Global computer manufacturer Dell (DELL) says that it plans to make a purchase of US$23 billion in computer components from China this year and will increase the purchase value to US$29 billion next year.
Dell says it does so to lower the cost for PC manufacturing. Michael Dell, CEO of Dell, told local media that China is very important for Dell's global supply chain and Dell will make a total purchase of PC components worth up to US$70 billion from China from 2007 to 2009.
"Made-in-China" products are becoming increasingly popular among international manufacturers because of its big variety. Dell is not the only manufacturer that purchases from China to reduce its cost and keep competitive. In November last year, Cisco, one of the world's largest router, exchange and Internet equipment manufacturers, announced that it would bring its total purchase from China to US$16 billion in the coming five years.