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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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Moore’s Law defines the history of technology. It held that the number of circuits etched on a given piece of silicon could double every 18 months as far as its author, Intel co-founder Gordon Moore, could see. Moore’s Law has spawned constant revolutions since then, not just in computing but in communications, in science, in a host of areas. Moore’s Law applies to radios, and to optical fiber, but there are some areas where it doesn’t apply. In this blog we’ll take a daily look at new implications of Moore’s Law in real time, as it rolls forward to create our future.
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July 27, 2005

Cheap Shot in a Good Cause

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Posted by Dana Blankenhorn

rebecca mckimmon.jpgRebecca McKimmon (left, from her blog) took a shot at Cisco's China policy recently, confirming through a spokesman that the company does indeed cooperate with the government.

This is not news. So does nearly every other U.S. tech company.

The U.S. policy is, and has been, full engagement with China. This has already hurt Cisco. Back in the 1990s one of the prices for getting into the market was to share technology. Cisco did so, and a few years later Huawei, a Chinese company, had routers and bridges very similar to Cisco's old stuff, along with most of the Asian market (thanks to lower prices).

McKimmon's point now is that China Cisco is cooperating with the worst excesses of the China government, which is seeking to have both the world's best Internet technology and full control over what people do with it.

That is a good point, but I don't think you don't go after Cisco to make it.

You ask the U.S. government, is your policy to enable full cooperation with the Chinese tyranny? And if you don't like the answer you work to change it.

Public companies should not be expected to make or enforce American foreign policy, or trade policy. The buck stops with the government, and in a democracy it stops with us.

There is precedent for all this. IBM cooperated with Hitler, selling the punch card equipment that enabled the Holocaust. At some point it was up to the U.S. government to halt that cooperation, but the government never did. Is this IBM's fault entirely? No, I'm afraid it's not.

There is a myth perpetrated by free trade advocates that trade should be values-free, that anything which gets in the way of trade is wrong, that corporations should leave their consciences at the door. That's the problem, the principle behind the policy. When those who practice absolute free trade go against countries that practice strategic free trade they get their heads handed to them.

If we're to treat China as an adversary rather than a trading partner, fine. But that's not Cisco's job.

It's ours.

Comments (2) + TrackBacks (0) | Category: Business Strategy | Internet | Investment | Journalism | Politics | Semiconductors | Telecommunications


COMMENTS

1. Sérgio Carvalho on July 27, 2005 11:00 AM writes...

Typo:
"China is cooperating with the worst excesses of the China" probably should be "Cisco is cooperating with the worst excesses of the China".

Feel free to delete this comment.

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2. Jesse Kopelman on July 27, 2005 05:34 PM writes...

But it is important for the press to make us aware that Cisco is doing this. That way, if we do not like it we can choose not to buy Cisco equipment or hold stock in the company.

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