Ning Gaoning: Business will fare much better than people expect
World Insight with Tianwei
Geopolitics is the elephant in the room at this year's Summer Davos. Whether innovation can still be shared and new economic momentum be achieved has a lot to do with how the international community is going to deal with geopolitics. On that, the business community has a lot to say. On the sidelines of the Summer Davos 2019, CGTN's Senior Correspondent Tian Wei talked with Ning Gaoning, Chair of the Sinochem Group, a straight talker who minced no words.
On the China-U.S. agreement to restart negotiations, Ning believes this type of negotiation will continue for a long time, but "a complete major trading war has been avoided.
"I think this gives the market a strong signal; dispute will continue, but there will not be a major war. Both sides' leaders understand where the limit is, so I think it's a good gesture," said Ning.
He said many contributing factors led to the trade war. "When the initial tariff started, people feel it's not really the material impact of the trade; it's very much the competence, the trust, the investment, the sentiment – everything changed," said Ning.
"The trade tariff only started for a few months, but I think people try to avoid that. They still try to find a solution to that. I think it's good. I think they know where the limit is; it's not going to be a long fight on trade, on technology or other things getting worse and worse. I think nobody will survive or benefit from that," he added.
When it comes to the disruption to the global supply chain, Ning believes business will find a way. In his opinion, business is not a passive activity. Adapting is crucially important to business.
According to Ning, "Business has been globalized; business has been integrated by the value chain, but their governments are still separated. The governments have their own agenda politically. Sometimes they take care of business; sometimes they don't. So, business will have to find a way for themselves."
Ning also noted, "Usually business would find a way much better than people expected."
"The relocation of the supply chain has not started yet. I mean the worst thing is that people relocate their production base, their technology base. So, if that is the case, if that really happened, the world will become two parts. I don't think people are stupid enough to do that," said Ning.
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