Cisco Announces $16 Billion China Expansion
Network gear maker Cisco Systems on Thursday announced a multi-year, $16 billion series of initiatives to expand in China with investments in manufacturing, venture capital and education efforts.
"We're going to the next chapter for Cisco in China," Cisco Chief Executive John Chambers said at a news conference.
The ventures include a partnership with Alibaba Group, China's biggest online commerce company, to develop business services for small and medium-sized companies, Chambers said.
Other efforts include doubling Cisco's manufacturing in China, a venture capital partnership with a govenment bank and support for technology education.
The company says its total commitments in China to date are $8.5 billion.
Cisco and the government-owned China Development Bank will explore a joint $100 million program to provide capital and expertise for innovative Chinese businesses, Chambers said.
He said that would include companies in information technology, health care, communications and other fields.
Cisco and Alibaba agreed to explore collaboration in Web-based business services for small and medium-sized companies and expanding Alibaba's overseas market, the companies said.
San Jose-based Cisco is the world's largest networking equipment maker, now has more than 61,500 employees worldwide and $34.92 billion in revenue in the latest fiscal year.