|Girish Shetti |||Feb 08, 2017 08:05 AM EST|
(Photo : Getty Images. ) Disney CEO's remark against the trade war comes just as the company announced its fourth-quarter results earlier this week.
A trade war with China and the U.S. would prove to be detrimental, according to Disney's boss Bob Iger. The possibility of a trade war between both nations has been looming since U.S. President Donald Trump assumed office last year.
"An all-out trade war with China would be damaging to Disney's business and to business in general. It's something I think we have to be very careful about," Iger told CNBC.
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Iger's remark assumes importance as he is one of the members of President Trump's business council. Iger was not able to express his views on the trade war at a council meeting last year, as he could not attend it due to prior commitments.
Iger's warning against the trade war is not surprising, given that China is a very critical market for Disney. The Shanghai Disney Resort, which was opened in June last year, was Walt Disney's first big venture in China.
Much to the company's relief, the Shanghai Disney Resort has received positive reviews from the general public and critics.
During a call with investors, Iger described Shanghai Disneyland as "one of our biggest success stories in 2016," adding that the resort has welcomed more than seven million guests since opening its gates last year.
However, for Disney, China's importance goes beyond the theme park business. The Chinese market is equally important for its movie and television business, both of which are growing at a stupendous pace.
Disney CEO's remark against the trade war comes just as the company announced its fourth-quarter results earlier this week. The company's year ending revenue remained flat due to pressure on its advertising earnings, with its sales revenue falling to $14.8bn (£11.8bn).
Iger revealed during the investor's call that he is open to extending his term if it serves best for the company.
Donald Trump Going all out against China
Trump relentlessly targeted China's trade practices during his explosive election campaign, labeling China as a "currency manipulator" and "job theft." Trump even warned during his election campaign that China would behave under his presidency.
His relentless attack left many critics wondering that will there be a trade war between the two economic superpowers, if Trump is elected to the White House.
Many had shrugged off these tirades as mere election rhetoric. But they were proved wrong as Trump continued with his criticisms of China even after his election victory.
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