Sunday, November 20 2005 17:12 Hrs (IST) - World Time -

Beijing: China today (Nov 20, 2005) displayed its growing economic might by ordering 70 aircraft from American giant Boeing during US President George W Bush 's visit, marking the biggest purchase agreement in the country's aviation history.

The China Aviation Supplies Import and Export Group Corporation (CASGC) signed a general purchase agreement with the Seattle-based Boeing Co. to buy seventy B 737-700/800 aircraft worth four billion US dollars.

Boeing will deliver the planes between 2006 and 2008. Both sides signed an agreement on the mega sale here ahead of Chinese President Hu Jintao's talks with Bush.

The deal is also expected to ease domestic pressure on Bush on the trade front. Aircraft exports by the US could help offset a ballooning trade deficit with China, which could top 200 billion US dollars this year, analysts said.

The signing in Beijing is part of a broader deal to supply 150 Boeing 737 aircraft. Eighty planes will be delivered only after 2008 and the deal yet to take a final shape, company officials said.

The agreement unfolded a promising cooperation future between China and the United States in aviation and other fields. China's economy has developed rapidly in recent years, so has the aviation industry.

"In the next five years, China will need more aircraft, vice minister of the National Development and Reform Commission," Zhang Xiaoqing said.

The agreement will promote Sino-US economic and trade development, the official sources said.