Cisco remains optimistic about its relationship with Chinese electric vehicle manufacturers despite rising trade tensions. The company is currently collaborating with at least 10 electric car customers as they expand internationally. Despite tariffs on Chinese EV imports by the US and potentially the EU, companies like BYD are continuing to invest in local factories. Cisco’s vice president and CEO in Greater China, Ming Wong, expressed confidence in the continued growth of the electric vehicle sector in the region.
Wong believes that Cisco’s business in China can return to growth this year, with both state-owned and non-state-owned companies looking to Cisco for global expansion. Despite a recent drop in total revenue, Wong expects the Asia-Pacific region to grow faster in the next one to two years. The company’s optimism comes despite a decrease in shares following its fiscal third quarter results.
China has invested heavily in its electric vehicle industry, with over $230 billion invested in the past decade leading to rapid growth in new industries. Despite trade tensions and potential tariffs on Chinese products by the US and EU, Chinese electric vehicle manufacturers are continuing to expand globally. Prime Minister Li Qiang defended China’s electric vehicle and lithium-ion battery industries against accusations of overcapacity and unfair subsidies from the West.
Cisco’s shares were trading slightly lower in pre-market trading following the company’s financial results. The company’s optimism about its relationship with Chinese electric vehicle manufacturers remains strong, despite challenges in the global trade environment. Cisco sees potential for growth in the electric vehicle sector in the Asia-Pacific region in the coming years.
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https://www.benzinga.com/markets/asia/24/06/39478967/cisco-very-optimistic-about-growth-in-chinese-ev-market-despite-trade-tensions