CCT Telecom, one of the world's biggest makers of cordless telephones, has launched one of China's biggest foreign-funded mobile-phone manufacturing joint ventures.
The Hong Kong-based company will link up with Haier Group, China's largest maker of home electrical appliances, to produce an estimated four million handsets this year. The business will have a turnover of US$400 million.
The mainland's mobile-phone market is expected to be one of the world's fastest growing over the next few years. The move is seen as part of plans by both companies to gear up for more competition ahead of China joining the World Trade Organisation, expected this year.
CCT claims it will be only the second such equity joint venture in the mainland, following H share Nanjing Panda Electronics' tie-up with Swedish giant Ericsson last year.
'The Chinese Government has shown efforts to encourage domestic handset manufacturing,' said CCT chairman Clement Mak Siu-tong. 'It is our understanding that it will not approve any more handset manufacturing joint ventures.'
Under the agreement, CCT will own 49 per cent - the maximum foreign ownership stake allowed in China - in Haier's Qingdao manufacturing plant, which started operations in September 1999.
