Siemens is in talks to inject information-technology products and know-how into its telephone switching equipment production venture in China, according to its investment partner Beijing Enterprises (Holdings). The proposal was aimed to bolster the competitive edge of the mainland joint venture, Beijing International Switching System Co (BISC), in light of falling profits and growing competition in the switching equipment market in China, said Beijing Enterprises' vice-president and executive director Bai Jinrong. The German electronics and engineering group and Beijing Enterprises each own a 40 per cent stake in BISC, one of the mainland's largest telephone switching equipment providers. The balance of 20 per cent is owned by a number of Beijing-based, state-owned parties. All shareholders in principle have agreed to inject more of Siemens' technology products and know-how into BISC, Mr Bai said. 'But what kind of assets to be injected, how to inject, and the pricing of the proposed transferred assets, are still under discussion. 'No decision has been made so far,' he said. Mr Bai declined to elaborate, saying shareholders were not allowed to disclose details under the confidentiality agreement. BISC makes and sells EWSD ports - the digital switching system designed by Siemens - with fixed-line operator China Telecom as the anchor tenant. Last year, it sold a record high of 11.7 million EWSD ports and generated profit of HK$408 million.