BEIJING, March 28 (Xinhua) -- China's carmaker Dongfeng Motor Group and France's PSA Peugeot Citroen agreed on Friday to form a global strategic partnership to further cooperation.
The agreement was signed in Beijing in the presence of Dongfeng's CEO Xu Ping, executive CEO Zhu Fushou, and Philippe Varin, chairman of Peugeot's managing board and Carios Tavares, member of the board.
They agreed to strengthen cooperation in technology, research and development (R&D), manufacturing and overseas distribution.
The two plan to set up a R&D center in China and form a subsidiary responsible for PSA vehicle sales and their joint venture Dongfeng Peugeot Citroen Automobile Co,. Ltd. in Asia.
The two have targeted annual sales of 1.5 million vehicles for Dongfeng Peugeot Citroen in 2020, more than double the sales figure last year.
A strategic partnership committee will be set up to help draft detailed plans of the cooperation by the end of 2014.
China's market is the cornerstone for PSA's globalization. The market, currently the second largest one for the company, will grow into the most important market in 2015, according to Varin.
The move follows the signing of a deal between the two sides in Paris on Wednesday. Dongfeng agreed to buy a 14-percent stake in Peugeot for 800 million euros (1.1 billion U.S.dollars).
Dongfeng, the French government and the Peugeot family each own an equal 14-percent stake in PSA Peugeot Citroen and have equal voting rights.
It is among 21 deals signed between the two countries as Chinese President Xi Jinping is in France for a state visit.