Inspur Group and U.S.-based Cisco announced they have set up a joint venture and started formal operations in China.

According to the agreement signed by the two parties, the new joint venture is headquartered in Jinan, Shandong province. With registered capital of USD100 million, it is 51% owned by Inspur and 49% owned by Cisco.

The two parties said that the joint venture will maintain high investments in R&D. The JV will build network research and development centers in places where Chinese network engineers cluster and invest in the development of core network technologies and network application software.

In addition, the joint venture will follow four principles: China R&D, China made, China service, and China local customization.

They will enhance the research and development of Internet product technologies to provide technical services such as IT infrastructure, cloud services, data centers, smart city solutions, and big data products to the market.