Dell bets on Chinese innovation with $125 billion investment

Dell's new "In China, For China" strategy includes investment in next-generation technologies and artificial intelligence.


Dell plans to invest $125 billion over the next five years in China, betting on the country's growing economy to provide alternative revenue sources beyond the dwindling PC market.

The PC maker's CEO Michael Dell announced Dell's new strategy in Shanghai on Thursday. The chief executive said the new "In China, For China" strategy will include an investment of $125 billion over the next five years, $175 billion contributing to imports and exports, and will also "sustain one million jobs through the ecosystem."

Dell said the investment demonstrates the firm's "long-term commitment to the Chinese market." China is Dell's second-largest market outside of the United States, and as PC sales to dwindle, it is critical that other avenues for business growth are explored.

China, thanks to a growing economy and increasing technological market, may turn out to be the ideal place to source new ideas, innovations and establish sound research and development into products which will keep Dell strong as consumer demand for traditional PC systems slides.

In a statement, Dell's chief executive said:

"China and the United States are among the countries where the information industry is developing the fastest, resulting in the most vibrant enterprises. The Internet is the new engine for China's future economic growth and has unlimited potential.

Being an innovative and efficient technology company, Dell will embrace the principle of 'In China, for China' and closely integrate Dell China strategies with national policies in order to support Chinese technological innovation, economic development and industrial transformation."

The investment plan for China also includes a heavy role for the firm's corporate VC arm, Dell Ventures, in pushing the strategy of "massive entrepreneurship and innovation by all," which will provide support for Chinese enterprises and entrepreneurs.

Dell also plans to expand its research and development team in the region, focusing on "end-to-end solutions" suitable for the Chinese market and working more closely with local partners in the fields of Big Data and cloud technology.

Dell also announced a new collaboration with the Chinese Academy of Sciences in establishing the "Artificial Intelligence and Advanced Computing Joint-Lab."

The lab will focus on the application of brain information processing and artificial intelligence, which includes "cognitive function simulation, deep learning, brain computer simulation, and related new computing systems," according to the company.

The world's third-largest PC maker said Dell fully supports China's Internet+ plan. Unveiled in March this year, Internet+ is the Chinese government's hope for promoting further economic growth through e-commerce and online services. Ironic, considering the country is also one of the worst when it comes to Internet censorship.

See also: China's 'Great Cannon': Taking censorship across country borders

Despite this, Dell says the company will fully support Chinese enterprises and startups specializing in storage, cloud computing, Big Data, data centers, mobility and security.

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