Cisco Changes Chinese Branch Management

Photo: A. Makhonin / Vedomosti

Cisco decided to change the management of its Chinese branch. The reason is a drop in sales of Cisco products in China, Vedomosti reports . As it became known today, both the president of the Chinese branch of the company, Han Thu, and the vice-president, Fredi Cheung, will resign. The company's results for the first quarter of this year in China are not very successful - Cisco in this region showed a 20% drop in revenues compared with last year. At the same time, the company's global revenues increased by 5.1%.

One of the reasons might be Edward Snowden, a former NSA employee. In 2013, he said that the agency uses the equipment of American companies, including Cisco, for the introduction of “bookmarks”. These "bookmarks" in the software provide access to US intelligence services to data that is stored or processed using such equipment.

Confessions of Snowden have undermined the credibility of Cisco products from Chinese customers. Now, government customers from China, who previously acquired American hardware and software, are switching to products from domestic manufacturers.
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In Russia, the company's revenue is also declining, but here the main reason is sanctions, which significantly complicate the importation into Russia of goods by an American company.