Cisco denies China monitoring accusations

When China first installed its networks, users had no choice but to buy Cisco's equipment since domestic companies did not own certain technologies, he added.

"Cisco was to the networking industry what Boeing or Airbus were to aircraft manufacturing. The situation only gradually changed as Chinese players like Huawei Technologies Co Ltd and ZTE Corp grew in recent years," he said.

Xu Qi, a Beijing telecom industry expert, said the Chinese authorities should conduct investigations into Cisco's network in China.

"Based on sound evidence, market restrictions should be adopted, if it truly represents a threat," he said.

Chinese telecom equipment giants Huawei and ZTE have been banned from selling their products to major US carriers after being accused of posing a potential threat to US national security. Both have denied the allegations.