CDC Games is launching a game division in the U.S. to compliment its operation in China.

CDC Games offers mobile and online games under a “free-to-play, pay for merchandise” model.

The new group, CDC Games USA, will act as a subsidiary under CDC Games International. The group has already signed an agreement with K2 Network, a provider of free games, under which K2 will consider publishing some times in the U.S.

Ron Williams, vice president of systems engineering for CDC Software, will serve as general manager of the new unit. CDC Software is a sister company of CDC Games. CDC Software and the game units are part of CDC Corporation.

“With the launch of our U.S. operations, CDC Games is well positioned to become an international leader in online games,” said Williams in a statement. “We have plans for exciting new games for the U.S. online games market and we expect the free-to-play model to exhibit the same potential for success that we have seen in China.”