Blackstone's Schwarzman sees 'relaxation' of trade tensions but not in tech
CGTN Global Business
China and the United States achieved substantial progress in multiple areas including agriculture, intellectual property rights protection, exchange rates, financial services, expansion of trade cooperation, technology transfer and dispute settlements after holding a new round of high-level economic and trade consultations last month.
Stephen Schwarzman, chairman, CEO and co-founder of Blackstone, expects to see an overall gradual relaxation of trade tensions. But the private-equity guru considers that the situation in tech area will be hard to change in the near term.
"We have a number of things going on between China and the U.S. We're going to have an overall gradual relaxation of trade tensions," he told CGTN on the sidelines of the Web Summit 2019, held in Lisbon, Portugal from November 4 to 7.
Schwarzman believes that there's good faith between the two countries to get a trade deal, and he anticipates that "there'll be a second agreement that's done several months after the first one is signed."
"In tech, it's different. Tech area won't be able to follow (get a deal) like the other ones," he anticipated.
Recent WeWork drama makes the market wonder if the tech bubble has returned. "The game isn't over. It's just had a bit of a setback," Schwarzman observed.
In his point of view, the preconditions for success remain and the ecosystem for technology is infinitely more developed. And the only thing changed is evaluation, which "didn't make a lot of sense."
"If they (people) value things the way they were, it looks like they had losses from where that valuation was. But from where the early rounds were, those companies, for the most part, will do fine. So I think it's easy to look at WeWork or any of these other ones that when public went down and say 'game is over.' The game isn't over," he further explained.