China to Buy 50 Airbus Planes For $3.5bn

China has signed a deal to buy 50 planes worth $3.5bn from Europe’s Airbus.

The agreement is part of a slew of trade deals signed by German Chancellor Angela Merkel at the start of a two-day visit to China.

An agreement on Airbus plane assembly in China was also signed, and Chinese Premier Wen Jiabao says his country would continue to invest in the European Union.

This is the first significant deal in China for Airbus, whose parent company is EADS, since a dispute between the country and the European Union over the Emissions Trading Scheme (ETS).

Effective from 1st January this year, the ETS charges airlines for the carbon they emit, however China and other countries say the system is not fair, as it charges airlines for the full journey, not just over European airspace.

© 2012 SAT Telecommunications Ltd.

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