STAMFORD, Conn., BEIJING, and TOKYO, -- Xerox Corporation (NYSE: XRX), following through on a key tenet in its business turnaround plan, today announced an agreement to sell its China operations to Fuji Xerox Co. Ltd. for $550 million cash. The sale is scheduled to close December 20. Under the terms of the agreement, the manufacturing, sales and service functions in China and Hong Kong, including ownership of Xerox (China) Ltd. and Xerox (Hong Kong) Ltd. will be transferred to Fuji Xerox. The sale of Xerox China is part of an asset-disposition initiative outlined by Xerox Corporation in October. The company's business turnaround program also includes significant cost reductions and a renewed commitment to its core business operations. "Our asset disposition initiative, designed to raise $2 billion to $4 billion, is on track. The first of those sales, Xerox China operations, is ahead of schedule. And our $1 billion cost-reduction program is on target," said Paul A. Allaire, Xerox chairman and chief executive officer. "We will announce additional actions that will further improve our liquidity as they are agreed."