SHENZHEN, China – June 4, 2009 – Cisco today signed a memorandum of understanding (MOU) with the Shenzhen municipal government at the Shenzhen Wuzhou Guest House. Along with Xu Zongheng, mayor of Shenzhen, and Jim Sherriff, chairman and CEO of Cisco China, Wu Hao from the Department of High-Tech Industry of China's National Development and Reform Commission (NDRC), Xu Qin, executive deputy mayor of Shenzhen, and Thomas Lam, vice chairman and president of Cisco China, were also present at the MOU signing ceremony today.
The Shenzhen municipal government and Cisco will launch a deep cooperation in research and development, talent cultivation, leadership building and information exchange over the next three years as outlined in the MOU. Cisco will strengthen the investment of procurement and supply chain management in Shenzhen with support from the Shenzhen government.
In accordance with the MOU, Cisco will provide training and support for enterprises in Shenzhen. The training will assist Shenzhen enterprises in leadership transformation, further enhance development opportunities for the cultivation of international managerial talent, strengthen Shenzhen enterprises' management of information, promote their capability in global operation and collaboration, and improve their global competitiveness.
Cisco, which ranked No. 57 on the Fortune 500 Largest U.S. Corporations list in 2009, is the leading supplier of networking equipment for the Internet. The company reported net sales of USD $39.5 billion for the full fiscal year ending July 26, 2008, and has committed to invest USD $16 billion in China over the coming three to five years. It has also agreed to enhance its cooperation with colleges, growth enterprises and relevant cities in China, as agreed under a separate MOU reached with NDRC in April 2008.
In order to implement the MOU with the support and guidance of NDRC, the Shenzhen city government and Cisco have reached a consensus on cooperation after in-depth consultation and signed the formal MOU today.
Cisco will draw on its global experience to assist Shenzhen in piloting sustainable urban development based on Cisco's Smart and Connected Communities initiative. Cisco will introduce networked communications and collaborative technology solutions to stimulate efficient urban administration, energy efficiency and emissions reduction as part of the drive for sustainable urban development in Shenzhen. Cisco and relevant R&D organizations in Shenzhen will also launch an initiative to advance development in the research, application and industrialization of next-generation Internet technologies, sensor networks and green technology.
"The national government introduced the Framework for Development and Reform Planning for Pearl River Delta Region not long ago, which provided a new momentum for the development of Shenzhen. The Overall Plan for Shenzhen Comprehensive Reform to match the framework was also officially approved by the State Council, indicating that the reform and opening up as well as economic and societal development of Shenzhen have entered a new stage," said Shenzhen Mayor Xu Zongheng. "As the country's first national innovation-oriented city, Shenzhen will actively work on the creation of an open-ended innovation system to strengthen international cooperation, to amass innovation resources, to energetically nurture and develop emerging industries such as the Internet industry, and to build a modern industrial system with Shenzhen's own characteristics."
"The comprehensive and in-depth cooperation between the Shenzhen city government and Cisco can help Shenzhen drive the innovation and development capability of its electronic information industry, improve the city's ICT application level, promote the development of the Internet industry, and accelerate the construction of Shenzhen as a national innovation-oriented city. At the same time, it can also help to promote the long-term development of Cisco in China, especially in Shenzhen," added Xu.
"Cisco is still very confident about the opportunity in China despite a challenging economic environment and will attach greater importance to China's strategic position in our global operations. We will go on to make good on our promise of investing USD $16 billion in the next few years in China, to help with the country's innovation and sustainability strategies, and to support the transformation of China's economy and industries," said Sherriff. "Shenzhen is the 'window' onto China's reform. And it is opening up as one of the most economically active and innovative cities in China. It's a great honor for us to cooperate with the Shenzhen municipal government."
Sherriff added, "This cooperation is also a very important step for Cisco in fulfilling its promise to China and an excellent implementation of the Cultivated Innovation Model Cisco announced in April this year, which is aimed at boosting local innovation through capital, technology, process expertise, incubation resources and leadership investments. In the future, Cisco will rely on its global management experience and leading technologies to help the Shenzhen municipal government promote industrial mechanisms for innovation, to further accelerate the sustainable development of Shenzhen, and to make greater contributions to the city's ICT initiatives, modernization and economic growth."