Whistle-blower Edward Snowden's exposure of sweeping government surveillance programs could have a major impact on Cisco Systems' business in China.
Over the years, Cisco has played a role in nearly all of China's large-scale telecommunications projects related to the financial market, government administration, rail transportation, civil aviation and law enforcement.
Although the company has issued statements saying that it is not involved in monitoring citizens or government communications in China or anywhere else, recent events mean that it may be quite a long time before we can trust Cisco again.
Amid escalating trade friction between China and the US, both countries are circling the wagons around their local industries with protectionist policies. Owning to security concerns, we can probably expect Chinese authorities to tighten their supervision over Cisco's operations in the domestic market. It also wouldn't be surprising to see Cisco soon eclipsed by local competitors Huawei Technologies Co and ZTE Corp.
Based on special reports published on qq.com.