Huawei, Intel deepen ties

6 Mar

Huawei Technologies and Intel Corp are beefing up an existing alliance to provide cloud computing to global telecoms carriers as U.S and other Western technology firms struggle to cope with a China that is growing suspicious of foreign technology.

Beijing has been advocating for the use of more domestic and less foreign-made technology, to bolster its own tech sector and in response to former U.S. National Security Agency contractor Edward Snowden’s leaks about US cyber surveillance, analysts say.

Intel and Huawei have worked together in the past, including a server and cloud product tie-up in 2012 and an agreement to cooperate on data storage last April.

Allying with Chinese firms, including technology transfers and adopting Chinese partners’ branding, can make Western companies’ products more appealing to local buyers and acceptable to Chinese authorities, experts say.

“How do you stay in this market and do the least damage to your core business – that’s the puzzle everybody is focusing on now,” James McGregor, chairman for advisory firm APCO China, told Reuters.

Other US technology tech firms choosing to work with local Chinese partners include IBM Corp, Dell IncCisco Systems Inc, Hewlett-Packard Co and Juniper Networks Inc.

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