These moves appear to be aimed at winning over local governments and big business to their PC and IT services businesses.
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Dell is embracing the principle of, “In China, for China”, and will closely integrate with strategies of Dell China and national policies, said the prepared statement by Dell. The company already employs almost 2,000 senior engineers in its research and development team in China.
The maker of personal computers, software and data-centre equipment 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 announced in 2010 that it planned to spend US$250 billion on procurement and other investments over the next 10 years in China, its second largest market outside the US.
Dell hasn’t yet clear that the $125 billion investment is the part of the previous investment plan or the new investment for further proliferation.
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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. The PC maker has a major retail presence in China with nearly 11,700 stores cover 97 percent of the market.
