Tech giant Lenovo says it's 'well-prepared' if the US slaps more tariffs on China

Key Points
  • Lenovo said that it could shift some production away from China if the U.S. slaps additional tariffs on Chinese products.
  • President Donald Trump has threatened tariffs on another $300 billion worth of Chinese goods.
  • "We obviously are well-prepared in the event that it happens," Lenovo CFO Wai Ming told CNBC.
Lenovo is 'well-prepared' for an increase in US tariffs, CFO says

Chinese technology firm Lenovo, one of the world's largest PC makers, can shift production to other countries if the U.S. slaps more tariffs on China, the company's finance chief told CNBC.

President Donald Trump has threatened an additional round of tariffs on $300 billion of Chinese imports which could include consumer electronics.

Lenovo said it has a global manufacturing footprint and could shift production elsewhere if extra tariffs were imposed on China.

"We obviously are well-prepared in the event that it happens," Lenovo CFO Wai Ming Wong told CNBC.

"We have definitely the ability to shift some of the production … from the impacted countries like China to the countries where we can continue to without, I think, without having the impact of the tariffs," he added.

Lenovo reported profit of $597 million for its fiscal year which ended March 31, from a loss of $189 million in the previous year.

Lenovo later provided a statement on the executive's behalf, clarifying the comments he had made to CNBC.

"As a company that operates in 180 countries in the world, Lenovo has set up a flexible supply chain with global footprint," the statement said. "We have 36 manufacturing facilities in Asia, Europe, North America and South America, out of which 11 are owned by Lenovo."

"Even if certain regulations in certain markets might have impact on us, we have the flexibility to mitigate the potential impact by our global supply chain that is rooted in China and geographically balanced."

Lenovo also announced on Friday that it would invest $300 million in setting up a new factory in Shenzhen, China in the next two to three years.