Geopolitical complexities

Lenovo CEO Yang Yuanqing reiterated China’s role as its core manufacturing base, citing unmatched cost-efficiency and supply chain integration, while pursuing a “China+N” global production strategy to address geopolitical risks. Over 70% of core manufacturing remains in China, but the firm has expanded to 30 facilities across 12 countries since 2020, balancing localized needs with cost control. This hybrid approach drove record FY2024/25 revenue of ¥498.5 billion ($69.2 billion), up 21.5% annually, and a 36% profit surge. Analysts highlight Lenovo’s model as a blueprint for multinationals combining China’s manufacturing strengths with global risk diversification amid shifting trade dynamics.