Leading technology firms Cisco and IBM are facing the impact of backlash from the US government's spying scandal on its sale of their products and services in China, according to a CNET report.
 
According to the report, in the backdrop of black lash in China against revelations about US government surveillance programmes worldwide, Cisco may lose 10 percent of its revenue this quarter and continue to drop until the middle of 2014.
 
Cisco's shares fell 10 percent in late trade. CENT has quoted Evercore Partners analyst Mark McKechnie as saying that the US government isn't doing any favours for Cisco.  Cisco's shares fell 10 percent in late trade.
 
The whole drama started in June after former US National Security Agency contractor Edward Snowden revealed the spy agency had hacked network backbones around the world to gain access to sensitive information, the report said.
 
This created confusion following the media hype and there were report of China thinking in terms of “using its market power to create indigenous software and hardware capabilities”.
 
The report said that Beijing has long mistrusted foreign technology companies, China executives said, and the Snowden revelations have exacerbated those concerns.
 
International Business Machines Corp and Microsoft Corp may also face difficulties selling their goods and services in China
 
"All the big US IT companies are concerned, but so far Cisco is bearing the brunt of it  Jim Lewis, a senior fellow with the Center for Strategic Studies told Reuters.