FOXCONN, the world's leading IT contractor, is in talks with the government of central China's Henan Province about opening some 2,000 chain stores.

Officers of Foxconn Technology Group based in Guangdong Province have been negotiating with Henan's commercial authorities about establishing some 2,000 shops across Henan, selling IT products and home appliances, an official with the Henan Provincial Commercial Administration said yesterday.

The stores, which will only be allowed to operate in the countryside of the province, are expected to enjoy preferential policies such as a subsidy of 6,000 yuan (US$885) for each shop and a 13 percent government subsidy to consumers who buy approved products.

The official said Foxconn plans to get some shops registered before October, which usually sees booming sales during the National Day holiday.

Foxconn's parent company Hon Hai Precision Industry Co has registered to build two plants in Zhengzhou, capital of Henan, to produce cell phones and other devices.

After a series of suicides this year, the company last month announced wage rises for workers in its coastal Shenzhen plant in Guangdong.