Cisco said to plan China partnership to boost market access

Cisco is reportedly planning a partnership with local server maker Inspur Group

Following in the footsteps of some other U.S. companies like Hewlett-Packard and Intel, Cisco Systems is planning to tie up with a Chinese partner for joint development and better access to the local market, according to a newspaper report.

The networking equipment company is planning to announce a partnership with server maker Inspur Group during Chinese President Xi Jinping's visit to Seattle on Wednesday, The Wall Street Journal reported.

Cisco said it declined to comment on rumouirs related to any specific announcements or companies. Company spokesman Nigel Glennie said the company is optimistic about the opportunities for its China team, and is open to local partnerships playing a role in its future strategy. The company has done business in China for over 20 years and learned the importance of having the right relationships, he added.

US technology companies are struggling in the Chinese market against local rivals backed by the government as well as Chinese suspicions that they have been used by the U.S. to spy against the country, following revelations in this connection by former National Security Agency contractor Edward Snowden. One report disclosed that the agency was intercepting and bugging networking and other equipment before it was sent to customers targeted for surveillance.

Referring to the reports, including a photograph of what appeared to be a Cisco package being tampered with, Cisco's executive chairman and former CEO John Chambers wrote in a letter last year to U.S. President Barack Obama that if the allegations are true, the actions will weaken confidence in the ability of technology companies to deliver products worldwide.

The Chinese government has, meanwhile, instructed its departments and state-run companies to buy more locally made equipment, while tightening rules for foreign makers, in part to boost the business for domestic players.

Cisco has faced geopolitical challenges in China during the last few years, Glennie said. "However we have always taken a long term view and continue to see great opportunity for our China team." China currently accounts for about 3 percent of Cisco's global business, Glennie added.

At the same time, China has invited US technology companies to invest in research and development in the country and a deal between Cisco and Inspur will likely include both reselling of gear and joint development of products and technologies for the local market.

Other U.S. tech companies have also made overtures to China recently. Dell said this month that it plans to spend US$125 billion over the next five years in the company's second largest market outside the U.S., including to invest in tech startups, expand its own research and development team, and collaborate with the state-controlled Chinese Academy of Sciences to set up an “Artificial Intelligence and Advanced Computing Joint-Lab.”

Intel said last year it was investing in local chip companies for design of mobile phone chips, while Hewlett-Packard said in May it would sell a majority stake in its server, technology services and storage business in China to a Tsinghua Holdings subsidiary to boost sales of HP's enterprise products in the country.

Cisco had earlier tried to have a joint venture with the state-owned China Electronics Technology Group, but that deal fell through, according to WSJ.

During his visit to the U.S., Xi is expected to meet a number of tech leaders including Apple CEO Tim Cook and Microsoft CEO Satya Nadella.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags HPinspur groupXi JinpingNetworkingsecurityciscoChinaintel

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?