China retaliates after unfavorable report of Huawei, ZTE

The U.S. government said some not-so-nice things about Chinese telecom equipment makers Huawei and ZTE and warned against their business expansion in the name of national security.

China retaliates by terminating Cisco’s role in managing one of its core backbones, giving the job to China Unicom instead. In the name of national security, of course.

Frankly, Cisco execs must’ve anticipated something like this happening. It’s probably not a surprise. The company’s routers still form most of China’s network infrastructure, so this is likely just a warning shot from Beijing to save face.

Some folks may argue that Cisco is getting what it deserves and claim that the American company is no different than Huawei or ZTE.

But let’s be realistic here… We know a lot more about Cisco than we do Huawei or ZTE. We know how Cisco got started, how it became a public company, who its executives are throughout the company history, their background, the company’s financial data laid out on paper, complete with audit trails. Can you say that about the Chinese companies?


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