CISCO Systems Inc expects its China revenue to grow more than 25 percent annually in a few years, despite worries of a possible United States economic recession, John Chambers, the company's chairman and chief executive, said yesterday in Beijing.
He said the firm is confident of this growth because of its US$16 billion multi-year investment in China.
The United States firm's recent expansion moves included signing a Memorandum of Understanding with two government bureaus, a US$20-million investment to establish a talent training center with Peking University and the appointment of Cisco China's chairman.
"The next stage of our strategy for China reflects the country's importance to Cisco's global growth strategy," said Chambers. "In the new era, government support and talent training'' are important.
During Chamber's visit to China, Cisco will sign MOUs with China's National Development and Reform Commission and the Ministry of Commerce today, focusing on next-generation Internet, research and development (with a center in Shanghai), leadership training and business process outsourcing capabilities.
Leadership institute
Chambers also announced the firm will cooperate with Peking University to create the "Guanghua Cisco Leadership Institute" for training government and business leaders in the country.
Meanwhile, the company announced the appointment of Jim Sherriff, Cisco's senior vice president of global operations, as chairman of Cisco China, a new title.
Responding to questions, Chambers dismissed notions of the US economy greatly influencing the company's income. He believed the company would continue "gaining market shares," thanks to the growth of emerging markets like China.
Cisco announced in November it would invest US$16 billion within three to five years in China, and the figure is double the five-year investment since 2002.
Separately, Shanghai Mobile and the Shanghai Municipal Informatization Commission will today disclose a local wireless city plan which Cisco had discussed with local leaders earlier in Shanghai.