Dell to Invest $250 Billion in China over the Next 10 Years

China is the second largest PC market in the world and is predicted to replace the United States over the next decade.

Lenovo, the current market leader in China owns about 27 percent market share while runner up Dell owns about 9 percent. The gap might be huge but Dell is determined to close it. “This is not for the faint-hearted, and it’s only the first inning of a very long game,” said Amit Midha.

Dell is on track to spend $25 billion in China this year and is likely to spend $250 billion over the next 10 years if it continues spending at the current rate.

Besides laptops and desktops, Dell is also looking to expand its tablet market in China. Most of its sales are acquired through website and telephone orders. Corporate sales would also be Dell’s focus, particularly in Beijing and Shanghai.

“China, all of a sudden, is starting to become the centrepiece for us,” Midha said at the summit, held at the Reuters office in Beijing.

“If you think about it, be it design, manufacturing, procurement, sales, service support, there’s more and more that can be done more effectively in China than in many other places.”

There seems to be a lot of buzz on China recently. Groupon, Google and Facebook (Mark Zuckerberg is currently in China) have all made their moves or at least indicated their interest in China. Interestingly, the companies mentioned are all U.S based companies. It could be an indication that 2011 is a year we witness many bridges formed between the East and the West.