Cisco has announced a $10bn plan to spread its reach in China through a series of measures including jobs, research and development and education investment.
Cisco leaders signed a Memorandum of Understanding (MoU) with China’s National Development and Reform Commission and the Association of Universities of Applied Science (AUAS) to formalise the deal.
The deal with the AUAS will see Cisco invest in a four-year funding programme with 100 Chinese colleges to promote the teaching of applied science as recommended by AUAS.
Outgoing Cisco chief executive John Chambers was in China to sign the MoU, as was incoming chief Chuck Robbins. Robbins said that the investment will allow Cisco to play a leading role in the next stage of China’s development.
“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,” he said.
Cisco's push has the blessing of the Chinese government, and is a noteworthy development for the company and the country when considered against the backdrop of cyber security concerns between the US and China.
A recent hack of 14 million records related to US government workers was said to have originated in China, although the Chinese government has strongly denied the claims.
Furthermore, China has looked to curb the influence of Western technology companies since the Edward Snowden revelations of 2013, fearing that its hardware and software could have been used to spy on the nation.
However, it appears that the lure of a big inward investment from Cisco has been enough to convince the Chinese government that it is worth letting the firm operate in the country.
Whether the US government will be so thrilled to see so much investment going into a rival region is another matter.
FBI briefing US companies to dump Kaspersky, claiming intelligence prove it a 'threat to national security'
Kaspersky rejects FBI accusations that its products are a 'threat to national security'
But breached contractor says that it simply didn't have that much data
EE follows Three in threatening legal action against Ofcom - but for entirely different reasons
The One X is already sold out at several retailers