Dell to put all bets on red with investment of US$125bn over 5 years in China

10 Sep 2015

Dell is attempting to make a massive push into the Chinese market after announcing that it intends to pump US$125bn into the country over the next five years.

The announcement was made by none other than Dell’s chief executive, Michael Dell, as the company plans to increase its influence in the world’s second-largest economy.

According to Reuters, the US$125bn will actually contribute approximately US$175bn to the company’s imports and exports, while employing more than 1m people in the country.

With a base in the country for more than 20 years, Dell had announced as far back as 2010 its intentions to invest in the country, promising that over the course of 10 years it would spend US$250bn on procurement and other investments in China.

Meanwhile, last January, Dell formed a partnership with one of the country’s largest state-run organisations, the China Electronics Corporation, as well as the municipal government of Guiyang in the southwest of the country.

In a statement, Michael Dell wrote: “The internet is the new engine for China’s future economic growth and has unlimited potential. Dell will embrace the principle of ‘In China, for China’ and closely integrate Dell China strategies with national policies.”

He also added that Dell will look to grow its research and development team within China as part of this investment.

The company is effectively trying to become close to the major players within the Chinese governmental and business infrastructure at a time when it has fallen down the pecking order of desktop PC producers, with Chinese producers Lenovo top of the pile.

Dell PC image via Shutterstock

Colm Gorey was a senior journalist with Silicon Republic