China Telecom and France Telecom signed a deal in Beijing Thursday on the establishment of a joint research and development center in Beijing as a first substantial step of cooperation.

Under the memorandum of understanding on forging the long-term strategic partnership for cooperation signed by the two telecommunications giants, both sides will contribute 20 million euros to a planned Beijing-based research and development center, which will be the starting point for cooperation between the two companies.

Leading officials of the two companies acknowledged that the center would be used for testing new, sophisticated technology and facilities, developing new businesses and application integration, cooperation in equipment procurement to reduce costs, and personnel exchanges.

Xi Guohua, Chinese Vice-Minister of Information Industry, said China is committed to creating a better environment for international cooperation in telecommunications field in line with its promises to the World Trade Organization and relevant Chinese laws.

(Xinhua News Agency June 17, 2004)