Dell To Drop $125 Billion In Cold Hard Cash On China To Expands Research And Development

Michael Dell is no longer beholden to shareholders after taking the computer company he founded private two years ago. As such, he's free to invest more than $125 billion in China over the next five years as part of his "In China, For China" 4.0 strategy announced today without having to worry about how it might affect the company's stock price.

The massive investment will continue to expand and enhance Dell's research and development team in China, Dell's second largest market for PC sales. It will also contribute some $175 million to imports and exports, which in turn will sustain more than 1 million jobs in the country.

Michael Dell

"China and the United States are among the countries where the information industry is developing the fastest, resulting in the most vibrant enterprises," said Mr. Dell. "The Internet is the new engine for China’s future economic growth and has unlimited potential. Being an innovative and efficient technology company, Dell will embrace the principle of ‘In China, for China’ and closely integrate Dell China strategies with national policies in order to support Chinese technological innovation, economic development and industrial transformation."

Dell currently employs nearly 2,000 senior engineers in China. In addition to expanding its R&D team in the country, the investment will help to further develop a R&D center for end-to-end solutions specifically intended to serve the Chinese market.

The PC maker has a major retail presence in China with almost 11,700 stores cover 97 percent of the market. That includes over 100 retail stores for Alienware, the gaming brand that was once a standalone boutique builder.