Chinese consumer electronics manufacturer Shanghai Video and Audio Electronics (SVA), is in talks with foreign partners about building a factory in France to make televisions.

Officials say television makers in China are moving some production to other countries to avoid high tariffs imposed on their products by Western countries.

The EU has duties of up to 14 percent on imports of assembled Liquid Crystal Display (LCD) TVs, while taxes on components are relatively low.

SVA has been shipping components to France to assemble LCD TVs there since May. It is also setting up a US$1.1 billion LCD plant in Shanghai with Japan's NEC.

(CRI June 18, 2004)