Mel Lagomasino on Bloomberg TV: How Tensions with China Could Impact the Tech Sector

September 13, 2023

 
In light of China’s widening curbs on iPhone use, which have resulted in Apple’s biggest two-day drop since November 2022, Bloomberg Technology’s Caroline Hyde and Ed Ludlow turned to WE Family Offices CEO and Managing Partner Mel Lagomasino for insight on how the growing geopolitical tension between the U.S. and China may have implications for both the technology sector and the economy as a whole.

“I think it’s a tremendous risk. I think in China, politics is going to trump economics,” says Lagomasino. “It’s important to recognize that China’s political agenda is so strong and important to the government that it will trump even the fact that it will hurt their own people, as they ban some of the uses of Western products.”

With tensions with China occurring simultaneously with the artificial intelligence boom, many tech investors are beginning to question whether the risks outweigh the opportunities. While the bans in China do pose a major risk, Lagomasino believes that investors should not give up on the tech sector quite yet.

“What’s great about U.S. businesses is that they reinvent themselves and figure out how to deal with these risks,” says Lagomasino. “There’s already a tremendous amount of de-shoring and de-risking going on in terms of China. I would give more weight to AI than I would to China.”

 

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