BEIJING US technology giant Cisco Systems Inc. has helped build the Internet in China, working closely with the Chinese government that a spiritual group, once accused him of helping the country warning of its own nationals, a charge denied by Cisco.
Now Cisco, in a development that underlines the difficulties foreign technology companies in China, is preparing to support its business in trouble us joining forces with a Chinese upstart computer company.
The giant network of Silicon Valley-team is expected to announce a partnership with the server manufacturer Inspur Group Co. during the visit of Chinese President Xi Jinping, in Seattle on Wednesday, according to people familiar with the talks. The effort to Cisco to open more doors for its technology in China shows how Western technology companies are struggling to adapt to an increasingly difficult market.
"There are some geopolitical dynamics that we need to explore," said Chuck Robbins, who became chief executive of Cisco, in July, in an interview last week that Inspur not discussed. "It 'been a few difficult years."
On Wednesday, Mr. Xi is scheduled to meet with the leading figures in the technology industry, including Apple Inc. 's Tim Cook and Microsoft Corp.' s Satya Nadella. The presence of many leading technology underlines the importance of the Chinese market is US companies.
Now Cisco, in a development that underlines the difficulties foreign technology companies in China, is preparing to support its business in trouble us joining forces with a Chinese upstart computer company.
The giant network of Silicon Valley-team is expected to announce a partnership with the server manufacturer Inspur Group Co. during the visit of Chinese President Xi Jinping, in Seattle on Wednesday, according to people familiar with the talks. The effort to Cisco to open more doors for its technology in China shows how Western technology companies are struggling to adapt to an increasingly difficult market.
"There are some geopolitical dynamics that we need to explore," said Chuck Robbins, who became chief executive of Cisco, in July, in an interview last week that Inspur not discussed. "It 'been a few difficult years."
On Wednesday, Mr. Xi is scheduled to meet with the leading figures in the technology industry, including Apple Inc. 's Tim Cook and Microsoft Corp.' s Satya Nadella. The presence of many leading technology underlines the importance of the Chinese market is US companies.
Companies such as International Business Machines Corp., Microsoft and Symantec Corp., once a leader in the Chinese market, are running against their local rivals, with a government committed to helping Beijing.
Over the past two years, the business cold deepened after allegations of former NSA contractor Edward Snowden US American products of high-tech enterprises "have been used by the US government to spy on China. China's leaders have said government departments and enterprises State to buy more team, while developing higher standards for equipment manufacturers foreign and accelerate investment in domestic technology.
Technology companies are responding to Western alliances with headwind China rivals.The China were particularly strong for Cisco, a company founded in 1984 that popularized routing devices that direct traffic on the Internet. The company, routers No. 1 selling around the world, systems and other key network switching tubes, served as a key supplier when China built its first Internet backbone.
But Cisco has suffered from security problems and local competitors after Snowden, such as the market share of Huawei Technologies Co. Cisco routers sold in China amounted to only 10.8% in the second quarter of 2015, while Huawei It It accounted for 67% market research firm IHS estimates. Cisco accounted for more than half of the sales of the router is about ten years ago, estimates of Bernstein Research.
Cisco does not provide sales data for specific countries. Dell'Oro Group, a market research firm, estimates that revenues for Cisco in China reached a peak of $ 2040000000 in fiscal 2012, and has fallen nearly 30% since then.
Things got a bit 'better lately, said CEO of Cisco, Mr. Robbins. Equipment orders in China, compared with 20% in the third fiscal quarter of Cisco, has been reduced to only 3% during the latest quarter ending in July, the best performance in eight quarters.
Over the past two years, the business cold deepened after allegations of former NSA contractor Edward Snowden US American products of high-tech enterprises "have been used by the US government to spy on China. China's leaders have said government departments and enterprises State to buy more team, while developing higher standards for equipment manufacturers foreign and accelerate investment in domestic technology.
Technology companies are responding to Western alliances with headwind China rivals.The China were particularly strong for Cisco, a company founded in 1984 that popularized routing devices that direct traffic on the Internet. The company, routers No. 1 selling around the world, systems and other key network switching tubes, served as a key supplier when China built its first Internet backbone.
But Cisco has suffered from security problems and local competitors after Snowden, such as the market share of Huawei Technologies Co. Cisco routers sold in China amounted to only 10.8% in the second quarter of 2015, while Huawei It It accounted for 67% market research firm IHS estimates. Cisco accounted for more than half of the sales of the router is about ten years ago, estimates of Bernstein Research.
Cisco does not provide sales data for specific countries. Dell'Oro Group, a market research firm, estimates that revenues for Cisco in China reached a peak of $ 2040000000 in fiscal 2012, and has fallen nearly 30% since then.
Things got a bit 'better lately, said CEO of Cisco, Mr. Robbins. Equipment orders in China, compared with 20% in the third fiscal quarter of Cisco, has been reduced to only 3% during the latest quarter ending in July, the best performance in eight quarters.
