Motorola to sign China deals worth USD2 billion

13 Jan 2004

Motorola is poised to sign equipment supply deals worth an estimated USD2 billion with several of China’s leading telecoms service providers, in a deal which marks a possible change in outlook towards US-based manufacturers by the People’s Republic. In the past North American vendors have complained that China’s slow pace of liberalisation has frozen them out of the telecoms sector, however Motorola is now believed to have won two significant contracts worth over USD1 billion with dominant cellcos China Unicom and China Mobile. Confirmation of the contracts is expected to be announced in a formal ceremony in Washington later today. Meanwhile, Intel is set to announce the signing of two contracts with Chinese PC makers Legend Group and Founder Technology Group, all of which comes hard on the heels of a press release from California-based UTStarcom last week in which the company said it had secured a deal worth USD200 million to supply broadband equipment to China Telecom Corp.