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To: straight life who wrote (25630)	3/31/1999 10:00:00 AM
From: Ruffian	Respond to of 152472

China> Minimize your IRA taxes, penalties. Free report. Salomon Smith Barney China to Buy $500 Mln in U.S. Telecom Goods Tomorrow (Update1) China to Buy $500 Mln in U.S. Telecom Goods Tomorrow (Update1) (Updates to add comment from Commerce Secretary Daley) Beijing, March 31 (Bloomberg) -- China's Ministry of Information Industry will sign contracts tomorrow in the southern city of Guangzhou to buy U.S.-made telecommunications equipment valued at about $500 million, executives at Motorola Inc. and Lucent Technologies Inc. said. The orders, coming at the end of a three-city visit to China by U.S. Commerce Secretary William Daley, include mobile telephone handsets and base stations and telecommunications software, said Kallen An, senior business executive in China for Motorola's cellular infrastructure division. Among the contracts is expected to be a ''very small order'' for Motorola and Lucent telecommunications equipment based on the U.S.-developed CDMA standard for cellular phones, An said. The order's ''influence is big but the dollar amount is quite small,'' An said. She and Lucent executives said details of the CDMA contract are still being settled. The U.S. has been urging China to approve the use of CDMA, or code division multiple access, technology, to give U.S. companies a bigger slice of one of the world's fastest-growing telecommunications markets. CDMA orders could also help boost U.S. exports and trim a trade deficit with China which reached almost $57 billion in 1998. ''The expansion of the CDMA would be a very positive thing for the Chinese and the American businesses and I would imagine a few other businesses around the world,'' Daley said at a press conference in Shanghai. China is already the world's second-biggest telecom market, with more than 135 million phone lines. Mobile phone subscriptions are expected to grow 80 percent this year, to 45 million. CDMA Vs GSM For now, CDMA use is restricted to small pilot projects set up in four Chinese cities. Each city is awaiting formal approval from the MII before the projects can begin commercial operations. China has given approval for its second-biggest telecommunications carrier, China Unicom, to set up its own nationwide CDMA network. The move could result in more orders for the technology's developer, San Diego, Calif.-based Qualcomm Inc., as well as for Lucent, Motorola, South Korea's Samsung Electronics Co., and Northern Telecom Ltd. of Canada. The dominant mobile phone technology in China remains GSM, or global system for mobile telecommunications, a protocol developed in Europe. Finland's Nokia AB and Sweden's Ericsson AB, the biggest suppliers of GSM equipment, say China, including Hong Kong, is their biggest single market. GSM-standard hardware will also be included in tomorrow's contracts. An said Motorola will announce two big orders for its GSM base station equipment, but declined to specify the value of the contracts. The CDMA contracts have generated controversy because of the Chinese military's investment in the company operating the four pilot projects. The four trial CDMA networks, in Beijing, Shanghai, Xi'an and Panyu in Guangdong province, have been built by a joint venture between China Telecom, the biggest telecommunications operator in China, and Great Wall Mobile Communications Co., a company controlled by the People's Liberation Army. During stops in Beijing and Shanghai, Daley said it is not clear if the CDMA contracts would be signed tomorrow. A Lucent official, who declined to be named, said the CDMA contracts might end up being postponed for at least a week. Clinton administration officials hope to avoid giving any appearance of cooperation with the Chinese military. The issue has become more sensitive following recent allegations that China's military stole nuclear weapons technology from the U.S. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.