Cisco to invest $10b in China to help innovation

Source:AFP-Global Times Published: 2015-6-18 23:28:02

US technology giant Cisco announced Thursday that it will invest more than $10 billion in China in the coming years to support the country's efforts to "innovate and globalize."

Cisco signed a memorandum of understanding (MOU) with the National Development and Reform Commission, the country's top economic planning agency, to expand investment in China focusing on areas of innovation, equity investment, research and development and job creation, the company said in a statement.

The company, which entered China in 1994, also inked an MOU with an association of universities of applied science to train information and communications technology talent, it said.

The initiatives are worth in excess of $10 billion in total, which will be spent over the "next several years," the company said.

Cisco's routers, servers and switching systems are key units of global interconnectivity and help power the Internet.

"We look forward to furthering our digitization efforts, contributing to talent development and GDP growth opportunities in China," Cisco Chairman and CEO John Chambers said in the statement.

China's GDP expanded 7.4 percent in 2014, the weakest since 1990, and slowed further to 7.0 percent in the January-March period.

The programs "combine Cisco's strengths with the direction of China's industrial transformation" and is expected to help the country "innovate and globalize," the statement said.

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