Electronics giant Royal Philips Electronics n.v. of the Netherlands expects sales of 10 billion yuan (1.2 billion US dollars) in China by 2007.

Rudy Provoost, vice president and CEO of Philips consumer electronics section, made the forecast during a recent visit to Shanghai.

Provoost said Philips saw an average annual growth rate of 30 percent in sales in China in the last three years. Philips products - including TV sets, DVDs, home theaters, mobile phones and displays - are obtaining a growing niche in the China market, ranking among the top three international brands, he said.

Philips registered a turnover of 9 billion US dollars in China last year, exports accounted for 60 percent. Its purchase in China reached 3.2 billion US dollars last year.

Provoost said Philips has always committed itself to bringing the most advanced products, technologies and best services to China. Philips has poured 12 million euros to build its image in China and will invest more in the future, Provoost said.

Philips has also made progress in research and development in China, said Provoost. Philips set up the East Asia Research Lab, the largest strategic research center of Philips in the Asia-Pacific rim, in Shanghai in 2000. The lab has more than 70 researchers who are engaged in research of optical memory systems, digital TV, and wireless telecommunications.

Philips has also set up 15 centers to research and develop technologies concerning lighting, color TV sets, acoustics, semiconductor and medical treatment apparatus, Provoost said.

Philips products first entered China in 1920. It set up the first joint venture in 1985, making Philips one of the first groups of multinational corporations to enter China.

Philips has invested 3.4 billion US dollars in China and set up 35 joint ventures and businesses solely-financed by Philips and over 60 agencies.

It now has 20,000 employees in China.

Source: Xinhua