Chinese PC maker Lenovo says US-China tariff pause a positive sign
BEIJING:
China
's
Lenovo
said on Thursday the tariff pause between Washington and Beijing was positive and growth in China's AI infrastructure remained strong despite U.S.-China
tech tensions
.
"The truce is a positive situation," said Lenovo's CEO Yang Yuanqing in an interview with Reuters after the world's largest maker of personal computers released its fiscal first-quarter results.
"We feel better than the previous quarter - it brings us more certainty rather than uncertainty."
The U.S. and China have extended a tariff pause for another 90 days to November, averting triple-digit duties on each other's goods and offering temporary relief to businesses on both sides.
Lenovo's overall revenue for the three months ended June 30 climbed 22% year-on-year to $18.8 billion, exceeding analysts' expectations of $17.4 billion, according to LSEG data.
Yang attributed the performance to strong AI demand in its three major business segments, each scoring double-digit growth in the first quarter, and said U.S. tariffs on Chinese goods had so far not had much impact.
Chinese exports to the U.S., including PCs, currently face a 30% levy, despite the tariff truce. Yang said the U.S. accounted for less than 20% of its total revenue.
Net profit attributable to shareholders increased 108% year-on-year to $505 million, well ahead of the consensus estimate of $307.7 million.
Lenovo's shares fell 3% in early trading on Thursday, against a 0.4% rise in the Hang Seng Index. However, the stock has climbed 15% over the past three months, outpacing gains in the benchmark.
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