Xiamen Overseas Chinese Electronic Co Ltd (Xoceco), one of the largest local TV manufacturers, announced yesterday it has been selected as a long-term TV supplier for US Army and Air Force Exchange Service (AAFES), which serves the US military.

A contract has been signed between both sides which requires Xoceco to supply 45,000 high-definition TV sets in the first year - 2003.

The announcement was made after the US International Trade Commission (ITC) determined that the US television industry had been materially injured by imports of certain colour televisions from China and Malaysia.

The ruling gave the go-ahead to a further investigation in which US TV maker Five Rivers Electronic Innovations and two trade unions want to impose duties up to 84 percent on TVs from China.

Xoceco spokesman Sun Guangrong said this co-operation is strong proof to the competitiveness of Chinese-made TVs as the AAFES has very high standards.

Xoceco won the contract in the face of stiff competition from big names such as Toshiba and Samsung, Sun said.

Sun said increased exports of Chinese-made TVs to the United States would benefit consumers there.

Sun said even if the United States finally imposed a high duty on Xoceco products, the company will try to enter the US market through its overseas plants.

Xoceco was involved in the anti-dumping investigation although its name was not mentioned by the Five Rivers.

Sun said Xoceco had tried to get a separate ruling by answering the case voluntarily.

Otherwise, Xoceco will be automatically suffer from the high duty if the United States decides to impose it.

Xoceco exported 170,000 TV sets to the United States last year but it was not listed by Five Rivers as its products are all exported though bidding.

Zhou Tong, a spokeswoman from Skyworth, another major local firm, said the anti-dumping charge would not slow the group's worldwide expansion.

She expected the company's overseas sales to increase by 50 percent by 2005.

She said the company will open more subsidiaries and plants in foreign countries.

(China Daily June 19, 2003)