives of the U.S.-China Aviation Cooperation Program (ACP), an innovative public-private initiative linking the U.S. and Chinese governments and aviation industries in a multi-faceted program to promote technical, policy and commercial cooperation between the Chinese and U.S. aviation sectors. The grant awarded today will support those objectives by funding training for China Eastern Airlines personnel in management and leadership as well as in technical excellence and overhaul shop expertise.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, early investment analysis, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

Gutierrez also celebrated the Chinese approval of the 100th Wal-Mart China store and the grand opening of a Wal-Mart Supercenter in Loudi, Hunan Province, with China Minister of Commerce officials and Wal-Mart China CEO Ed Chan. Wal-Mart China imports more than 6,600 products from the U.S. for sale in its China stores.

Gutierrez is in Beijing to attend the Joint Commission on Commerce and Trade (JCCT), which will convene in Bejing tomorrow. The JCCT is a government-to-government consultative mechanism that provides a forum to resolve trade concerns and promote bilateral commercial opportunities. The JCCT is co-chaired by U.S. Secretary of Commerce Carlos M. Gutierrez and U.S. Trade Representative Susan Schwab with Acting Secretary of Agriculture Chuck Conner participating. Vice Premier Wu Yi of China is also co-chair representing China.