Chinese fuel injector firm Wuxi Weifu said it was entering into a JV with German engineering firm Robert Bosch Corp to make diesel nozzles for car and truck engines.
Bosch will pay RMB 5.94 billion (US$717 million) for a 67 percent stake in the Wuxi-based venture according to the Chinese partner.
Bosch is the strategic partner and the second-largest shareholder of Weifu, which is listed on the Shenzhen stock market.
China is planning to raise the proportion of vehicles using diesel from about 30 percent now to 35 percent by 2005.