In accordance with the agreement, a management team, which willconsist of representatives from both companies, will be set up under the R&D center.

Both partners will be responsible for the training of personnel,technical support, as well as for providing the R&D equipment and facilities needed. They will focus on research and development of new core technologies suitable for China and the international market.

Sources from the Zhongxing company explained in detail that they would intensify cooperation with the American company in fields including photoelectronics, integrated circuits and digitaltransmission and would work together in the development of such products as the third-generation telecom platform, 40Gbps transmission equipment, 10Gbps online processors, and 40Gbps systems.

An executive in charge of Asia-Pacific Operations with Agere Systems is confident that his company's cooperation with ZhongxingTelecom will help promote the development of China's telecom industry.

Zhongxing Telecom has so far established four scientific research organizations overseas. It chalked up 14 billion yuan (about US$1.69 billion) in sales contracts last year, becoming one of China's major telecom equipment suppliers.

(People's Daily May 19, 2002)