Cisco Reportedly to Partner With Chinese Server Maker Inspur

By Jeffrey Burt  |  Posted 2015-09-22 Print this article Print
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Cisco has made similar recent efforts. During a visit to China in June by Robbins and then-CEO John Chambers, the company announced it would invest $10 billion in projects in the country over the next several years.

According to The Wall Street Journal, Cisco—the world's largest seller of networking gear—has seen its market share and sales in the country fall over the past several years. The company has been hurt by growing competition from the likes of China-based Huawei Technologies, as well as tensions between U.S. and Chinese lawmakers over cyber-security suspicions. U.S. officials in 2012 said Huawei and ZTE—another Chinese vendor—posted security risks because of their close relationship with the Chinese government, going so far as to recommend to U.S. businesses that they not buy products from the two companies over fears of back doors in the hardware that could give Chinese hackers access to corporate or government data.

China pushed back at the suspicions and made similar accusations about U.S. companies such as Cisco, Intel and IBM. China was given some ammunition when Snowden, the NSA contractor, in 2013 began leaking secrets of the agency's surveillance programs, which included allegations that the NSA used U.S. tech vendors in its spying efforts, allegations that the vendors denied.

Despite all that, Cisco has seen some improvement in China. During a conference call in August to talk about the company's latest financial numbers, Robbins said that in the most recent quarter, revenue in China was down 3 percent over the same period in 2014: "the best performance we've had in the past eight quarters."



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