Consumer electronics chains Yongle and Dazhong announced that they had set up a joint venture to open stores in areas where they both were weak, National Business Daily reports. The two companies each contributed 50% of the financing; the joint venture will conduct business independently of the two parents. Xi'an and Qingdao will be test markets. Dazhong is weak in most large cities except for Beijing, where it has a 50% market share. Yongle is stronger, and says that partnering with the weaker Dazhong has strategic benefits for the company. An industry analyst says that the partnership will help Yongle compete with Gome and Suning, which have a more national presence. Pei Liang, secretary general of the country's association of chain stores, said that while consumer electronics is the most developed sector out of the nation's chain stores, it is relatively unbalanced. Any international company that enters the market, such as Best Buy, which is preparing to open stores in China, stands a chance of severly upsetting the current order. Link: http://www.nbd.com.cn/admin/module/news/newsFile/2005121524512.htm