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Interview: Ericsson Upbeat About Chinese Market
World Telecom leader Ericsson on Thursday, December 7, expressed strong confidence in the fast-growing Chinese telecom market and promised to invest more and more in China.
"The telecommunications development in China is very impressive and moving very fast, as very much the result of China's telecommunications policies," Jan Malm, president of Ericsson (China) Company Ltd., told Xinhua during an interview.
The Chinese authorities will in the next five-year period give top priority to its telecommunications sector, which will secure the certainty and the strong confidence that China's market will grow very fast, said Malm.
As an indicator of Ericsson's confidence in the Chinese market, Jan said, the company has unveiled an ambitious five-year plan to increase its investment and its suppliers' investment in china from 2.4 billion to US$5.1 billion.
The plan also pledges to boost Ericsson's employees in China from 29,000 to 58,000 people, increase their annual exports out of China from US$1.49 billion in 2000 to US$4.5 billion in 2005.
Ericsson's businesses in almost all the telecom sectors in China are growing, with some sectors growing faster than others, said Malm. Taking the mobile business as an example, Malm said Ericsson had more than 30 million new mobile subscribers this year and is expecting a substantial growth in the number next year.
With China speeding up the development of its western areas, Malm believed his company also has much potential to tap in China's west, though the potential there is not as big as in the central and east regions.
According to Malm, Ericsson has already invested in the west area, setting up joint ventures in western cities such as Chongqing and Chengdu of Sichuan Province and even in Urumchi.
Though there are many market players in China and the competition is fierce, Malm said his company has its winning edges since it is by far the largest mobile infrastructure company in the world and has a strong presence in China.
With China's imminent entry into the World Trade Organization, Ericsson is making efforts to incorporate China's excellent production and human resources into its global production and R&D program, he said.
In its five-year plan for the Chinese market, Ericsson also promises to raise investment in R&D and human resources in China from the current US$290 million to US$572 million.
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