Walt Disney's CEO, Bob Iger, has warned that a trade war between the US and China would be damaging for business. China is increasingly important for Disney's movie and merchandise sales, besides, China is a huge market and Disney has been expanding there.
Disneyland Shanghai has become the first theme park in China, it was one of its greatest success stories in 2016. But there are fears protectionist policies by Donald Trump could set off a trade war between US and China.
"An all-out trade war with China would be damaging to Disney's business and to business in general," according to Disney's CEO. During his campaign, Trump threatened to impose a 45% tariff on Chinese products.
Disney is facing some challenges but China is a good market
Disney reported that sales unexpectedly fell to $14.8bn (£11.8bn) in the three months to the end of December, which is 3% less than the same period a year ago. It was due to a drop in advertising earnings at its cable network ESPN and a 7% fall in revenues at its movie business.
The relationship between China and Disney is very important from a movie perspective, a parks perspective and a consumer products perspective according to Disney CEO. Since last June, Disneyland Shanghai has received more than 7 million visitors, tickets had been sold over most of the Lunar New Year holiday period.
Trump's economic and immigration policy
During his election campaign, Trump threatened to impose punitive tariffs on China, Mexico and other countries he blames for the loss of US manufacturing jobs. Trump also criticised China for manipulating its currency.
Iger was also critical of an executive order signed by Trump barring migrants and refugees from certain Muslim countries. The Disney CEO believes that US must not shut its borders to immigrants.
