China in talks with Airbus on possible $20b aircraft deal

Beijing, Mar 19 (Reuters): China is in talks to buy at least 150 Airbus passenger jets potentially worth $20 billion (£12.03 billion) when Xi Jinping pays his first visit to Europe as president at the end of this month, people familiar with the matter told Reuters.
In a broad-ranging deal that could help reset trade relations between China and Europe after a bumpy year, China is expected to buy more A330 passenger jets as talks advance to open Airbus's second major factory in the country.
The "cabin completion" plant for A330s would bolster Airbus's presence five years after the opening of its first final assembly plant outside Europe in the Chinese port city of Tianjin, where Chinese workers put together A320 jets.
The deal could also involve a decision to unfreeze the purchase of 27 A330s blocked by China during a recent row with the European Union over environmental policies.
"This visit to Europe by President Xi Jinping...will certainly beneficially promote the development of ties between China and the European Union," China's foreign ministry spokesman Hong Lei said when asked to confirm the aircraft order. "This will be an all-round development of relations."
A spokesman for Airbus, a subsidiary of Airbus Group , previously known as EADS, declined to comment. Spokespeople for major Chinese airlines including Air China , China Eastern  and China Southern  all declined to comment.
Both France and Germany are anxious to establish good ties with China's leader and announcements on the Airbus deal package could be made in both countries, European officials said.
The package could also include some A320 and A350 aircraft, people familiar with the matter said.
The sources stressed that the final size of the deal could change and would depend on last-minute talks. Previous state visits have included tough negotiations on the sidelines.
The sources declined to be named as the matter was confidential.