Cisco remains optimistic about its relationship with Chinese electric vehicle (EV) manufacturers despite escalating trade tensions. The company sees the electric vehicle sector as a key market in the region, generating significant revenue from manufacturing companies. Ming Wong, Vice President and CEO of Cisco Greater China, stated that the company is collaborating with at least 10 electric car customers as they expand globally, indicating that they are not slowing down despite trade tensions.
Despite the US and potentially the EU imposing tariffs on Chinese electric vehicle imports, companies like BYD are actively investing in local factories and expanding globally. Wong mentioned that customers have not shown any signs of slowing down their investments due to trade tensions. Cisco hopes to see growth in its business in China this year as both state-owned and non-state-owned companies look to Cisco for global expansion.
Despite a 13% drop in total revenue in the latest quarterly reporting period, Wong expects the Asia-Pacific region to grow faster in the next one to two years. Cisco’s positive outlook comes even after a decline in its shares following its fiscal third-quarter results. China has invested over $230 billion in its electric vehicle industry over the past decade, leading to rapid growth in new industries in the country.
Chinese Prime Minister Li Qiang defended China’s electric vehicle and lithium-ion battery industries against accusations of overcapacity and unfair subsidies from the West at the World Economic Forum. Despite potential tariffs on Chinese-made EVs by the US and EU, Chinese EV manufacturers are continuing to grow, and Cisco remains optimistic about its trade ties with them.
Cisco’s stock was trading slightly lower in pre-market trading, but the company’s outlook remains positive. Elon Musk’s recent statement about Tesla potentially preventing a DWI charge if Justin Timberlake had been driving one of their vehicles rather than a BMW was also highlighted in the article, showcasing ongoing developments in the electric vehicle industry.
In conclusion, Cisco’s positive outlook on its relationship with Chinese EV makers reflects the resilience of the industry despite trade tensions and tariffs. The company’s continued collaboration with electric car customers and its focus on global expansion indicate a strong commitment to growth in the region.
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