Dell, Qualcomm, Brocade Pave the Way Into China via Partnerships
A broad array of U.S. tech vendors, including Intel, Hewlett Packard Enterprise and Cisco Systems, have announced partnerships in China, and many also have unveiled other investments in the country. Dell officials in September 2015 said the company would invest $125 billion in the China market over a five-year period, which will drive the vendor's "In China, for China" 4.0 strategy. Like other tech executives, Michael Dell has argued that future growth will come from emerging regions. "When you're talking about the next billion users, they're not going to come from developed markets," he said during an interview with foreign journalists at the Dell World 2014 show. "They're going to come from developing markets." Qualcomm's relationship with China has been complicated. The company last year agreed to pay a $975 million fine and change its business practices to settle an antitrust investigation by Chinese regulators. Qualcomm also has been working with Chinese device OEMs in the country to reach licensing agreements in line with the NDRC settlement. In addition, Qualcomm in 2014 said it was investing $40 million in Chinese companies and creating a $150 million fund for the Chinese market, and last year partnered with Huawei Technologies, Chinese foundry Semiconductor Manufacturing International Corp. and others to create the SMIC Advanced Technology Research and Development Corp., a joint venture to push R&D toward next-generation chips for both the Chinese market and abroad. Brocade officials said the alliance with Guiyang was only a step in the company's China strategy.
"As Brocade continues to expand our investments in high-growth markets such as China, partnerships with innovative local government entities are critical," Ken Cheng, CTO and senior vice president of corporate development and emerging business at Brocade, said in a statement.