Lenovo CEO warns that US-China trade war will cripple businesses on both divides
In every war throughout history, there has always been casualties. Whether they played a direct part in the war, or were inadvertently victims of it, it’s crystal clear that war is bound to have catastrophic results.
Today, various parts of the earth still experience the effects of war. However, some scientists claim that humans are currently living in the most peaceful time on earth.
So much so that a majority of battles have transcended from a less physical, to a more economical perspective. Take for example the current Trade Wars between USA and China
Imposing Tariffs at Will
A couple of crippling tariffs later, and the US and China are now looking to subsequent steps that will help defuse the strife between the two.
So much so that the CEO of Chinese computer megalith Lenovo, is calling on both parties to sort out their differences for the benefit of both countries and their respective businesses.
In a press statement in New York last week, Mr. Yunaqing Yang, Lenovo’s top man, cautioned that in this prolonged trade war, there would be no winners and that both countries would suffer catastrophic economic failures.
In a brief interview with CNBC, Yang commented more on the current trade war, stating that as a global company, they felt that these tense conditions were not favorable for both the economy as well as its consumers.
In turn, he believes that both governments should dialogue with one other to come to a suitable agreement.
Trade War Not Beneficial to Both Countries
It’s no doubt that Lenovo’s business could be drastically affected by the current standoff that has seen new tariffs imposed on goods and services worth billions of dollars from both countries.
In fact, President Donald Trump earlier this month threatened to apply new tariffs on Chinese goods totaling $200 billion. This comes after the $50 billion in tariffs that both nations have already imposed on each other.
Reduction in Trade Inevitable
That being said, such aggressive economic strategies from both countries are hurting Chinese companies such as Lenovo, despite the fact that the company leads the likes of Apple, Dell, and HP as per worldwide market shares, and the total number of PC’s that have been shipped. This is as per data released by Gartner.
Interestingly, Lenovo’s largest market share is Europe, China, and the Americas, which account for roughly 80-85% of all its sales.
Due to its diversity in chain supply and market, Lenovo is one of the few countries that has plants in Switzerland, Brazil, Japan, India, Singapore, among many other regions. That being said, research company Hoovers believes that the tech giant could be positioning itself to weather an economic storm brought about the China USA trade war.
Indeed, Chinese exporters in the technology sector are bound to face a myriad of financial problems if two of the world’s biggest economies do not settle their differences.
As a matter of fact, data released on Chinese exports shows that they have experienced a massive decline in the month of August, as the two nations continue with their ongoing scuffle.
In a July blog post by staff vice president of international trade, Mr. Sage Chandler, the current tariffs being imposed will, in turn, make online trade more expensive for each and every individual.
What’s at stake with this trade war?
The ongoing trade war was first kickstarted on July 10, when President Trump unveiled a list of tariffs that would target over $200 billion worth of goods and services, starting from construction materials all the way to various food ingredients.
To implement the plan, he advised his trade tsar on August 1 to see whether it was viable to raise these tariffs to on the different goods to about 25 percent.
In retaliation, China began enticing European politicians and businesses to invest in their favor, with promised of better investment terms and improved market access.
This followed after the White House imposed a 25 percent tariff on July 6th on imports worth $34 billion from China; specifically in the manufacturing sector.
In turn, Beijing imposed a similar tariff on the USA, which further included American Soybeans.
That being said, both the USA and China have already imposed tariffs on agricultural goods, aluminum, and steel, severely affecting exporters on both sides.
More in Business
The Crazy Story About How Comedian Katt Williams Allegedly Lost $59 Million of His Fortune
It’s ironic how it’s actually comedians, whose job is making other people laugh, that usually tend to live troubled and unhappy...July 1, 2019
Here’s Why These Nuns and Katy Perry Are Fighting Over Multi-Million Dollar Former California Convent
Katy Perry has been involved in quite a few controversies throughout her career as a pop star. But none of them...June 30, 2019
Rihanna is Living Her Best Life With Billionaire Boyfriend Hassan Jameel — Here’s Proof
Rihanna has surely gone a long way from her humble beginnings in her home country of Barbados. Not only is she...June 30, 2019
Gayle King Signs a Huge Contact with CBS, And You Won’t Believe How Much She’s Being Paid!
The renowned TV host, Gayle King, has knocked the ball out of the park with her recently CBS renewed contract that...June 29, 2019
The Amazing Story of How Will Smith Became a Real Life ‘Fresh Prince’ With an Expansive Real Estate Portfolio
Will Smith has had one of the most interesting career tracks in Hollywood. Starting out as a rapper donning the name ‘The...June 23, 2019
Experts Say That You Can Never Succeed in Business If You Do This
Everyone wants to be a successful businessman, but over time, we notice that some people have a better chance at being...June 23, 2019
Pink Lost the Grammy But Her Kids Consoled Her With This Heartwarming Gift
There is no better consolation for an entertainer than winning a Grammy Award. Every star wants to hold that prestigious award in their...June 20, 2019
Are The Presleys Broke? Elvis’ Ex-Wife Priscilla is Selling This Property to Save Her Daughter
With how popular the late Elvis Presley remains to this day, most people would think that his immediate family will all...June 19, 2019
Jay-Z Just Declared World’s First Ever Billionaire Rapper–Here’s the Surprising Non-Music Business That Bolstered His Fortune
It’s no secret that entertainers earn a lot of money. But not many of them can accumulate a billion-dollar fortune. Rapper-turned-businessman...June 19, 2019