SAP Labs China in Shanghai will support current development of SAP's enterprise management products and address local customers' development requests. SAP has run a software centre in the country for over seven years, but it worked mainly on China localisation.
The new 120-engineer centre "is designed to be a world-class software development lab, qualitatively on a par with all of our SAP Labs facilities worldwide," said Peter Zencke, the SAP executive board member responsible for SAP Labs worldwide, in a statement.
He said the facility is already developing products for customers in Europe and the United States, and will take on "strategic development projects" assigned by SAP's executive board.
The centre helped develop products for small- and medium-sized businesses in China, including the recently launched SAP Business One, the company said in its statement.
SAP plans to continue its expansion in China, and the president of SAP Labs China, Shang-Ling Jui said the labs could strengthen SAP's competitive edge in the China market.
"The scope of work we have already accomplished underscores that this will be the case for installations of all sizes and in all industries," he said in a statement.
SAP already has a range of Chinese company clients, such as Lenovo, Haier, Sinopec, Cosco, the Minsheng Bank and the FAW Group.
Jui also said that SAP is looking for local partners in Linux, with some talks ongoing, but no details were given, according to a People's Daily report.
Zencke said the company will invest around $11.8m (£6.77) annually in SAP Labs China.
SAP was recently reported to be planning an investment of $120m in its business in India, with the aim of tripling business there within three years.
The new SAP Labs facility in Bangalore is the largest for the company in the Asia-Pacific. The campus, located at Whitefield, Bangalore, will eventually house a staff of 1,100, according to a statement from SAP.
The focus of the centre will be global R&D for products and services introduced to SAP customers in India and other markets worldwide.
CNETAsia staff reported from Singapore.
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