Cisco executive Daniel Scheinman smiles as he signs papers of agreement in San Francisco May 9, 2007 during a formal signing ceremony between US and Chinese companies. [AP]

'Buying mission'

China kicked off its latest 'buying spree' Wednesday in San Francisco with a commitment to buy $4.3 billion in US technology and equipment.

Hoping to ease tensions raised by the massive trade imbalance dividing two of the world's economic powers, China has periodically come to the United States on "buying missions" to demonstrate the country's willingness to import more goods and services.

The deals primarily involved computer software, semiconductor and telecommunications companies. The list of US beneficiaries included high-tech bellwethers Microsoft Corp, Oracle Corp, Cisco Systems Inc and Hewlett Packard Co.

California Lt. Gov. John Garamendi hailed the agreements as an "important step in furthering the deep relationship between this state, this country and China."

Special coverage: China-US Trade Related Reading: China to buy $4.3bn in US technology A delegation of Chinese business leaders committed to buying US$4.3 billion in US technology, hoping to ease a friction to the trade imbalance between the two countries. Related Stories: China's trade surplus large but slowing in '07 Paulson: Wu Yi is 'force of nature' China to become world's 2nd largest traderAmCham: Trade gap not the full picture Key figures: 43%: 43% rise in 2007 trade surplus Tenfold: Surplus soars tenfold

To underscore China's resolve to explore more US investments, executives from more than 200 Chinese companies are meeting with their US counterparts in 24 cities scattered across 23 states, said Ma Xiuhong, vice minister of China's Ministry of Commerce.

She met with Gov. Arnold Schwarzenegger at the state Capitol on Wednesday, and the governor later said California had nearly doubled sales to China. California exports to China totaled nearly $10 billion in 2006, Schwarzenegger said.

"The marketplace is now the whole world, and that offers tremendous growth potential for our companies, but our competition is also worldwide," Schwarzenegger said in a prepared statement.

Already boasting the world's largest population, China has become an increasingly attractive market for makers of high-tech gear as the country's rapid economic growth feeds the demand for more powerful computers and more sophisticated mobile phones.

1

2