… new investments in companies that align with its own interests in areas including cloud computing, enterprise technologies and machine learning.
Just one year ago, Indian e-coupon aggregator LafaLafa.com was barely a blip in the mind of, well, anyone. It’s been quite the year though – testament to the booming tech environment in India, they’re one of the privileged few to be on their way to be accelerated by one of Silicon Valley’s hottest startup incubators.
The partnership comes in the face of mutual suspicion between the US and Chinese government amid claims and counter claims of state sponsored cyber security threats.
In June Cisco was forced to remove several of its senior executives in China, amid reports of falling sales slide and Chinese government fears about the foreign ownership of networking equipment.
Cisco’s China sales fell 20 per cent on the previous year in the quarter ending on April 25 at a time when its global revenue gained 5.1 per cent. As its share of the Chinese router market fell from 21.2 per cent to 9.4 per cent the lost sales went to local rival Huawei Technologies, according to Bernstein Research.
Direct selling became more challenging, The Wall Street Journal has reported, after US National Security Agency whistleblower Edward Snowden said the NSA put surveillance tools in US technology products sold overseas.
US-Chinese technology company partnerships are growing in number and Microsoft announced on Thursday an alliance with Baidu and the Chinese state-owned private investment firm Tsinghua Unigroup on cloud technology. Last week Dell unveiled plans to invest $ 125 billion over five years in China. Earlier this year, IBM pledged to help develop China’s advanced chip industry with a ‘Made with China’ strategy, while chipmakers Intel and Qualcomm are developing chips with smaller Chinese companies.
Chinese President Xi Jinping’s arrived in Seattle this morning on a state visit to the US.
Chinese officials have said the partnerships will follow the pattern of car manufacturing agreements in the past, with foreign technology firms granted market access in return for shared technology and co-operation with Chinese industry.
Cisco corporate Cisco Systems is to form a joint venture with Chinese server maker Inspur, selling networking and cloud computing products in China.