Cisco is increasing its commitment to China with a $10 billion investment and enhanced strategic partnerships.
Launching the initiatives during a visit to Beijing by incumbent and incoming CEOs John Chambers and Chuck Robbins, Cisco signed a Memorandum of Understanding (MoU) with China’s National Development and Reform Commission to expand investment there.
Cisco stated that this investment will focus on innovation, equity investment, research and development and job creation to "promote the development of a high tech industry in China."
Cisco also signed an MoU with the Association of Universities of Applied Science, established by China’s Ministry of Education to train ICT talent. The US company will invest in a four-year programme with 100 universities of applied science.
"We look forward to furthering our digitisation efforts, contributing to talent development and GDP growth opportunities in China," said Cisco Chairman and CEO John Chambers.
"Cisco is deeply committed to our Chinese partners," said Cisco’s incoming CEO Chuck Robbins. "With these new partnerships and initiatives, Cisco is investing in the next generation of Chinese technology innovation, helping capture the opportunities presented by digitisation and committing Cisco resources to ensure success together."
In a UK exclusive question and answer session with CBR, Chambers praised China for its innovation and strategy, but claimed that geopolitical tensions remained an obstacle to Cisco’s business there.
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"The Chinese reinvent themselves remarkably effectively; they’re on their twelfth five year plan, it’s very well thought out. It’s a company that understands business and a company in transformation and if the meeting between our two presidents goes well here in the fall, I think you will see our joint cooperation and business pick right back up. If it doesn’t go well it won’t."
The full interview will be published on cbronline.com later today.
