The world's second-ranking PC vendor Acer and Chinese IT firm Founder Group Thursday signed a memo of understanding, under which the two companies will join forces to design IT products - including laptops, netbooks and mobile Internet devices, like Acer's newly-unveiled LumiRead e-reader - for the Chinese market.

According to the information forwarded by Acer and Founder, the deal, which will allow Acer to expand its market share in China, will largely focus on "business cooperation", and will neither involve an exchange of shares nor affect the independent functioning of either of the two brands.

Acer's plans to expand its foothold in the world's most populous market are strategically different from those for its earlier forays into the US and European markets, where the company largely depended on mergers and acquisitions. About the markedly different approaches, Acer's president and CEO Gianfranco Lanci said that China boasts comparatively more diverse partnership opportunities.

Meanwhile, admitting that the Acer brand has not met much success in China, Acer's chairman JT Wang said that the company intends improving its Chinese market share with the support of the country's government as well as partners like Founder.

The Acer-Founder partnership spells potential benefits for both the companies involved - while Acer will be able to use Founder's existing sales channels and after-sales service; Founder, in turn, will gain access to global markets.