The Straits Times
Published on Oct 10, 2012

China's ZTE says Cisco has ended cooperation


SHANGHAI (AFP) - Chinese telecom firm ZTE, accused by American lawmakers of doing business with Iran and posing a security threat, says US network giant Cisco Systems has ended a cooperation deal with it.

In a statement late on Tuesday, ZTE confirmed media reports that Cisco earlier this year scrapped a 2005 strategic cooperation agreement which included purchases of equipment from the US company.

"In July 2012, Cisco informed the company (ZTE) that it terminated the strategic cooperation agreement entered with the company in 2005, mainly in relation to the company's purchase of routers and other products," ZTE said.

ZTE in its latest statement said it would not be hurt by Cisco's move since it had alternatives to the US firm's equipment. ZTE, soon after the agreement was signed, had described the cooperation in far broader terms, saying it included jointly expanding in telecommunications markets in China and the rest of Asia.