Cisco China Sales Vulnerable as Media Urge Domestic Shift

[Recursion]

http://www.bloomberg.com/news/2013-06-25/cisco-china-sales-vulnerable-as-media-urge-domestic-shift.html

Not sure if the Chinese know something we don't, or this is just a blunt attempt at drumming up domestic sales, but nothing we've seen so far implicates Cisco in anything (Cisco's stuff is 2 or 3 levels below what we've seen talked about).

Cisco Systems Inc. (CSCO) faces a backlash in China, where it generates about $2 billion in annual sales, after state-run media said the company poses a security threat and urged a shift toward domestic suppliers.

While Cisco has said it didn’t participate in U.S. surveillance programs revealed earlier this month by former government contractor Edward Snowden, state-owned Chinese media outlets are calling for the company to face restrictions there.

China should develop its own Internet technology, the Global Times newspaper wrote in an editorial this week, alleging that the U.S. can “attack China almost at will.” U.S. companies, including Cisco, represent a “terrible security threat,” China Daily reported, citing an industry source it didn’t identify. Shenzhen-based Huawei Technologies Co. is poised to benefit from any clients seeking Cisco alternatives.

“Huawei will take this and run with it, to leverage its position with customers in its home turf,” said Ray Mota, founder of ACG Research, a networking-equipment industry consulting firm.

Also, a Slashdot thread on the story.