Gateway is to sell its laptops, desktops and displays in China, after the PC maker teamed up with Digital China for its first foray into Lenovo’s home territory.

Digital China was once part of the Legend Group, which split into Digital China and Lenovo Group. Digital China has the sole distribution rights for Gateway products in China, and will also take care of customer service and support.

Gateway gear, which famously comes in black and white Holstein cow boxes, can already be found in malls and retail stores throughout China, Gateway said, including Best Buy Co’s flagship Shanghai store.

It’s the latest move by Gateway to expand sales internationally following a drop in its PC shipments in the United States. Its shipments for the second quarter fell to 965,000 PCs, from 1.04 million during the same quarter in 2006, according to statistics from IDC.

Last month Gateway landed a deal with Tesco to sell computers through the British retailer’s stores in Eastern Europe. Tesco already sells Gateway PCs at some of its UK retail stores.