Legend CFO apologizes for inaccurate statement, vows greater investment in China

Source:Global Times Published: 2019/5/25 11:46:51

The chief financial officer of Legend Group apologized for his inaccurate remarks in dealing with US tariff pressure to Chinese goods.

Legend Group CFO Wong Wai Ming recanted his earlier remarks of moving its plants out of China to avert Trump's high tariffs, causing an opinion backlash in China. 

Wong pledged to stick to the China market, and will invest $300 million to set up a smart manufacturing base in Shenzhen.    

During an interview with CNBC on Thursday, Wong said Legend Group is well-prepared to face the trade tension between the US and China, and the company has the ability to shift its production to places "without having the impact of the tariffs." 

US President Donald Trump has threatened to add another 25 percent in tariffs on $300 billion worth of Chinese goods, which might influence Chinese electronics. Wong's response was taken as Legend's option to downsize its production in China market to avoid the US tariff pressure, causing great shock and an opinion backlash in China. 

Wong apologized in a statement for his inaccurate expressions in the interview on Thursday, which, according to him, lead to media's and the public's off-the-track interpretations.

He first restated Legend's ability to face the US policy changes as an international company which has established a mature and intelligent supply chain with business spanning 180 countries and regions. It has 36 plants in Asia, Europe, North America and South America, among which 11 are Lenovo's own. 

Wong said in his statement that this global production chain could be helpful in meeting the challenges from region policy changes, and its competency comes from sticking to smart Chinese manufacturing.

Lenovo announced plans to invest over 2 billion yuan ($300 million) to set up a new smart manufacturing base in Shenzhen in the next two to three years on Friday. Wong ended his statement by saying that the Legend Group will continuously increase its investment in smart Chinese manufacturing to make greater contributions to the intelligent transformation of China.

Global Times



Posted in: MARKETS,BIZ FOCUS

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