Apple has established its first research and development (R&D) center in China in Zhongguancun Science Park, Beijing.

Apple's new R&D center has a registered capital of 100 million yuan ($16 million), while the total investment would likely reach 300 million yuan ($50 million), according to a statement released by the Zhongguancun Park Management Committee on its official WeChat account.

Like Us on Facebook

It will be located in Chaoyang Park, a subpark of Zhongguancun that was built by the government to cater technology enterprises, Caixin reported. The hub is home to research centers of international tech firms such as AMD, Google, Intel, Sony, and Microsoft.         

The center is poised to hire at least 500 employees and will focus on developing computer hardware and software products; communications, audio and video equipment; and consumer electronics technology and information technology, Economic Times reported citing People's Daily.

Other than research, the Digitimes also noted that the R&D center will also be used to integrate Apple's engineering and business teams to boost sales and services. The center is expected to complete this year.

Meanwhile, the move comes shortly after Apple CEO Tim Cook revealed in August that an R&D center will be set up by the end of 2016 in China.

The announcement follows as the company saw global sales decline in the last two quarters on its flagship iPhone, Caixin noted. In fact, Apple slid down to the fifth spot in terms of Chinese smartphone shipments last May, lagging behind domestic brands including Huawei, Vivo, Oppo, and Xiaomi. Apple's R&D center aims to set a foothold on the world's second largest economy.

Apple has also put up other R&D Centers in Japan, Israel, and the UK. It plans to expand more in Canada, India, Indonesia, and Vietnam to localize resources.

Tagsapple, china, china market, R&D Center, Silicon Valley, Zhongguancun, Tim Cook