Two engine makers sign deals with China

The White House hailed the approval of the Chinese government to import $45 billion in goods from 12 states, including auto parts and hybrid bus systems.

The bulk of the U.S. exports are for 200 Boeing airplanes valued at $19 billion and were announced as Chinese President Hu Jintao makes a state visit.

Fast-growing China remained the world's largest auto market in 2010 as sales jumped more than 30 percent. About 13.8 million vehicles were sold in 2010 in China compared with 11.6 million in the United States.

The new deals include two U.S. engine makers.

Navistar Inc. said it has won central Chinese government approval for a $400 million, joint venture with the state-owned Anhui Jianghuai Automobile Company.

Navistar will export services and parts to be used in the manufacture of diesel engines and commercial trucks. The joint venture will develop, manufacture, market and sell heavy-duty trucks and light to medium/heavy-duty engines, primarily in China, the White House said.

The joint venture will be based in Hefei City, Anhui Province. Once production begins, Navistar predicts that many components will be sourced from the United States. Direct U.S. exports during the first year of the joint venture are estimated at $15 million, but are forecast to grow significantly over the next five years as production increases, the White House said.

Navistar estimated the net employment benefit of the joint ventures at 200 U.S. jobs, mainly in engineering.

Indiana-based Cummins Inc. said it has reached an agreement with Zhengzhou Yutong Bus Compay to jointly develop and commercialize hybrid power systems for the Chinese bus market.

The engine maker is presently a supplier to Yutong, and hopes to increase its penetration of the Chinese market by jointly developing and producing a hybrid bus primarily for the Chinese market, the White House said. Cummins estimates a potential of more than $500 million in annual sales.

Cummins said that up to 500 jobs could be created in the U.S. related to production, sales and service of hybrid systems for commercial vehicles for the U.S. and Chinese markets, the White House said. Cummins also expects an annual savings of 21,000 metric tons of greenhouse gas emissions.

Despite the deals, many in Congress want China to do more — especially to allow its currency to rise in value. They argue that Chinese manipulation of its currency has cost the United States thousands of jobs.

More than 80 members of Congress, including Reps. Thaddeus McCotter, R-Livonia, Hansen Clarke, D-Detroit, John Dingell, D-Dearborn, Candice Miller, R-Harrison Township and Gary Peters, D-Bloomfield Township, called on Obama to do more to pressure China.

In a letter released today, 84 members of Congress said China harms "our workers by putting U.S. companies out of business and impeding our economic recovery efforts."

McCotter urged China to change its behavior. China "must stop cheating to compete and start playing by the rules of international commerce," McCotter said.