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For a conference ostensibly on the theme of sustainability, trade was the big topic at this year’s World Economic Forum’s annual meeting in Davos, Switzerland. In fact, it was the first thing that came up when Barron’s sat down with
Cisco Systems
CEO Chuck Robbins.
Robbins commented that the feeling in Davos was more relaxed this year, in large part because some trade tensions have eased, with the signing of the U.S.-Mexico-Canada trade agreement, the phase-one deal between the U.S. and China, a new deal with Japan, and United Kingdom/European Union talks in the works.
San Jose, Calif.–based
Cisco
develops networking hardware, software, and telecommunications equipment. A global powerhouse, the company has been in China for 30 years without a problem, Robbins says. The phase-one deal has been widely criticized for not addressing technology issues, but Robbins says he’s optimistic that it lays the groundwork for “a rational negotiation” for phase two.
“The Chinese have been good with us on counterfeit issues. And it’s not as if intellectual property issues are unique to China,” he says. “The last two big issues we had were in the U.S.”
Robbins says “a level playing field on a global basis” is the most important goal for a phase-two agreement. The key areas are intellectual-property protection, addressing the forced technology-transfer issue—where U.S. companies seeking market access in China must partner with a Chinese firm and share their intellectual property—and general market access. “Though that’s more difficult discussion to have,” Robbins adds, “given that Huawei is not allowed to play in the U.S.”
Trade disputes have exacerbated the feeling of rampant nationalism and the reluctance of countries to work together for the global good, according to Robbins. “I’m hopeful that we can still come together to form a global view on the big issues—cross-border data flows, privacy, the environment,” he says. These solutions, he adds, need to be a coordinated effort between governments and the private sector.
This article is part of our ongoing coverage of the World Economic Forum in Davos, Switzerland.
Write to Beverly Goodman at [email protected]
