Motorola to Invest 1.9 Billion Dollars in ChinaWith the approval of the State Council, China's highest governing body, Motorola is to invest another 1.9 billion US dollars in Motorola (Tianjin) Ltd.Motorola, the US's largest investor in China, will use a large proportion of the funds to set up a chip factory in the north China port city. China has issued preferential policies concerning integrated circuit producers. Those with an investment above 800 million yuan (US$96 million) will be charged only six percent of added value tax, instead of the normal 17 percent. Also, such enterprises are exempted from duties on imported raw materials, and they are allowed to change their profits into US dollars. Motorola sources said the 21st century will be an era of soaring growth for China's telecom industry, and that the company would like to expand its business in the country and further strengthen its cooperation with its Chinese partners. Motorola (China) puts most of its investment in its Tianjin company, to produce pagers, cellular phones and interphones. Motorola (China)'s sales volume last year was 30.9 billion US dollars-worth, with profits of 1.3 billion US dollars. |
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