HP announces R&D expansion in China

HP announces R&D expansion in China

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Hewlett-Packard (HPQ.NYSE) is tapping into China's engineering talent to develop global storage and networking products, as the computer maker prepares to open a research center in Beijing, Bloomberg reported. HP's CEO Leo Apotheker said the company wants to utilize China's R&D capabilities as it seeks to boost sales in other emerging markets. While the country's five-year plan has indicated greater investment in servers and networking gear, HP said it will also bolster investments in cloud computing and social media in China. Apotheker also announced that a new cloud computing center would be built in Tianjin and revealed expansion plans for its manufacturing facilities in Shanghai. HP's sales in BRIC (Brazil, Russia, India and China) countries increased 19% in the fiscal second quarter, accounting for 12% of revenue, or US$3.76 billion.