Baidu.com Inc<BIDU>, the world's largest Chinese Internet search service provider, announced that it had reached an advanced strategic cooperation agreement with Cisco Systems Inc, the Shanghai Securities News reported.

Under the terms of the agreement, the two companies will cooperate on the research and development of the "next generation" Internet and search engine with the resources from both sides, including  establishment of co-laboratory, setting up program R&D team, as well as technology interaction, according to sources.

Baidu has started setting up a co-lab with Cisco since late 2007, and has made significant progress in the fields of IPv6 and 100G internet bearing capacity research. The Chinese company expects the “next
generation” internet technology standardization it is working on with Cisco will consolidate its leading position in the new internet era, which requires a more reliable internet system with higher bearing capacity, broadband width and speed.

Baidu is also reportedly working with Huawei Technologies and H3C in Ethemet and mobile internet technologies.

Source:China Knowledge