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UPDATE 1-Daimler, VW to sign China deals worth $5bln-sources

Published 01/06/2011, 09:36 AM
Updated 01/06/2011, 09:40 AM
TRY/EUR
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* More than half the volume of the deals goes to VW-sources

* Daimler confirms it to sign contracts on Friday

(Adds Daimler statement, details)

BERLIN, Jan 6 (Reuters) - German carmakers Daimler and Volkswagen will sign deals totalling $5 billion at a meeting with China's Vice Premier Li Keqiang on Friday, government sources told Reuters on Thursday.

Daimler confirmed it would sign contracts with the Chinese government on Friday but declined to make any further comment. No one at Volkswagen was available for comment.

The contracts would formalise deals already agreed on the import of passenger cars to China, Daimler said.

Li, who is on a three-country European tour, said on Wednesday China wants to develop the untapped purchasing power of its domestic consumers and hopes Berlin will support the expansion of Chinese companies in Germany.

Li is due to meet with Chancellor Angela Merkel when they are expected to discuss expanding bilateral trade valued at roughly $140 billion last year, or nearly 30 percent of China's commerce with the EU.

A newspaper report on Thursday also said China was ready to buy around 6 billion euros of Spanish debt.. (Additional reporting by Frankfurt Newsroom; Editing by Greg Mahlich) (Reporting by Rene Wagner; Writing by Annika Breidthardt; Editing by Greg Mahlich)

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