Cisco is ‘very optimistic' about its expanding business with China EVs

Cisco’s Greater China head, Ming Wong, expressed optimism about the company’s growing business with Chinese electric car companies as they expand overseas. Wong stated that Chinese EV-makers have been increasing their global expansion due to intensified domestic competition. Despite escalating trade tensions and tariffs, Chinese automakers, including BYD, are investing in local factories. Cisco is collaborating with at least 10 electric car customers in building factories, offices, and research and development centers overseas. Wong emphasized that there has been no indication from these customers to slow down investments. While the spending generated from such business expansion remains unclear, it is expected to include manufacturing-related capex as well as office-related capex. Cisco aims to shift its focus and portfolio towards state-owned and non-state-owned businesses, as well as Chinese internet companies like Alibaba that are expanding globally.