LG Electronics Inc, the world's No. 3 phone maker, will invest 1 billion yuan (US$147 million) in China this year to expand distribution channels and on promotions in the world's biggest mobile phone market, the South Korea-based firm said on February 11.

LG has tied up with Telling and PTAC, two distributors, to expand its phone sales channels in China.

LG also aims to introduce 60 new phones in China this year, including touch-screen models and phones with high-quality 5-megapixel or 8-megapixel cameras.

"The slump in the economy is affecting every player in the industry but we need to grow in China. The demand for high-end phones here is still strong," LG said in a statement.

Rivals like Motorola and Sony Ericsson have laid off people or lowered their sales forecast amid the tough economic environment.

LG surpassed Sony Ericsson and Motorola's sales when it sold more than 100 million mobile phones globally in 2008, but trailed market leaders Nokia and Samsung.

In China, LG has 2 percent of the market and is No. 8. Nokia has 38.9 percent, Samsung 19.7 percent and Motorola 7.5 percent, said CCID Consulting, a research firm.

(Shanghai Daily February 12, 2009)