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Business News/ Companies / Cisco to invest $10 billion in China to create jobs, promote R&D
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Cisco to invest $10 billion in China to create jobs, promote R&D

The investment will center on creating jobs, research and development, innovation and equity investment

Cisco shares rose 0.8% to 28.93 at the close in New York. They have gained 4% this year. Photo: AFP Premium
Cisco shares rose 0.8% to 28.93 at the close in New York. They have gained 4% this year. Photo: AFP

New York: Cisco Systems Inc., the world’s largest maker of networking equipment, will invest more than $10 billion in China over the next few years, expanding more than two decades of ties there.

The investment will center on creating jobs, research and development, innovation and equity investment, the San Jose, California-based company said Wednesday in a statement from Beijing. Chairman and chief executive officer John Chambers, who is stepping down as CEO next month, and Chuck Robbins, his successor in that role, are meeting in the Chinese capital with vice premier Wang Yang and other government leaders.

“With these new partnerships and initiatives, Cisco is investing in the next generation of Chinese technology innovation, helping capture the opportunities presented by digitization and committing Cisco resources to ensure success together," Robbins said in the statement.

China can provide big opportunities for Cisco in terms of the country’s growth potential, said John Butler, a senior analyst at Bloomberg Intelligence.

“In China, there’s still a lot of greenfield opportunities as they call them — a lot of blank slates to build networks from scratch," Butler said. “China is the biggest of the emerging regions, so they really want to tap that."

The networking company also signed agreements to invest in a four-year programme with 100 colleges of applied science in China to advance training in information and communications technology, according to the statement.

Cisco shares rose 0.8% to 28.93 at the close in New York. They have gained 4% this year. Bloomberg

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Published: 18 Jun 2015, 08:55 AM IST
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