Hitachi is to establish a joint venture with Beijing University of Technology next month, which will focus on the electronic government market in China.
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The company is aiming for sales of ¥5bn (£27m) in 2007 for the new company, Hitachi Beijing Tech Information Systems, which will be capitalised at ¥100m.
Hitachi will own half of the new organisation, with its Chinese subsidiary holding a further 10%. The remaining 40% is in the hands of a company owned by its Chinese university partner.
Two years ago Hitachi established an e-government showroom in Beijing with the university. The China Cyber Government Square centre was opened in October 2001 to showcase systems such as smartcard security, online tendering and electronic education.
Martyn Williams writes for IDG News Service