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“The trade war has been a valuable lesson for companies on what their supply chain strategy should be moving forward. “Companies will continue to diversify their supply chain despite the truce,” said Vivien Cheong, regional sales manager APAC at Ticontract & Tim Consult.

With no guarantees that the tariff war will end any time soon and with the benefits of diversification becoming clearer to original equipment manufacturers (OEMs) by the day, supply chain insiders expect further migration of production out of China to other parts of Asia. Issues with market access and regulatory restrictions (21.1%) and rising labor costs (19.7%) were also prominent push factors.

to pull back from another escalation of their mutually destructive tariff war is unlikely to stop the continued migration of multinational corporations (MNC) from China as they seek to avoid tariffs and diversify risk.Īs reported in FreightWaves earlier this month, a shipper survey by Resilience360 found that 36.1% of those companies looking to relocate operations from China to another country were doing so because of prohibitive U.S. This material may not be published, broadcast, rewritten or redistributed without permission.Author: Mike King Originally published at /The decision by China and the U.S. “Through our work in the past year, we can finally see the light at the end of the tunnel.”Ĭopyright 2021 The Associated Press. “We’ve been fumbling in a pitch black tunnel for three years,” Gu Gong wrote, according to the Post. The head of a government-appointed committee in charge of restructuring HNA debts wrote to 100,000 employees urging patience and hard work to get through the crisis, The South China Morning Post newspaper reported. Its cargo handling and other companies employed thousands of people in the United States and Europe.Īs many as 500 companies linked to HNA are expected to go through restructuring, the business news magazine Caixin reported, citing unidentified sources. reported assets of 1.2 trillion yuan ($170 billion), including stakes in Deutsche Bank and Hilton Hotels. Fosun acquired French tourism brand Club Med and insurers in South Korea and Europe.Īt its peak, HNA Group Ltd. Wanda bought Hollywood film studio Legendary Entertainment. The company was taken over by regulators in 2018 and relaunched as Dajia Insurance. The founder of Anbang, which bought New York City’s Waldorf Astoria Hotel in 2014, is serving an 18-year prison term for fraud and embezzlement. They gave no indication whether anyone was accused of breaking the law.Įxecutives of other ambitious Chinese conglomerates have faced criminal charges for embezzlement and other abuses. The companies referred to “capital occupation,” or money that is held improperly. In statements through stock exchanges in Shanghai and the southern city of Shenzhen, HNA Group companies said they need to retrieve or clarify the status of money paid out to unidentified major shareholders and others.īusiness news outlets including China Economy Weekly put the total at up to 100 billion yuan ($15 billion). The Hainan government took control of the company last February. HNA Group was struggling under $75 billion in debt when its core aviation business was devastated by the shutdown of global travel last year to fight the coronavirus pandemic. They were supported by low-cost loans from state banks and borrowing from the public. HNA, founded in 1993 as Hainan Airlines with one plane, was among companies including Anbang Insurance, Wanda Group and Fosun Group that went on a buying spree starting in 2014, acquiring hotels, sports teams and other assets. A spokeswoman for the Higher People’s Court of Hainan who would give only her surname, Wu, said she could release no information. HNA’s status was unclear Monday, three days after it said creditors want the company declared bankrupt by a court in Hainan, the southern island province where the company is headquartered, to declare HNA bankrupt because it couldn't pay its debts.

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The announcements highlight the tangled finances of HNA, the latest in a series of Chinese would-be global conglomerates that are struggling with debt and accusations of mismanagement after explosive growth and foreign acquisitions. BEIJING (AP) - Companies that are part of HNA Group, a Chinese conglomerate that says creditors want it declared bankrupt after a global acquisition spree, want to recover as much as $15 billion that might have been paid out improperly to major shareholders.

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