Outgoing CEO blames geopolitical tensions for sluggish Asia-Pacific performance.
Cisco‘s future performance in China rests on the summit between US and Chinese Presidents Barack Obama and Xi Jinping in September 2015, according to outgoing Cisco CEO John Chambers.
In a Q and A session, Chambers praised China for its innovation and strategy, but claimed that the geopolitical tensions were the main obstacle to Cisco‘s business there.
"The Chinese reinvent themselves remarkably effectively; they’re on their twelfth five year plan, it’s very well thought out. It’s a company that understands business and a company in transformation and if the meeting between our two presidents goes well here in the fall, I think you will see our joint cooperation and business pick right back up. If it doesn’t go well it won’t."
The claim comes following quarterly results in April that showed a continuing sluggish performance in the Asia-Pacific region, which Chambers blamed on geopolitical tensions.
Mutual suspicion between China and the US has seen the tech sectors of both countries being denied access. At Davos, Huawei’s reclusive founder Ren Zhengfei went on the record to claim that Huawei has neither the intention of the capacity to spy on the US.
Local giants such as ZTE have also put a squeeze on Cisco’s business there.
Read more in the full interview with John Chambers, published on cbronline.com Wednesday at 12.00 PM BST.