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To: straight life who wrote (17219)	10/26/1998 8:56:00 PM
From: Ruffian	Respond to of 152472

Taichi, Last sentence says it all; Ericsson to double investment China Daily Swedish telecommunications giant [ Ericsson ] plans to invest US$300 million in China over the next three years, a senior company official said. The funds will be used mainly to enhance the capacity of its existing joint ventures and its research and development centre in Shanghai, said Michael Ricks, executive vice-president and chief operations officer of Ericsson's China business. The company has already invested US$300 million in China. Company officials said the new investment strategy will facilitate its plan to achieve sales of US$4 billion in China in 2001, up from the US$3 billion predicted for this year. China is Ericsson's biggest market. The company's sales volume in China stood at US$2.2 billion last year and accounted for 10 per cent of its total. China's telecommunications industry has witnessed dramatic development during the past two decades. Since the mid-1990s, growth of investment in telecommunications has outpaced all other industries, official statistics indicate. The momentum is still there, which bodes well for the business of foreign players like Ericsson, Nokia and Siemens. While fixed communication network facilities will continue to be in demand for China's drive to expand telephone access, advanced facilities and software for mobile communications and system management will find a growing number of clients in the country, Ricks said. Ericsson's eight joint ventures in China produce mobile telecommunications network equipment and cellular phones. Sales of the joint ventures made up 30 per cent of the company's sales in China last year. That ratio is expected to increase to 50 per cent this year and rise much higher in the future, Ricks said. Ericsson has become a well-known brand in China in recent years thanks to the popularity of its cellular phones. But Ricks said competition for cellular phones is becoming increasingly fierce in China, narrowing profit margins. (Copyright 1998) _____via IntellX_____ Publication Date: October 26, 1998 Powered by NewsReal's IndustryWatch ...back to top