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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