Even as the search for Snowden continues, the impact of his data bomb is rippling across continents. Bloomberg reports US company Cisco may face a backlash in China as the media urges industry to shift away from US made routers and switches in favor of locally produced ones.
China should develop its own Internet technology, the Global Times newspaper wrote in an editorial this week, alleging that the U.S. can “attack China almost at will.” U.S. companies, including Cisco, represent a “terrible security threat,” China Daily reported, citing an industry source it didn’t identify. Shenzhen-based Huawei Technologies Co. is poised to benefit from any clients seeking Cisco alternatives.
And the US government has banned federal agencies from buying Huawei an ZTE equipment. Rather than a Cold War with a world divided by a wall or a political border, it’s a world with considerable cross border trade and travel. Yet the closer you get to the power blocs, the more dense the web of business and political allegiances. I imagine that circularity of the trade and trade allegiances between businesses and states will grow. And then you’ll have some countries that use both Cisco and Huawei equipment side by side.