Cisco Systems Inc said Thursday it would form a joint venture with Chinese server maker Inspur to sell networking and cloud computing products in the Chinese mainland, where the Silicon Valley firm faces political pressure and declining sales. [Special coverage]
Cisco and Inspur said they would invest $100 million in the project, although they offered few other details.
The partnership is one of a growing number of tie-ups between Chinese and U.S. technology firms announced during or ahead of President Xi Jinping's visit to the US this week.
Earlier this year, IBM pledged to help develop China's advanced chip industry with a "Made with China" strategy, while chip makers Intel Corp and Qualcomm Inc are developing chips with smaller Chinese companies.
Similar to its dealings with the foreign auto industry in decades past, Chinese officials have made clear to foreign tech firms that market access depends on their sharing technology and cooperating with Chinese industry.
Like many of its peers, Cisco's market share has retreated in recent quarters in China. U.S. business lobbies have said the Chinese allegations amount to protectionism, while China has pointed to the experience of Cisco's Shenzhen-based rival, telecommunication giant Huawei Technologies Co, which faced similar accusations from Capitol Hill when it sought to enter the U.S.
