Dell plans to invest $125bn in China over the next five years as it looks to expand in the world's second largest economy, its chief executive said today.
The company announced in 2010 that it planned to spend $250bn on procurement and other investments over the next 10 years in China, its second largest market outside the USA, and it was unclear if the $125bn was part of that investment.
However, the world's third-largest maker of personal computers said the investment would contribute about $175bn to imports and exports, sustaining more than one million jobs in China. The company also plans to expand its research and development team in China.
"The Internet is the new engine for China's future economic growth and has unlimited potential," chief executive Michael Dell wrote in a statement. "Dell will embrace the principle of 'In China, for China' and closely integrate Dell China strategies with national policies."
Dell has been in China for about two decades and in January it announced partnerships with state-owned China Electronics Corporation and the municipal government of Guiyang.
Those tie-ups have led the firm to realise that partnering was the way to operate in China, Marius Haas, Dell's president of enterprise solutions, said after the deals, adding that the company had become much more aggressive with that strategy.