Sunday, November 20 2005 14:49 Hrs (IST) - World Time -

Beijing: Amidst President George W Bush's China visit, Beijing today (Nov 20, 2005) ordered 70 US-made Boeing aircraft worth four billion dollars, which will help, reduce Washington's ballooning trade deficit with the Communist trading giant.

The China Aviation Supplies Import and Export Corporation signed a general purchase agreement with Boeing to buy 70 B737-700/800 aircraft. Boeing will deliver the 737-700 and 800 models between 2006 and 2008.

The signing in Beijing is part of a broader deal to supply 150 737-aircraft, but the arrangement for the other 80 planes will be after 2008 and has not yet been finalised, company officials said.

Both sides signed an agreement on the mega sale here ahead of Chinese President Hu Jintao's talks with visiting US President. The deal is also expected to ease severe domestic pressure on Bush on the trade front since The US is suffering a huge trade deficit with China. Aircraft exports by the United States could help offset a ballooning trade deficit with China, which could top 200 billion dollars this year, analysts said.

The contract also widened Boeing's lead over Airbus in the world's fastest-growing market for commercial jets.

Chinese airlines may buy 2,293 planes valued at 183 billion dollars in the next 20 years, as the 7.3 per cent annual growth rate of air traffic beats the global average of 5.2 per cent, according to estimates.

"China will need 2,600 planes in the next 20 years and the vast majority of them will be single-aisle planes" like the 737, a Boeing official said.