SHANGHAI, Dec. 13 (AP) -- IBM and a Chinese computer maker have set up a joint venture to produce server computers, the Chinese partner said.

The weekend announcement came days after Lenovo Group, China's biggest computer maker, said it was buying International Business Machines Corp.'s personal computer business.

In the latest deal, China Great Wall Computer Shenzhen Co. said its venture with IBM will be the Asian base for production of the U.S. computer giant's eServer xSeries.

The companies didn't release financial details.

Great Wall said it will hold 20 percent of the venture, while IBM will own 80 percent.

The venture also will produce OpenPower, a new server launched by IBM this year, Great Wall said.

Production at the joint venture is expected to begin in the second quarter of 2005, the newspaper China Securities Journal said Monday.