PC giant Dell plans to invest a total of $125 billion in the Chinese market over the next five years, the company announced Thursday in Shanghai.
Michael Dell, the firm’s chair and CEO, said the huge investment shows Dell’s confidence in the Chinese economy.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at firstname.lastname@example.org.
In 2010 Dell announced that it planned to spend $250 billion on investments over the next 10 years in China, its second largest market outside the US.
Dell hasn’t yet clear that the corrent announcment is a part of the previous investment plan or a new investment for further growth.
The investment will be mainly used to support Chinese startup companies and innovative products, strength cooperation with enterprises in big data and cloud computing and establish research and development center in China.
Currently, China is the second largest market in the world for Dell. The firm has about 11, 700 retail stores in 2, 200 Chinese cities and towns which cover 97 percent of the market.
The company already employs almost 2, 000 senior engineers in its research and development team in China. It is estimated that the new investment will provide nearly one million new jobs.
Dell had also entered into a strategic partnership agreement with Kingsoft Corp of Beijing to co-develop and sell products related to big data and cloud computing.
The American IT giant announced that it would start its new Chinese collaborations with the state-owned Chinese Academy of Sciences, establishing an artificial intelligence and advanced computing lab.
The lab will be tasked with investigating application models for brain information processing, cognitive function simulation, and deep learning. That represents a tremendous opportunity for Dell to expand in China, where a large population now wants an enhanced tech experience.
The Internet has become a new engine for future economic growth in China and has a potential that is unlimited said Michael Dell the CEO in a prepared statement.
Dell has been in China for about two decades and, before it went private in 2013, saw annual sales in the country of roughly $5 billion.