U.S. tech firm Cisco to invest $10 billion in China expansion
By Dominique Patton
BEIJING (Reuters) - Cisco (CSCO.O: Quote) plans to invest more than $10 billion in China along with local business partners over the next several years, the U.S. network equipment maker said on Wednesday, as it seeks to shore up its position against strong domestic rivals.
Cisco, the world's biggest maker of switching equipment and routers that run the Internet, announced the investment plans following high-level meetings between top executives and Chinese Vice Premier Wang Yang and other government agency leaders.
A statement issued by the Silicon Valley company provided the broad outlines of how it planned to invest but did not detail any specific spending or timelines for doing so.
It said in a statement it had signed a Memorandum of Understanding (MoU) with China's state planner, the National Development and Reform Commission, to expand investment.
This will be used to fund innovation, equity investment, research and development and job creation, Cisco said.
It also signed an MoU with the Association of Universities (Colleges) of Applied Science (AUAS) to advance technical training of information and communications engineers.
The company said it will invest in a four-year network engineer training program with 100 universities and colleges of applied science recommended by AUAS.
Cisco is looking to capitalize on initiatives promoted by the Chinese government including "China Manufacturing 2025", "Internet+" and its strategy to deliver more services as cloud-based Internet services. Continued...