China signs giant Airbus deal as Merkel visits

China inked a giant aircraft contract with European manufacturer Airbus Thursday, as German Chancellor Angela Merkel began a visit with European leaders increasingly competing for market share in the world's second largest economy.

 Merkel's trip comes between a high profile visit to Britain by Chinese President Xi Jinping earlier this month, when he stayed at Buckingham Palace in London, and ahead of a trip to China by French President Francois Hollande next week.

 China is the European Union's largest trading partner and several major EU countries including Germany, Britain and France are wooing the country in the hope of winning business and becoming hubs for the growing overseas trade of China's yuan currency.

 The competition has made for awkward moments between the countries and their ally the US, China's greatest geopolitical rival, including their decisions to join Beijing's Asian Infrastructure Investment Bank despite Washington's opposition.

 Observers question whether the increased investment comes at the cost of softening stances against human rights abuses by the Asian giant, which has used political access as a cudgel to punish countries that criticise its behaviour.

 Airbus and state-owned China Aviation Supplies Holding Group signed a deal for 100 A320 aircraft, a spokesman for the manufacturer told AFP, worth $9.7 billion at list prices.

 They also confirmed 30 options for twin-aisle A330s, which were among a 75-plane deal announced in June ahead of a visit by Li to Airbus headquarters in the French city of Toulouse, the spokesman said.

 Airbus -- which has an assembly facility in the northern Chinese port of Tianjin -- is engaged in a fierce struggle with the US' Boeing for dominance in the crucial Chinese market.

 During Chinese President Xi Jinping's visit to the US last month, Seattle-based Boeing announced a record purchase of 300 aircraft worth around $38 billion.

 China is expected to add 6,330 new aircraft worth $950 billion to its commercial fleet by 2034, Boeing said in August in its annual China Current Market Outlook.