Telecom Venezuela and Huawei team up

Telecom Venezuela and Chinese company Huawei Technologies Co. Ltd. will be embarking on a joint venture to produce up to 2 million mobile phones annually, AP reported.

Venezuela's top telecommunications authority announced Sunday that the Venezuelan-Chinese company will be producing mobile telephones in Venezuela come 2008, the report said.

Jesse Chacon, the telecommunications minister of Venezuela, said the mobile phones will be using GSM, the global standard for mobile communications. This use of GSM will allow the mobile phone users to access services around the world.

China and Venezuela have been establishing ties ever since President Hugo Chavez was elected in 1999. According to AP, Venezuela has been forging closer relations with Asian countries, while distancing itself from the U.S. because of political differences.

Previous deals include Venezuela's purchase of a Chinese satellite that would grant the South American nation autonomy in its telecommunications.

Shenzhen-based Huawei Technologies specializes in the research, development, manufacture and marketing of telecommunications equipment.