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Dell to invest US$125 billion in China by 2020
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DELL Inc will invest US$125 billion in China over the next five years, a record high investment in its second biggest regional market globally, on supply chain, sales expansion and product innovation.
Besides the US$125 billion investment by 2020 , Dell will introduce fund Dell Ventures into China for the first time to support innovation and establish a cooperation with Kingsoft to offer cloud computing service in China. The company called the new strategy as In China For China.
“The Internet is the new engine for China’s future economic growth and has unlimited potential,” said Dell’s chief executive Michael Dell during his visit to Shanghai today. “China has influenced the world’s economy in a big way already.”
Dell has more than 8,000 employees and three manufacturing facilities in China since it entered the domestic market in 1995.
China is “critically important” for Dell as more than 65 percent of Dell products, including personal computers, servers and monitors, sold globally are produced in China. With the US$125 billion investment in China, Dell is expected to contribute US$175 billion to China’s imports and exports and creating 1 million jobs in the world’s second biggest economy.
Dell fully supports and embraces China’s Internet Plus national strategy, it said. For example, Dell and Kingsoft, whose investors include Xiaomi’s CEO Lei Jun, signed a strategic partnership agreement on big data and cloud.
China’s Internet Plus strategy is in line with Dell’s business transform focusing more on business services such as cloud from focusing on sales of PC. The development of Chinese dot-com firms will also boost Dell’s sales of servers, analysts said.
Meanwhile, Dell will greatly expand distribution channels in China from about 11,700 stores now. It will open an end-to-end research center specifically for Chinese customer demands.
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