Siemens redoubles its efforts in China

Telecoms equipment maker Siemens is focusing more on the fast-growing Chinese mobile market, with moves to expand its business presence in the area and new deals in the Far East in the pipeline.

On the agenda for the German company are a $30m investment in a Shanghai venture and expansion of the group's stake in Beijing International Switching System Company to 60-70 per cent, an increase of 30 per cent, although when the deal would be concluded was unconfirmed, according to a report by Reuters yesterday.

The company has also landed two deals in the region, worth a total of $145m, to supply base stations for Chinese regular mobile networks.

While Siemens has staked a great deal on success in Asia – working with domestic companies to develop a Chinese equivalent to the two main flavours of 3G that will be used around the rest of the world and is thought to have invested around $500m in the country – the picture is not as bright as the group might like.

Siemens' share of the Chinese handset market has actually dropped substantially in recent months, and now only accounts for around five per cent – a stark contrast to the almost 15 per cent share the company boasted just two years ago.