The ongoing trade war between the United States and China is unlikely to have any major impact in the short term because it takes time for companies to adjust their supply chains, according to the CEO of DBS Group.
The short-term impact of the trade tensions "might be exaggerated," Piyush Gupta told CNBC's "Capital Connection" on Monday.
"The assumption that trade is going to fall off a cliff is, I think, unlikely," he said. "Supply chains are not that easy to move. Our own sense is that the technology supply chain will take three, four years to move."
Companies cannot replicate overnight the factories in China that are part of their existing supply chains with new set-ups in other areas of the world, according to the DBS chief.
"You've got to get land, hire workers, build plants. We don't think the actual impact of trade will start getting visible in the 2019 time frame," he said.
As a result, supply chains will not be "in a hurry" to shift away from China and production activity will continue to be "fairly steady," Gupta added.
There are concerns that factory activity in China could slow and the world's second-largest economy might lose its growth momentum due to the trade war.
So far, the U.S. has levied tariffs on an extensive list of Chinese products. Beijing, for its part, responded with duties on products from the U.S., even as President Xi Jinping emphasizes his rhetoric denouncing protectionism.