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To: foundation who wrote (12500)	6/17/2000 12:34:00 PM
From: Eric L	Respond to of 13582

Re: Cisco & China Unicom >> *Cisco Chief Sees Strong China Sales Growth* totaltele.com By Bill Savadove Reuters 16 June 2000 Cisco Systems chief John Chambers said on Friday sales in China should grow 50-100 percent a year as the country builds its Internet infrastructure. "The level of sales in China is approaching a half billion dollars annually, growing at about 90 percent per year, give or take five or 10 percent," he told reporters. "I would be disappointed if our growth rate were not in the 50 to 100 percent range." The U.S. network equipment maker's 15 Chinese manufacturing partners would also provide $650 million in components and sub-systems to Cisco this year, said Chambers, the company's president and chief executive officer. Sales in China were divided between telecommunications service providers, enterprises and small businesses, Cisco officials said. The former China Telecom was Cisco's largest customer in China, accounting for about 50 percent, they said. China restructured China Telecom in April, dividing the state giant into China Telecommunications (Group) Co for fixed line services and China Mobile Telecommunications (Group) Co. Chambers said the Chinese government realized the importance of investing in both telecommunications infrastructure and education for encouraging electronic commerce. "The Chinese government and business leaders really get it, and as they get it they will build out the infrastructure, which is going on very actively now," he said. "If you build up your infrastructure and your education system is very good, then the market could be huge." Cisco would channel future investment in China into sales and support, manufacturing and purchasing of products, research and development and education, Chambers said. "I'm investing here very, very strongly. The way we will invest will be in all categories," he said, but declined to give a figure for current investment. Cisco had yet to acquire a Chinese company but was considering possibilities in Asia, Chambers said. "Both our acquisition strategy and our investment strategy is evolving to be a truly global basis," he said. Cisco signed a memorandum of understanding with China Unicom, China's number two telecommunications firm, this month to provide technology products and consulting on new services. Unicom is preparing to list in New York on June 21 and Hong Kong on June 22. << - Eric -