2012-10-10

Protectionism: it's on like Donkey Kong

This looks to be the beginning of serious protectionism efforts by U.S. industry and the U.S. government.
Cisco Bashes Huawei, Cuts Ties With ZTE
Speaking to CRN recently, Cisco CEO John Chambers took aim at Huawei in particular, telling the trade journal, "they've got some people really questioning, do they play by the rules, of which I'm clearly one of them who says, no they don't."

Earlier in the week, it was reported by Reuters that Cisco cut ties with ZTE after an internal probe determined that Cisco products were being sold to Iran by the Chinese telecommunications equipment maker in contravention of the U.S. sanction regime against that country.

China's ZTE says Cisco has ended cooperation
In a statement late Tuesday, ZTE confirmed media reports that Cisco earlier this year scrapped a 2005 strategic cooperation agreement which included purchases of equipment from the US Company.

"In July 2012, Cisco informed the company (ZTE) that it terminated the strategic cooperation agreement entered with the company in 2005, mainly in relation to the company's purchase of routers and other products," ZTE said.
Cisco is clearly using the opportunity to attack its rivals. The Huawei situation is more natural, since there's bad blood between the firms, but the move against ZTE smacks more of opportunism.

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