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Canon (China) Co Ltd, a leading global digital camera maker, set up its 16th subsidiary in China in an effort to tap the nation's second- and third-tier city markets.

Canon said it would build the new subsidiary in Qingdao, East China's Shandong Province, into its largest in Asia.

The Japanese company saw 30 percent sales growth in China in 2006.

(For more biz stories, please visit Industry Updates)