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By Wang Xu (»Ê¹ÚÌåÓýapp Daily)
Updated: 2007-11-02 09:04

Cisco Systems Inc, the world's largest networking equipment maker, yesterday unveiled a US$16 billion expansion plan to boost its presence in »Ê¹ÚÌåÓýapp, one of the world's most dynamic telecom markets.

The plan includes expanding its procurement, manufacturing and research and development capacity, and increasing investment in »Ê¹ÚÌåÓýapp's education sector and high-growth companies through its venture capital vehicle.　　

"We are going to the next chapter in »Ê¹ÚÌåÓýapp," said John Chambers, chairman and CEO of Cisco. "The announcements underscore both »Ê¹ÚÌåÓýapp's strategic importance to Cisco's global operations and the broad range of growth opportunities presented by the market."

The plan, following a pledged investment of US$1.16 billion in India on Tuesday, underlines Cisco's increasing aggressiveness in cracking emerging markets. It pledged a US$1.16 billion investment in India within two years.

A large portion of the US$16 billion in »Ê¹ÚÌåÓýapp would be spent on procurement, which totaled US$7 billion in the past five years.

As part of the new initiative, Cisco said it will spend US$17.5 million buying into »Ê¹ÚÌåÓýapp's top e-commerce firm Alibaba.com, which is expected to launch an initial public offering in Hong Kong next Tuesday.

Cisco also signed a memorandum of understanding with »Ê¹ÚÌåÓýapp Development Bank to set up a US$100 million program to provide capital and expertise for high-growth Chinese companies. Cisco has invested more than US$700 million in Chinese start-ups over the past few years.

It also agreed to inject US$400 million into a wholly owned subsidiary in »Ê¹ÚÌåÓýapp that specializes in financing and leasing services.

The subsidiary, Cisco Systems Capital »Ê¹ÚÌåÓýapp, began operation in 2006, aiming to provide financing facilities to Cisco's customers in »Ê¹ÚÌåÓýapp.

"We are now seeing more and more innovations coming for the market," said Chambers.