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Boeing signs deal with China

BEIJING, June 11 (UPI) -- Boeing signed up two Chinese companies to supply parts for its 7E7 Dreamliner jet, in a deal that the company hopes will bring Chinese orders for the aircraft.

Chengdu Aircraft Industrial Co. and Hafei Aviation Industry Co. will supply the aircraft's rudder and other parts. Boeing senior vice president Jim Morris said he expected his company to spend several hundred million dollars on parts produced in China over the life of the program.

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China Daily described the deal as a breakthrough for China's aviation sector. Morris said he hoped to have solid orders from Chinese airlines by the end of the year.

The 7E7 is Boeing's next-generation, fuel-efficient jet, scheduled for delivery in mid-2008.

Boeing's chief competitor in the China market is the European Airbus and its double-decker 555-seat A380.

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