CNBC AI Exclusive | May 22, 2025 — Lenovo Chairman and CEO Yang Yuanqing reaffirmed the tech giant’s commitment to China as its strategic manufacturing hub during the company’s quarterly earnings call, while highlighting a globally diversified production model designed to navigate geopolitical complexities.
In a robust defense of China’s industrial ecosystem, Yang emphasized that the country’s manufacturing advantages remain “unmatched” due to cost-efficiency, vast supply chain integration, and economies of scale. “Our ‘China+N’ strategy starts with acknowledging that no other nation currently parallels China’s manufacturing infrastructure,” he stated. “Producing a single PC unit here costs at least $10 less compared to other regions—a gap that widens significantly in many cases.”
The executive revealed that over 70% of Lenovo’s core component manufacturing and final assembly still occur in China. However, the company has strategically expanded its footprint to include 30 production facilities across 12 countries, from Mexico to India, since 2020. This dual approach allows Lenovo to address localized market demands, tariff considerations, and regional compliance requirements while maintaining cost discipline.
Yang framed this balance as critical for “building supply chain resilience without sacrificing competitiveness.” The model has yielded measurable results: Lenovo reported record annual revenue of ¥498.5 billion ($69.2 billion) for FY2024/25, marking 21.5% year-over-year growth. Adjusted net profit surged 36% to ¥10.4 billion ($1.44 billion), underscoring improved operational efficiency.
Analysts note that Lenovo’s hybrid strategy reflects broader trends among multinationals seeking to optimize for both cost and risk mitigation. “China’s manufacturing moat persists, but smart companies are layering geopolitical contingencies,” said tech sector analyst Marina Chen of Bernstein. “Lenovo’s 30-factory network acts as an insurance policy amid shifting trade dynamics.”
The company’s manufacturing blueprint now services 180 markets, with regional facilities specializing in last-mile customization—a critical edge in competitive PC and server segments. While declining to comment on specific tariff scenarios, Yang hinted at “active contingency planning” as global trade frameworks evolve.
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