Travel News - China's order of 7E7 may be tied to the proposed Arm sales to Taiwan?

Just read an article in today's Seattle Times:

In summary:

A Chinese delegation is in Washington, D.C., to discuss a purchase of Boeing 7E7s, sources familiar with the talks said.

The two sides are close to reaching a deal, according to those sources, but the Chinese have brought up their strong opposition to U.S. arms sales to Taiwan as the central point of negotiations with U.S. officials.


Full article is at China Official Close to 7E7 deal (http://seattletimes.nwsource.com/cgi-bin/PrintStory.pl?document_id=2002161882&zsection_id=2002119995&slug=chinaplanes27&date=20050127)

Well, the Europeans blackmail over Shrimp and their A380, the US gets blackmailed over weapons... what a wonderful world...

China plays this game all the time.

They get honked-off at the US, they order a bunch of Airbus planes. When Europe yanks their chain, Boeing wins a nice order.

Europe is lifting a 15-year ban on sales to the mainland, so China Southern has promptly prepared to order five A380s and Air China ordered 20 A330-200s.

US-Sino trade is far too big a deal to be derailed by this. Shortly after the A380 deal is formally anounced, China Southern, China Eastern, and Air China will announce their combined 60-plane order for the 7E7.

I know it's nice to get some of that trade deficit back from the PRC, but as Tom Clancy said in The Bear and the Dragon, someone should remind the PRC that they need our dollars more than we need their cheap toys.

Of course, that was written 4 years ago, when we didn't need their dollars to prop up our budget deficit and our dollar...

I'm on the line with this one. I support arms sales to Taiwan, but I want Boeing to succeed as well.

Just heard on the radio that Boeing and China will announce an order tomorrow, so looks like the 7E7 deal has been signed with China Southern, China Eastern, and Air China. I imagine it will be for the rumored 60 planes (20 for each?).