China signs $3.5 bln deal for Airbus planes during Merkel visit

CHINA-GERMANY-AIRBUS:China signs $3.5 bln deal for Airbus planes during Merkel visit

China signed an agreement with Germany for 50 Airbus planes worth $3.5 billion as German Chancellor Angela Merkel began her visit to China, state news agency Xinhua said, the first significant Airbus deal with China since a dispute between Beijing and the European Union over emissions trading.

The dispute between Beijing and the EU had interrupted earlier deals worth up to $14 billion.

China's ICBC Leasing and Airbus, whose parent company is EADS , signed the deal for 50 Airbus A320 planes and another agreement about Airbus plane assembling in China, Xinhua said.

Industry sources said on Monday that Airbus had hoped to win orders of up to 100 A320 planes, potentially worth $9 billion.