The chief executive of i-DNS.net, Michael Ng, said expected faster growth of non-native English-speaking Internet user numbers meant the business of non-English domain name registration services had big potential.
"China's entry into the World Trade Organization will also induce more foreign firms to adopt a Chinese domain name to bolster their presence there." Mr Ng said.
According to i-DNS.net, the ratio of non-native English-speaking to English-speaking Internet users was projected to change from 40-60 last year to 60-40 in 2002.
Since its establishment in October last year, the firm has set up about 200.000 domain names for companies and individuals worldwide.
New Cyber has been appointed a reseller of i-DNS.net's technology in domain name registration for the Chinese version of ".com".
Although New Cyber is a three-month-old start-up, Mr Ng said its partner had demonstrated capability to introduce the right industry contacts to i-DNS.net.
The two companies plan to invest more than US$5 million in the next two to three years to build up a marketing network in China.
Mr Ng said although i-DNS.net did not have an exclusive co-operation arrangement with New Cyber in China, it had no intention of appointing many resellers, to enable the two to have a "more co-ordinated" operation.
In January, i-DNS.net appointed Hong Kong's No. 2 Internet service provider HKNet as a reseller for its service in the SAR.
New Cyber chief executive Sam Khamkoon said although the number of Internet users in China was expected to grow rapidly from the present level of more than 16 million, growth in the business-to-consumer and business-to-business sectors lagged behind that in more developed markets such as Japan.
However, he expected growth of its corporate domain name registration service to pick up when these sectors became more mature in the next few years.