German retail giant Metro has announced that its electronics sales subsidiary Media Markt will establish a joint venture with Taiwan-based Hon Hai Precision Industry for electronics retail operations in mainland China.

The two companies plan to open the first Media Markt in Shanghai before the end of 2010 and they will develop over 100 outlets in mainland China in the next five years. With the opening of the Shanghai Media Markt store, China will become the 17th overseas marketplace for Media Markt. But China already has entrenched competitors from electronics retailers such as Gome, Suning, Dazhong, and Best Buy.

Media Markt and Hon Hai reportedly signed an agreement at the end of 2009 for the establishment of a joint venture, in which Metro owns a 75% stake and Hon Hai owns the remaining 25% stake.

Dr. Eckhard Cordes, CEO of Metro, said that China is a market that is full of opportunities and of strategic importance. With the entry of Media Markt, consumers in China will gain access to its innovative products.