BANGALORE, India Rebuffed by the government in its efforts to enter the Indian market on its own, ZTE Corp. has signed a joint venture deal with India's MCorpGlobal.
India's Foreign Investment Promotion Board rejected ZTE's applications to increase the Chinese telecom supplier's equity investment in its Indian subsidiary. ZTE sought to import telecom equipment for wholesale trading in India.
The agreement was reportedly signed by Hou Weighuri, chairman of ZTE Corp., and B.K. Modi, chairman, MCorpGlobal, according to The Economic Times on Wednesday (Nov. 22). Hou accompanied Chinese President Hu Jintao on a tour of India this week.
The joint venture will import mostly ZTE equipment. Eventually, the partners plan manufacturing here. The partners will reportedly set up a local R&D base focusing on switching and radio equipment for the Indian and South Asian markets.