Michael Dell Sees Faster Economic Recovery in China

The CEO of Dell called business conditions in China among the best in the world amid slowing global growth at a talk in Beijing on Thursday.

China has unrolled massive stimulus spending and launched a discount initiative for rural consumers buying PCs and other electronics to spur growth.

"China seems to have come out of the crisis stronger than other countries, faster, and the government's pretty rapid action seems to have caused a positive demand condition," said Michael Dell

Fifteen Dell products, including some models modified for Chinese consumers, are eligible for the country's subsidy program. The company is investing in rural areas to support the program and boost sales, Dell said.

Dell dodged a question about reports that layoffs at his company could extend to some of its 6,000 employees in China. China, Dell's second largest market, accounts for about five percent of its global business.

Dell is one of many firms that has targeted remote Chinese cities to boost growth. Those efforts have paid off for many firms, but the economic downturn has hit the Chinese countryside as well, said Bryan Ma, an analyst at IDC.

How much the rural subsidy program will help remains unclear.

"There are, of course, going to be a good number of units sold through the program, but we don't believe it's going to create any major inflection points in the market," Ma said.