In a bid to reduce costs as its biggest market, the US, faces a possible recession, Dell is looking at cheap parts from China.
Dell announced to journalists in a press conference in China that it is going to buy $23 billion of components from China this year and $29 billion in 2009.
"China is critical to Dell's global supply chain", founder and chief exec Michael Dell told reporters.
"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years", he continued.
He added that for 2007-09, Dell will in fact purchase $70 billion of computer-related supplies and equipment from the oriental state.
This latest announcement is indicative of China's growing importance in the computing market.
Already, late last year, internet specialist Cisco Systems said it was going to almost double the number of components it was buying from China.