Yeah, but don't they already have a company over there that is producing Cisco stuff? Or did I mis-read a lawsuit?
Cisco don't have a choice, they are starting to see the competition from Chinese companies already - they need to reduce the cost of manufacturing so that they can stay competitive and not have to reduce their margins, of which Cisco regularly state that they will maintain at all costs in a number of financial statements/briefings. So either they maintain their business by moving people to China or they pull the plug on product lines they can't maintain margins on. In either case people will be laid off, its not a great situation but it's the push that "we" all make to have things cheaper with more features in them. There are a number of companies building networking equipment in China: www.huawei.com www.zte.com.cn www.harbournetworks.com They make everything from mobile phones to Long Haul Optical Systems. A large number of big well known vendors have been making things in China for years. I've recently see one of Huawei's "1760 alternative boxes" and the build quality is fantastic. Regards, Neil.