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Cisco Marches Into China With $16B Expansion

Network king partners with Chinese firm on censored Internet

By Jason Farago,  Newser Staff

Posted Nov 1, 2007 11:33 AM CDT

(Newser) – Cisco Systems, the giant of network gear, has announced a long-term, $16 billion expansion into Chinese markets, reports the AP. The multi-part expansion includes doubling Cisco's manufacturing in the country, a venture capital program in collaboration with a government bank, and a partnership with China's largest commerce website to produce business services.

Although China has the world's second-greatest population of Internet users, the web remains heavily censored, and human rights activists have warned Cisco against aiding the government in monitoring Chinese Internet use. Yet Cisco's CEO brushed off those concerns: "One thing tech companies cannot do, in my opinion, is involve themselves in politics in a country."

Cisco Chief Executive John Chambers, right, toasts a champagne with Jack Ma, chairman and CEO of Alibaba Group after witnessing a joint ventures partnership signing agreement at a hotel in Beijing, China, Thursday, Nov. 1, 2007. Network gear maker Cisco Systems Inc. on Thursday announced a multi-year, US$16 billion (euro11....
Cisco Chief Executive John Chambers, right, toasts a champagne with Jack Ma, chairman and CEO of Alibaba Group after witnessing a joint ventures partnership signing agreement at a hotel in Beijing, China,...   (Associated Press)
Cisco Chief Executive John Chambers speaks to the journalists during a news conference at a hotel in Beijing, China, Thursday, Nov. 1, 2007. Network gear maker Cisco Systems Inc. on Thursday announced a multi-year, US$16 billion (euro11.1 billion) series of initiatives to expand in China with investments in manufacturing,...
Cisco Chief Executive John Chambers speaks to the journalists during a news conference at a hotel in Beijing, China, Thursday, Nov. 1, 2007. Network gear maker Cisco Systems Inc. on Thursday announced...   (Associated Press)
Cisco Chief Executive John Chambers speaks to the journalists during a news conference at a hotel in Beijing, China, Thursday, Nov. 1, 2007. Network gear maker Cisco Systems Inc. on Thursday announced a multi-year, US$16 billion (euro 11.1 billion) series of initiatives to expand in China with investments in...
Cisco Chief Executive John Chambers speaks to the journalists during a news conference at a hotel in Beijing, China, Thursday, Nov. 1, 2007. Network gear maker Cisco Systems Inc. on Thursday announced...   (Associated Press)
Cisco has announced a major expansion into Chinese markets.
Cisco has announced a major expansion into Chinese markets.   (Getty Images)
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