Li & Fung will weather the storm of China-US trade wars, says CEO

Li & Fung, one of the worlds biggest merchandise sourcing agents, said its strong global presence will enable it to absorb any shock from possible international trade conflicts.

The supply-chain giant generates about two thirds of its revenue from the US and is among firms expected to be most at risk from a potential China-US trade war.

“We have a global network of 15,000 suppliers in over 40 markets,” said Spencer Fung, the company’s chief executive officer, at a press conference announcing 2017’s full-year results on Thursday. “We are well positioned to weather any trade uncertainty.”

His comments came as US President Donald Trump is reportedly poised to announce an estimated US$60 billion tariff package on Chinese products on Thursday. Everyday consumer goods such as clothing and footwear could be on the hit list, although tariffs would mainly target China’s high-technology sector.

Restrictions on Chinese investments in the US could also be announced, according to US Trade Representative Robert Lighthizer.