Legend Technology Development Corp, a subsidiary of ChinaÆs top computer maker the Legend Group, has jointed forces with Motorola to develop a new personal digital assistant to compete with 3ComÆs market leading Palm product.

Legend and Motorola are to launch the Palm Net, a PDA which incorporates wireless communication technology for internet and email capability. Based on MotorolaÆs existing Mobile Pad, a handheld PDA which allows Chinese character input, it will be the first of several projects the two companies will work on according to Legend chairman Liu Chuanzhi.

In a separate announcement, Motorola (China) Electronics Co Ltd said it had established the Motorola China Research and Development Institute in Beijing, its 18th research and development facility in mainland China and Hong Kong. It has committed $160m to the centers and says it plans to have 25 centers with a total investment of $220m within two years.

The moves show that it is business as usual for Motorola in China despite the threat of having its mobile phone manufacturing operations hamstrung by the protectionist lobby in the Ministry of Information Industry.