Cisco intends to collaborate with China Development Bank to invest in innovative Chinese companies leading the country's sustainable economic development.
The program was announced today at a press conference after a memorandum of understanding signing ceremony attended by Gao Jian, vice governor of the CDB and John Chambers, chairman and CEO of Cisco.
The joint initiative will focus on Chinese companies with strong growth potential who are deploying innovative technologies in a range of market segments, including information technology and communications, green technology, education and healthcare, and other priority areas that underpin China's long-term sustainable growth.
To manage the program, Cisco and CDB will establish a standing steering committee to oversee collaboration and decisions between the parties. Designated representatives of CDB and Cisco will hold regular meetings to review and facilitate potential opportunities and existing collaboration projects.
"Cisco has a long track record of driving IT market growth through investment in the innovation economy" said Cisco Chairman and CEO John Chambers. "By collaborating with the CBD – the key policy bank driving China's market-led and balanced development initiatives – we believe we can make a meaningful impact to support high growth companies in China that are supporting sustainable long-term development"
Cisco's contribution to the strategic initiative adds to the company's already sizable investments in China. Over the last several years, Cisco has invested over US$700 million in both direct and in-direct venture and private equity investments in China. These investments are in addition to Cisco's normal business operations in R&D, sales, service, capital financing, and supply chain sourcing in China, which the company estimates in excess of US$8.5 billion during the last five years.
