The China branch of German conglomerate Siemens AG has announced that it will establish an advanced software research and development center this year in Hangzhou, capital of East China's Zhejiang Province, targeting the third generation of mobile communication technology (3G).

The move is regarded as a marked step for Siemens to make preparation for developing 3G in China, said Hao Ruiqiang, CEO of Siemens China.

As China will issue standards and licenses on 3G soon, the R&D center is believed to help promote the development of new mobile communication technology in China, Hao said.

Chinese Minister of Information Industry (MII) Wang Xudong said recently at the national information industry conference that the ministry would issue relevant policies for boosting 3G in China this year.

China has made big success in 3G in 2004, said Wang. The 3G network test organized by the MII has completed, which would promote the development of 3G.

Currently, China ranks first in the world in the size of communication network and number of subscribers. Starting 2003, the number of mobile phone subscribers in China exceeded that of fixed phone users.

As one of the largest transnational companies in China, Siemens AG China won contracts of 41.8 billion yuan (US$5.05 billion) and sales stood at 38.4 billion yuan (US$4.64 billion) in the 2004 fiscal year ending on Sept. 30, which rose 34 percent and 28 percent year-on-year.

The German giant said it would invest 1 billion euros (US$1.33 billion) in the next few years in the China market and the amount purchased from China would jump from 2 billion euros each year to 5 euros.

(Xinhua News Agency January 17, 2005)