China Trade On High Boeing’s $3 Billion Sale To The Asian Powerhouse Is A Leap Forward Toward A Vibrant Commercial Relationship.

Boeing Co. has been selling planes to China for a quarter-century, and its aircraft dominate the fleets of that nation’s airlines, but U.S. and Chinese leaders nevertheless trumpeted Thursday’s $3 billion sale of 50 jetliners as a milestone in their relations.

The Clinton administration hailed the Boeing sale as a product of patient diplomacy with China, while the Chinese held out tantalizing possibilities of more deals to come.

Standing in an ornate Commerce Department hall decked out in red, white and blue banners and balloons, Commerce Secretary William Daley said the aircraft deal “could be a turning point in U.S.-China trade.”

“It’s a strong signal,” he said, “that China wants to build a stronger commercial relationship with the U.S., one which is based on cooperation and mutual benefits. It’s a critical step in addressing our trade imbalance. The president’s policy of engagement with China is working - for both sides.”

The sale of jetliners by the Seattle-based company also is being touted by the administration as a boon to the domestic economy and an answer to critics who worry global trade is hurting American workers.

Left unmentioned was the deep disagreement between the United States and China over Chinese human rights abuses.

Behind Daley and smiling Boeing and Chinese officials was a sign that read, “Exports Jobs.” The words were next to a huge map of the United States covered with jets marking major aerospace factories.

Chen Guangyi, minister of the Civil Aviation Administration of China, said the ongoing purchases of U.S.-built aircraft - dating back to Richard Nixon’s historic trip to China in 1972 - “has had a significant impact on the Sino-American trade and commercial relationship.”

“This will not be the last (sale),” promised Bai Zhi Jian, president of the China Aviation Supply Co. “There will be more Boeing airplanes flying into China.”

Thursday’s deal was three years in the making and was pushed in countless lobbying efforts from the Clinton administration, starting with the president himself.

This year alone, Vice President Al Gore, Secretary of State Madeleine Albright, Daley, Washington state Gov. Gary Locke and many members of Congress all button-holed the parties involved. “The summit triggered this,” said Larry Dickinson, Boeing vice president for the Asia-Pacific region.

Potentially larger sales to China look probable.

Boeing has forecast the world’s most populous nation will need 2,200 commercial jetliners over the next 20 years, representing possible sales of $140 billion.

Those numbers reflect China’s continuing dramatic gains in airline passenger traffic - roughly 14 percent annual growth in recent years. Since 1980, China has moved from 32nd in total passengers carried to fifth, and early in the next century it is projected to be the largest commercial airliner market outside the United States.

Talking to reporters after the signing ceremony, Daley characterized the U.S. trade deficit with China - expected to total $44 billion by year’s end - as “out of control.” The secretary said while the Boeing deal was a small help in cutting that deficit, conducting business in China remains difficult and much remains to be done to open up that nation to more U.S. companies.