JT's CEO Graeme Millar said the UTS lab would give the Chinese company the potential to build, test and deploy services from Jersey as a European hub.

He said this was the latest part of the company's strategy to make Jersey a major technology centre.

The lab is at the Old South Exchange on La Route Orange in St Brelade.

Jack Lu, president, at UTStarcom, said: "JT's Gigabit Isles strategy, together with Jersey as a sound business location, made our decision to locate our research, development and training facility in Jersey an easy one."

Senator Sir Philip Bailhache, Jersey's assistant chief minister for foreign affairs said the new lab would send a "clear, positive message" that Jersey was a "world-class jurisdiction".

An agreement was signed by the two firms in June, when the then Chief Minister Terry Le Sueur visited China to promote closer ties with the country.