The two companies signed a sales co-operation agreement in Shanghai on Thursday under which TCL will help sell Philips products through its gigantic sales network around China.

TCL will first set up sales centers for Philips products in South China's Guangxi Zhuang Autonomous Region, Southwest China's Guizhou Province, East China's Jiangxi and Anhui provinces and North China's Shanxi Province.

TCL will also be responsible for the after-sales services of Philips products there, said the agreement.

Zhang Yue, chief executive with the Philips Electronics China Group, said: "Philips is expected to further expand its sales in China in co-operation with TCL."

The co-operation agreement will help Philips products enter the five relatively backward regions of China more efficiently, with quality-ensured after-sales services, according to Zhang.

TCL is also expected to strengthen its sales network, one of the Chinese mainland's largest so far.

Sales agents of TCL will become more competitive by providing more diversified electronics products, said Li Dongsheng, chairman of the TCL board of directors.

Li said he believes that both sides will co-operate in other areas of China in the near future.

TCL, China's second-largest manufacturer of TV sets, has more than 15,000 sales agents and almost 20,000 sales establishments around the country, covering all prefectural cities.

(China Daily August 27, 2002)