Cisco does deal with Chinese

Cisco and Inspur will jointly invest $100 million in the project. The joint venture was one of several deals announced by US companies this week during the visit of Chinese President Xi Jingping’s to the United States that highlight how attractive the China market is to businesses on this side of the Pacific Ocean.

Cisco appears to be doubling down on its China bet as other USA tech firms grow increasingly circumspect in response to the government’s market access demands in areas like Internet security and intellectual property.

On Thursday, Cisco Systems Inc said that it is going to form a joint-venture with Chinese server maker Inspur for the sale of networking and cloud computing products in China, where the Silicon Valley firm has been facing political pressure and declining sales. A Cisco spokesman declined to comment on the report.

Robbins said the deal with Inspur includes a joint venture in China to develop and sell networking and other IT technologies along with new services in areas like IT infrastructure, cloud, datacenters, smart cities and big data.

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 previous year to President Obama that if the allegations are true, the actions will weaken confidence in the ability of technology companies to deliver products worldwide.

“China represents approximately 3 percent of our business, and being the world’s second largest economy, we see the potential to increase this considerably over time”, Robbins asserted.

Cisco announced a $10 billion investment in China in June. Past year it unveiled an initiative to take business in China away from IBM.

On Wednesday, Xi is scheduled to meet with major technology-industry figures, including Apple Inc.’s AAPL, -1.57% Tim Cook and Microsoft Corp.’s MSFT, -0.48% Satya Nadella. Intel is associated with Spreadtrum & Rockchip, the Chinese mobile company and Qualcomm are already far ahead of all these companies as they have manufacturing units for chips with smaller Chinese companies.