US-China trade war has caused major shift in global trade landscape, says Li & Fung
- US-China trade war has created an increasingly complex global trade environment, especially for the logistics industry, says global trading group Li & Fung
- Companies should diversify their sourcing base to avoid tariffs and consider onshoring in major consumer markets, Hong Kong company says
Global sourcing and logistics giant Li & Fung said the ongoing US-China trade war has created a new trading landscape that has complicated global supply chains and had “huge impact” on the company.
But the logistics industry is now facing an extremely complex global trade environment, especially when it comes to customs regulations, said Ka-mun Chang, managing director of Li & Fung Development (China).
“This is the major new landscape. This is all related to geopolitics,” Chang said. “It does not optimise our supply chain. I would say that it has a huge impact on us.”
This is the major new landscape ... It does not optimise our supply chain. I would say that it has a huge impact on us
The rise of bilateral trade agreements and regional trade pacts underscored the deterioration of the multilateral trading system, showing the challenges faced by the World Trade Organisation (WTO) in administering common rules and resolving trade disputes, Chang said.