China knows what's at stake with trade war, Bain Capital co-chair says
Canadian brands may become somewhat of collateral damage from the ongoing trade battle between the U.S. and China.
Bain Capital co-chairman Stephen Pagliuca is hoping that the world’s two largest economies can find common ground on trade.
“I think the bigger picture is resolving the whole trade situation and hopefully there’s enough on the table for both sides to do that,” Pagliuca told FOX Business’ Liz Claman from the World Economic Forum in Davos, Switzerland on Wednesday.
Canada Goose, a Toronto-based winter clothing manufacturer, recently became the target of Chinese social media and the Global Times, a state-run tabloid paper. Both called for a boycott of the brand in response to the arrest of Huawei Chief Financial Officer Meng Wanzhou on Dec. 1 in Vancouver, after American officials requested Canada extradite the executive to the U.S.
Despite the trouble in China, Canada Goose opened its first store in China’s Sanlitun district in late December. Chinese consumers make up one-third of the world’s luxury market.
Bain Capital invested in the maker of the luxury parka back in 2013, bringing the company public four years later.
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Pagliuca is optimistic that discussions between Washington and Beijing are headed in the right direction, and hopes cooler minds prevail to remedy the trade conflict weighing on both countries.
“[China’s] progress over the last 20 years has been unprecedented and they kind of gotten through almost every blip that’s been out there,” he said. “I think they realize what’s at stake here.”