Chinese telecom device maker ZTE Corporation plans to build a research institute project in Guangzhou and has already signed the project cooperation agreement with the local government.

According to ZTE, the total investment of this project will be no less than CNY5.6 billion, which exceeds the approval limit of the board. Therefore, this project and the related cooperation agreement are subject to the approval of its general meeting of shareholders.

With this move, ZTE plans to establish a research institute company in Guangzhou, which is positioned as the company's regional base, research and development center, and marketing center in South China. By integrating ZTE's related businesses in Guangzhou, this new company will focus on 5G and future communications, proprietary chips, smart city services, cloud services, big data, and new energy.

During a five-year period starting from the signing of the agreement, ZTE will invest no less than CNY5.6 billion in this project, of which the research and development investment should be no less than CNY3.5 billion and the project construction investment should be no less than CNY2.1 billion. This project is expected to be completed in 2021.