The Sino-US trade war is affecting the pace of global expansion of individual mainland enterprises. Yang Yuanqing, chairman and chief executive officer of Lenovo Group (0992), said that the temporary US tariff measures did not involve computers and mobile phone products, so it had little impact on the group’s business. However, the Group has made emergency measures for possible future tariff measures to minimize the impact. However, the emphasis is on respecting the laws of any country in the local area, and the group will abide by the law.
He also pointed out that Huawei is an important partner of the Group’s personal computer business. Huawei will maintain business relations with customers in compliance with laws and regulations. Qualcomm and Intel are also important partners of the company, and they still maintain relationships, suggesting that Qualcomm and Intel will continue to supply mobile phone chips.
Emphasize that supply is more flexible than competitors
He mentioned that there is currently no adjustment to the global supply side, but the Group, as a global company, has production plants everywhere, including production and supply there, and is more flexible in terms of supply than its competitors.
Lenovo’s PC and mobile device business posted a 34% increase in pre-tax profit to $1.98 billion, and revenue rose 14% to $38.48 billion, a record high. Gianfranco Lanci, president, and chief operating officer of the company, said that although the trade war continued, the market share of the personal computer business in the United States was 15%, which was lower than that of the competitors. It is believed that the impact of the increase in tariffs is not significant. I believe that the group’s target will still be achieved in the future.