Senate Approves Locke as Commerce Secretary

http://www.bloomberg.com/apps/news?pid=20601087&sid=aoVCORLkqr7g

Locke’s China Deals for Microsoft, Boeing May Draw Scrutiny

Feb. 26 (Bloomberg) -- Gary Locke, President Barack Obama’s pick to be commerce secretary, persuaded Chinese President Hu Jintao in 2006 to visit Seattle, where he was feted at the mansion of Microsoft Corp. founder Bill Gates.

Both sides benefited from the trip, arranged by Locke as an attorney specializing in China trade. Before Hu arrived, China agreed to require computer makers to load legal software on new machines, a key to unlocking the $3 billion market to the maker of Windows software. Days later, Redmond, Washington-based Microsoft announced plans to invest $3.7 billion in China.

Earlier, when he was governor of Washington state, Locke, now 59, helped lumber-company Weyerhaeuser Co. and aircraft maker Boeing Co. win business with China. As he seeks the new post, and as secretary should he be confirmed, Locke may find his deals seen in a different light by lawmakers, unions and U.S. factory owners who say trading with China poses more peril than promise.

Some manufacturer groups point to China’s record trade surpluses with the U.S. as evidence that the pro-trade policies of Locke and Ron Kirk, Obama’s nominee for U.S. trade representative, need to be realigned.

“We are in a different world now, and we need a total rethinking of our economic models,” said Alan Tonelson, a research fellow at the U.S. Business and Industry Council, which represents American-based manufacturers. “I hope Locke will be more flexible, but the jury is out.”