Cisco Systems Inc. is going to invest over $10 billion in China during the next few years. It is an expensive approach, which will be good for the government and the company will also continue competing with Huawei Technologies Co.

Cisco's investment deal, which has been sealed with China's state economy planner, has come in the middle of promotion of local firms by the government at the cost of American companies like Microsoft Corp and Qualcomm Inc. According to China, it was worried regarding the security of US technology since Edward Snowden disclosed details of undercover work by the National Security Agency.

The company's market share is falling in the networking business as a result of competition with Huawei and ZTE Corp. The company said that it is ready to form partnerships in China. According to Chief Executive Officer John Chambers, he is hopeful that Cisco will be benefited from better relations between the US and China.

According to James McGregor, chairman of the Greater China business for consultancy APCO Worldwide, "They probably had to do something dramatic. They're trying to find a way to continue to have a significant piece of this market".

Cisco had signed the deal with the National Development and Reform Commission. The same organization obtained a $975 million in fine from Qualcomm after it began an antitrust investigation.

On Wednesday, Cisco said in a statement that the $10 billion investment will lead to fund research and development together with creation of jobs. It will also increase innovation and equity investment. The company has also signed agreements for helping 100 colleges to undergo advance training.