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Ericsson Sees Bright Future in China

Telecom giant Ericsson pledges to further strengthen its position in the Chinese market by increasing the company's and its domestic suppliers' investment in China from US$2.4 billion to US$5.1 billion, the company said Tuesday in Beijing.

Lars Ramqvist, Ericsson's chairman and CEO, revealed this as he announced the company's five-year plan for China.

Under the plan, Ericsson, together with its suppliers here, will increase their annual exports out of China from US$1.49 billion in 2000 to US$4.5 billion in 2005.

Two years ago, Ramqvist met Chinese leaders in Beijing, promising that Ericsson would double its investment in China to US$600 million by the end of 2000.

"We achieved that goal and Ericsson's export volume out of China this year is expected to exceed US$1.46 billion," said Ramqvist.

Ericsson purchased some US$1.8 billion of materials in China this year, he said.

The company will also raise investment in research and development and human resources from the current figure of US$290 million to US$572 million.

The plan, which will run from 2001 to 2005, was submitted by Ramqvist to Premier Zhu Rongji in their meeting Tuesday.

"China has become one of the four hubs of Ericsson's supply chain," said Ramqvist. "China now delivers products and services to customers around the world."

The supply chain has not only drawn foreign capital investment into China, but has also brought local enterprises into play. The inclusion of Sichuan-based Chengdu Cable into the supply chain is one example.

Sweden-based Ericsson, Finland-based Nokia and Motorola from the United States all have a major share of China's mobile phone market.

(China Daily 12/06/2000)

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