World number three PC maker Dell expects revenues in China, its second largest market, to near $5 billion this year, chief executive Michael Dell said after launching a services business in the country.

Speaking to an audience of suppliers, Dell said the company would spend $25 billion this year in deals with Chinese suppliers and partners, from $23 billion in 2008 and $29 billion last year.

The comments come a day after Dell launched several new server and storage products aimed at cost-conscious companies, in an attempt to boost its market share.

Dell, which supplies roughly 60 percent of the servers used by China's Internet companies, is also interested in accessing the healthcare and education sectors, where information technology could greatly improve productivity, said Dell.

Dell's China sales jumped 81 percent in the last quarter, fueled by a number of government incentives aimed at stimulating consumption, especially in smaller cities.

(Reporting by Michael Wei and Simon Rabinovitch; Editing by Chris Buckley)

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