Cisco CEO Calls for Trump-China Cooperation, Downplays China Market Impact
Davos, Switzerland - Improved relations between the United States and China would significantly benefit global businesses, said Cisco CEO Chuck Robbins at the World Economic Forum.
Robbins emphasized the importance of finding a way for the two countries to coexist peacefully. "I believe that the world and the global economy are better off when the US and China can work together," he stated.
Despite ongoing trade disputes, Robbins expressed optimism about the Trump administration's efforts to engage in dialogue. As chair of the influential Business Roundtable, Robbins is committed to building consensus among CEOs on trade policy and advocating for the Trump administration.
Cisco has a significant presence in China, with operations in 16 cities and 4,000 employees. However, Robbins downplayed the impact of China's recent market downturn on Cisco's overall performance, describing it as "virtually immaterial."
Robbins is more concerned about extending Trump's expiring tax cuts for businesses and households, which he believes would significantly benefit the US economy. "We've got to do taxes this year," he said. "There are trillions of dollars in potential tax increases if we don't."
Despite the trade war concerns, Cisco's stock has outperformed the S&P 500 in recent months. The company's recent earnings beat and optimism about the integration of its Splunk acquisition have contributed to this positive momentum.
Analysts anticipate further gains for Cisco stock due to the increasing demand for enterprise networking and its potential role in developing the world's AI infrastructure.