Increasing Number of U.S. Tech Firms Focusing on Partnerships with Chinese Firms to Penetrate Market

Published By : 23 Sep 2015 | Published By : QYRESEARCH

China is a very attractive market and several international companies around the world are eyeing this market due to the myriad opportunities it provides. Especially, the tech sector is attractive to many global companies. For many years, many multi-national firms have been trying to gain a foothold in the Chinese tech sector.

The China market for technology in sectors such as smartphones, apps, personal computers, and computer-related products is particularly lucrative due to the growing preference for these technologies. The presence of millions of consumers and willingness of consumers to spend on such items adds to the attractiveness of the China tech market. For many years, major companies from the U.S. have tried to penetrate this technology sector; however, it has been difficult for companies to achieve this due to the strong presence of domestic firms in this market.

Nevertheless, it has been reported that Cisco Systems is preparing to declare a partnership with the domestic server-making company in China called Inspur Group. This move from Cisco is projected to help the company gain a stronger foothold in a highly desirable market rife with accelerating competition and a national government looking to drive the nation’s homegrown tech vendors.

Similar to Cisco, a rising number of vendors from U.S. are trying to use a combination of financial investments along with partnerships to make more inroads in the difficult-to-enter China market. Take the example of Hewlett Packard (key rival of Cisco), that in May declared that it was going to create a joint venture with the Chinese firm China’s Tsinghua Unigroup to create a brand new H3C. This new H3C will be the exclusive provider in China of HP’s server, networking, and storage products, and related hardware support services.

Many other major firms in the global tech industry are increasingly announcing joint investments with local Chinese firms. Some of these firms are Intel, Broadcom, and Qualcomm

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