Sharp Sees U.S.-China Trade War as ‘Opportunity’
According to the Kyodo News, yesterday at a press conference in Tokyo, Japan, Sharp CEO and Chairman Tai Jeng-wu said trade frictions between the United States and China could provide an “opportunity” to expand its business with Chinese companies. The United States is currently threatening an additional 25-percent tariff on $300 billion of Chinese imports, which would include copiers and PCs, in addition to the current 10-percent tariff on some Chinese goods. Tech companies such as Dell, HP Inc., Ricoh, and Foxconn – the parent company of Sharp Corporation – have been shifting some of their manufacturing out of China in order to avoid tariffs.
According to Sharp’s Tai Jeng-wu, while 68 percent of its products are manufactured in China, only 3.8 percent of them, including personal computers and printers, are produced for the United States.
The Sharp CEO also said that Sharp plans to shift production of its computers, produced by its subsidiary Dynabook Inc., from China to Vietnam and Taiwan, after the United States threatened the new 25-percent tariff last month.
According to Tai Jeng-wu, due to the effect of the tariifs, Sharp expects a 1.2 percent decline in sales for its fiscal year that ends in March 2020.
However, Sharp Executive Vice President Yoshihisa Ishida said the trade war could be an opportunity for Sharp: “Chinese companies are expected to expand their businesses elsewhere such as in Japan. Such moves are already apparent, so we are trying to expand our business by supplying new products to them.
“We view the U.S.-China trade frictions not as a risk or a danger but as an opportunity.”
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