To: w molloy who wrote (10034 ) 5/13/2000 10:42:00 AM From: brian h Respond to of 13582
WM, Thanks for the post. Some news to see the future of telecom. business. Motorola Plans $1.9 Billion Investment BEIJING (Reuters) - U.S. mobile phone giant Motorola Inc. (MOT.N.) has applied to Chinese authorities to build a $1.9 billion complex to produce semi-conductors and telecommunications equipment, the China Daily said on Saturday. If the planned complex in the northern city of Tianjin was approved, Motorola's total investments in China would increase to $3.5 billion by the end of the year, the newspaper quoted P.Y. Lai, president of Motorola (China) Electronics Ltd., as saying. But the scope of the complex would hinge on China instituting more favorable investment policies after its entry into the World Trade Organization, the newspaper quoted another Motorola executive as saying. China currently maintains a strict system of quotas on foreign mobile telecoms equipment, allowing market access in exchange for technology transfers and localization of sourcing and production. The system effectively bars imports of foreign mobile goods produced overseas, forcing companies to set up joint ventures with mostly state-owned Chinese partners. Foreign executives have said the quotas violate the spirit of the WTO, but believe it will be a few years before the system is phased out. News of the planned investment follows Finnish mobile phone maker Nokia Corp.'s (NYSE:NOK - news) announcement this week it will build its largest factory in China yet -- a joint venture with state firm Capitel Group to assemble handsets and network equipment. The Nokia plant is designed to be the centerpiece of a large new industrial park in Beijing the government hopes will draw $1.2 billion in investment from foreign and Chinese mobile technology firms that supply Nokia. Other foreign equipment suppliers, including Ericsson (LMEb.ST), Samsung (05930.KS) and Alcatel (CGEP.PA), have poured billions of dollars into China to grab a slice of the exploding mobile phone market. The market is expected to expand from 40 million subscribers to more than 60 million this year. Motorola has already poured $1.1 billion into an existing production base in Tianjin, the newspaper said. Brian H.