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Larry Fink, chief executive officer of BlackRock Inc., speaks during a Bloomberg Television interview in New York, U.S., on Wednesday, April 19, 2017.
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Companies are moving their supply chains out of China instead of waiting for a trade resolution between Washington and Beijing, BlackRock Chairman and CEO Larry Fink told CNBC on Friday.
“We’re hearing from CEOs that more and more supply chains are moving out of China right now, ” Fink said on “Squawk Box. ” “People are not waiting, companies are not waiting to see what the outcome is.”
The trade war between the world’s two largest economies has been going on for about a year, and businesses are starting to feel the repercussions. More than 50 multinational companies are moving production out of China, including Apple, Nintendo and Dell, CNBC previously reported.
President Donald Trump has slapped 25% tariffs on $200 billion worth of Chinese goods and continues to threaten duties on an additional $325 billion of goods as trade negotiations continue.
At the same, the Chinese economy is starting to lag, having grown just 6.2% in its second quarter. That’s the weakest rate in at least 27 years.
“I do believe the trend in China continues to be downward, ” said Fink, co-founder of the world’s largest money manager. “I think longterm, China knows they need to find ways to stimulate more of their domestic economy.”