Li & Fung unafraid of China-US trade wars
With increasing threats of a Sino-US trade war as tariffs have been imposed and soybean subsidies made the news last week, one of China’s biggest companies has said it is unafraid of the potential damage.
Li & Fung, which is one of the biggest merchandise sourcing agents in the world, has had a confident response to concerns.
The company has stated that its strong global presence will help it “absorb any shock from possible international trade conflicts”.
At a press conference last week to announce the company’s 2017 financial results, CEO Spencer Fung said: “We have a global network of 15,000 suppliers in over 40 markets. We are well positioned to weather any trade uncertainty.”
He added: “The Trump Administration’s tougher, protectionist stance on trade may disrupt the sourcing landscape. Potential tariff hikes and new trade policies may accelerate the diversification of the production base away from China.”
Trump remains prepared to impose yet more tariffs worth up to $60bn on China, which is causing concern among Chinese businesses despite the US’ previous steel and aluminium tariffs having little impact.
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