Dell to expand in China

Dell Inc aims to expand in China joining hands with the Chinese Academy of Sciences to create an artificial intelligence lab, aligning with local companies for technology development and letting its venture capital firm to operate in the country.

Dell will create the lab with the scientific institute as it seeks to develop advanced technology related to cognitive systems and deep learning, according to the Round Rock, Texas-based company statement.

The maker of personal computers, software and data-centre equipment had also entered into a strategic partnership agreement with Kingsoft Corp of Beijing to co-develop and sell products related to big data and cloud computing.

''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,'' chief executive officer Michael Dell said in the statement.

The closely-held company is expected to invest over $125 billion over the next five years.

Rival Hewlett-Packard revamped its China strategy over the past year, as it sold a majority stake in its local server, storage, and networking business to a group backed by Tsinghua University, as also as beginning to co-develop data-centre servers with Foxconn Technology Group.

According to the world's third-largest maker of personal computers, the investment would  contribute about $175 billion to imports and exports, sustaining over one million jobs in China.

"The Internet is the new engine for China's future economic growth and has unlimited potential," Chief Executive Michael Dell wrote in the statement.

Dell would continue expand its research and development team in China, he added.

The company announced in 2010 that it planned to spend $250 billion on procurement and other investments over the next 10 years in China, its second largest market outside the US.

The company took the third spot in global PC shipments in the second quarter after Lenovo Group Ltd and Hewlett-Packard Co, research firm International Data Corp said.