Reklam
Reklam
Reklam
Reklam
Reklam

Li & Fung sees much to be happy about in Sino-American trade war

LI & FUNG, the world's largest supplier of consumer goods from China, is strangely optimistic about the outcome and its role in the Sino-American trade war

Li & Fung sees much to be happy about in Sino-American trade war

LI & FUNG, the world's largest supplier of consumer goods from China, is strangely optimistic about the outcome and its role in the Sino-American trade war

12 July 2019 - 19:00

LI & FUNG, the world's largest supplier of consumer goods from China, is strangely optimistic about the outcome and its role in the Sino-American trade war.

'We're pretty optimistic, because it turns out that this will create the biggest opportunity for us in the last 20 years,' said Li & Fung CEO Spencer Fung, according to Bloomberg.



'The more complex the world is, the more suitable for companies like ourselves, because we have a diversified network,' he said.



'If you say the status quo and don't change, new forces will come in and eat up your value year after year. And that's what happened to us.



'We didn't change fast enough. Now that we're innovating on digital and building a faster global network, we're providing value. We're not at the bottom yet, but I can actually see the bottom for the first time in many years,' Mr Fung said.



The company, whose customers include Walmart and Nike, is being pushed by worried US clients to accelerate a shift away from China, putting factories there at risk.



The CEO spoke to Bloomberg about the transformations taking shape. Comments have been edited and condensed, said Bloomberg.



Mr Fung said that while the tariffs caused an upheaval to the global supply chain, there were opportunities for factories, multinationals and Li & Fung itself.



In China right now, he said, there are a lot of factories with fewer orders. They're actually getting desperate. They need to fill the capacity, so they're offering actually pretty good prices to anybody, he said.



'It is a buying opportunity for European retailers and any non-US retailer. Last year was the beginning. Now, more and more so. The Europeans will come, the Japanese will come, and Southeast Asian companies will come. Domestic production will take more of the capacity, so it won't just go away,' Mr Fung said.



Li & Fung has also advised Chinese manufacturers moving out of China. They will reduce producing in China over time, but continue to operate the factories, but they will be outside, he said.



'They will be in Pakistan, Bangladesh, Indonesia, India and so on, but they will still control everything from China. That's the evolution we've seen in most countries and this will happen to China as well,' he said.



'For the next 10 years, China will continue to dominate non-apparel. China is absolutely the fastest country because it's got all the supporting industries around,' he said.



'If you want something fast, like fast fashion, China is the place to go. Also, China is very good with small production. It has a lot of natural advantages, and they continue to advance.



'What's ahead for the next decade in global trade? The next decade is going to be diversification. Because of the lack of control of what happens and the lack of protection, diversification is the only way to managing risk today, because there's no safe haven out there.' Mr Fung said.


WORLD SHIPPING

This news 103 hits received.