The systems-integration showcase opens in December 2003. The facility will be among the $200m (£125m) in projects that HP will launch in China by 2007, according to a report by Reuters news agency.
Siaou-Sze Lien, senior vice president for HP Services Asia Pacific, said in the statement that the new centre is an integral part of the company's strategy to strengthen its position in IT services in China.
China, which will spend about $4.4bn on IT services in 2003, is set to be the largest IT services market in Asia Pacific by 2005, according to the statement.
The financial services and telecommunications sectors are expected to lead the market in IT services spending, and expectations are that the market will continue with its strong growth as the country's financial services industry moves to full liberalisation by 2007.
Besides competing with global players like IBM, HP competes with Chinese vendors such as Digital China and Legend in China's burgeoning IT services market, says market researcher International Data Corp (IDC).
Local firms command a dominant market share in the mainland and now account for over 55 percent of China's total IT services market, compared with less than 45 percent in 1999, reported the IDC's recent study in March this year.
These companies enjoy relatively low operational costs and have strong market penetration, due to their established sales and support networks and local market knowledge.
Recently, HP and China-based Linux distributor Red Flag teamed up to establish an HP-Red Flag Linux laboratory in the HP's existing facilities in Beijing to develop and market Linux software to companies in China, and later, globally.
