The Shenzhen-based Huawei company will own 51 percent and 3Com 49 percent of the Hong Kong-based joint venture -- "3Com-Huawei".

Huawei will bring enterprise networking business assets, including LAN switches, routers, engineering, sales and marketing resources and personnel, and relevant intellectual property licenses to the joint venture.

Meanwhile, a press release by 3Com-California (United States) said the company will invest 160 million yuan in capital assets related to its China operations in the new joint venture.

"The 3Com-Huawei delivers a high-end extension to our existing products, allowing us to offer complete solutions to our customers," said Bruce Claflin, 3Com president and chief executive officer.

"Huawei is just the cooperative partner we want, considering its high-class management, technology and engineering," he added.

President of Huawei Ren Zhengfei also expressed his optimism about the joint venture. "The joint venture globalizes Huawei's emerging enterprise networking business much more rapidly, enabling us to create greater value for our customers," he said.

3Com is one of the world's major providers of networking products for enterprises of all sizes and also for public sector organizations. It is also one of the major communications equipment providers in China, the world's fastest growing market.

Huawei is one of the major communications equipment providers in China, involved in the research, development, production, sales and services of such products. The company devotes over 10 percent of its annual sales to research and development.

(Xinhua News Agency March 21, 2003)