Tech

Trade War: Cisco against worldwide fragmentation of the technology industry


The Chinese and US governments should have the digital infrastructure "do not balkanize"said Cisco chief Chuck Robbins in conversation with the British Financial Times, "I really think both governments understand the economic value and I think they also understand the future economic value of not balkanizing the digital infrastructure."said Robbins.

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The Silicon Valley company, which outsourced all of its manufacturing, was still in June 2015 announcedto spend $ 10 billion over the next few years in China on investment and partnerships. "Cisco feels very committed to its Chinese partners"Robbins said in a statement at the time. Shortly afterwards, Cisco established a partnership with the state-owned Chinese Inspur Group.

Through the trade war Cisco is currently reporting in China a decline in sales of 25 percent.

The US and China want to hold new negotiations to settle their trade conflict. The Ministry of Commerce in Beijing said there should be direct talks in Washington in early October, which would be prepared at work level from mid-September.

Last month, President Donald Trump stepped up his rhetoric and tweeted: "Our great American companies are being urged to seek an alternative to China immediately, including bringing their companies home and manufacturing their products in the United States."

Later, members of the government made it clear that there was no order from the president to sever supply chains. Technology managers told the Financial Times that they had intensified their planning for this, if that really happened.