CHONGQING, China, September 11, 2009 - Cisco today signed a Memorandum of Understanding (MoU) with the Chongqing municipal government for a strategic relationship to advance Chongqing's IT manufacturing industry, spur innovation and R&D in green technologies and to develop Smart+Connected Communities solutions. The collaboration aims to support China's long-term strategy of green GDP growth, energy savings and emissions control. Cisco and the municipal government will work together to increase investment, support local innovation and sustainability, and accelerate the internationalization of local Chongqing enterprises.
Bo Xilai, member of Political Bureau of the CPC Central Committee and Secretary of the CPC Chongqing Municipal Committee, met with Cisco executives in Chongqing. Wang Hongju, mayor of Chongqing; Huang Qifan, executive vice mayor of Chongqing; Wim Elfrink, chief globalisation officer and executive vice president, Cisco Services; Owen Chan, president of Cisco Asia Pacific Theatre as well as Thomas Lam, vice chairman and president of Cisco China, were present at the MoU signing ceremony today.
The memorandum marks a milestone for Cisco to cooperate with a provincial government on Smart+Connected Communities in China. The announcement is a significant step for Cisco in implementing its innovation and sustainability initiative in China and also accelerates local innovation through Cisco's Cultivated Innovation Model.
Chongqing's long-term development plan is to become a connected city that has a high-speed information highway at its heart. This plan is driven by the construction of an advanced public information platform and the development of corresponding information application systems. This vision fits into Cisco's strategy of innovation and sustainability and its vision for building Smart+Connected Communities in China.
"Our cooperation with Cisco to transform Chongqing through Cisco's Smart+Connected Communities solutions will create a totally new business model for city management, as well as for the provision of city services," said Huang Qifan, executive vice mayor of Chongqing. "This will not only help to accelerate the internationalization process for companies in Chongqing, but also provide opportunities for the city's government agencies, businesses, and residents to experience what life can be like in a smart and connected city."
"We are honored to have the opportunity to work closely with the Chongqing government and local partners to create a smart, sustainable city of the future," said Wim Elfrink, chief globalisation officer and EVP, Cisco Services. "We believe the network can be the platform to improve economic development, environmental sustainability, and the quality of life for citizens. Our collaboration with Chongqing is a great example of the replicable Smart+Connected Communities model we are building for cities in China and around the world."
Cisco's cooperation with Chongqing will involve the following three major areas:
Chongqing as One of the First Smart+Connected Cities in China
Cisco and Chongqing will develop a Smart+Connected Communities Center in the city's key industrial park. Within Chongqing, Cisco's Smart+Connnected Communities solutions will help drive integrated city management, public and community services as well as energy savings and emissions control. The Center will provide technical support and services, test Smart+Connected Communities solutions and products, and serve as a model for the network infrastructure required for sustainable city development.
Supporting the Development of Chongqing's IT Manufacturing Infrastructure
Cisco has committed to support Chongqing in their development of a future local manufacturing base for telecommunications products. The parties have committed to collaborate on several initiatives to improve the local manufacturing and supplier base, infrastructure, and logistics. Preliminary estimates would put an approximate market value on the manufacturing production at as much as 10B RMB.
Supporting Green Technologies with R&D and Innovation
To support green technologies more effectively, Cisco will collaborate with Chongqing to build a Joint Research Laboratory for Green Technologies, focusing on innovation in wireless sensor networks and next-generation Internet. They will also establish the Cisco-Chongqing Green Technologies Innovation Center, which will accelerate the development and commercialization of green technologies, increasing cooperation between Cisco's research facilities in China and building local capability. Over the next 5 years, Cisco will further invest in local companies that display outstanding performance in promoting sustainable local economic development through green technologies.