The world's leading IT contractor Foxconn is talking with the government of Henan Province in central China about opening some 2,000 chainstores, an attempt to diversify its business mode.

Officers of Foxconn Technology Group based in Guangdong Province have been negotiating with Henan's commercial authorities about establishing some 2,000 shops across Henan, selling IT products and home appliances, an official with Henan Provincial Commercial Administration told Xinhua Tuesday.

The chainstores, which will only be allowed to operate in the countryside of the province, are expected to enjoy preferential policies such as a subsidy of 6,000 yuan (885 U.S. dollars) for each shop and a 13 percent governmental subsidy to consumers who buy products of selected brands approved by the Ministry of Commerce.

The official said Foxconn plans to get some of the shops registered before October, which usually sees booming retail sales during the week long National Day holiday.

Foxconn's parent company Hon Hai Precision Industry Co. has registered to build two plants in Zhengzhou, capital of Henan, to produce cell phones and other IT devices.

Foxconn is the world's biggest electronics contractor. It makes high-tech products like Apple's iPhone.

Foxconn is not only expanding its production bases but also looking to tap the rapidly developing retail market of China's interior, said Shi Pu, professor with the Henan University of Economics and Law.

After coming under fire amid a series of workers suicides this year, the company last month announced wage hikes for workers in its coastal Shenzhen plant in Guangdong -- which will squeeze its profit.

"The company is seeking to transform itself. It is not only aiming to take advantage of the cheaper production costs but to also capitalize on the huge consumption market in the inland of China," Shi said.