In a report by Bloomberg, Monday, Siemens said it was planning to invest US$1.2 billion, in China, in an effort to catch up with Nokia and Motorola.

The company has to date invested more than 655 million Euros in China, and aims to increase handset production by two-fifths by 2005 and double sales there in five years, the chief executive, Heinrich von Pierer, said at a briefing in Shanghai. Siemens believes that demand for telecommunications, power equipment and transportation in China will increase earnings growth as sales decline in Europe and other markets.