Siemens AG is establishing an advanced software research and development center this year in Hangzhou, Zhejiang Province, targeting the third-generation of mobile communication technology.
Hao Ruiqiang, chief executive officer of Siemens China, said the move is regarded as a marked step for the German conglomerate in preparation for developing 3G technology on China's mainland.
As China will issue standards and licenses on 3G soon, the R&D center will help promote the development of the new mobile communication technology in the country, Hao said.
Chinese Minister of Information Industry Wang Xudong said recently at a national information industry conference that the ministry would issue relevant policies for 3G this year.
He said China had made big success in 3G in 2004. The 3G network test organized by the MII had been completed.
Currently, China ranks first in the world in the size of its communication network and the number of subscribers.
From 2003, the number of mobile phone subscribers in the country has exceeded that of fixed phone users.
As one of the largest international companies in China, Siemens China won contracts of 41.8 billion yuan (US$5.05 billion) and its sales stood at 38.4 billion yuan for its 2004 fiscal year that ended on September 30, a 34 percent and 28 percent year-on-year rise respectively.
The company said it would invest 10 billion yuan in the market over the next few years and its China sales would jump to 50 billion yuan.