Disney CEO: Trade war with China 『unfortunate & devastating』

Disneyland might be the 「happiest place on earth,」 but a possible trade war with China could dampen the cheerful mood of its parent company.

In an interview with American TV network CNBC, Disney CEO Bob Iger said President Donald Trump』s approach toward China — which no one is still sure about yet — could result in a bleak outlook for many American businesses.

「The relationship this company has with China is certainly important – from a movie perspective, from a park perspective, from a consumer-product perspective,」 Iger told CNBC on Tuesday. 「Our trade war with China would be damaging to our business – Disney』s business and business in general.」

For Disney, China is an important market with a lucrative growth potential, and the company has funneled billions of dollars in investments.

The 5.5 billion US dollar Shanghai Disneyland Resort which opened last year, according to Iger, is the 「biggest step」 the company has taken.

「China represents a great market for Walt Disney,」 he told CNBC last year.

Since the theme park opened on June 16, it has attracted more than 7 million visitors.

「Fiscal 2016 was our sixth consecutive year of record results, highlighted by the opening of Shanghai Disney Resort …,」 Igar was quoted as saying in the company』s annual report.

「It』s doing really well,」 Igar said in his latest interview. 「It』s a national destination in China already.」

However, it hasn』t been a smooth ride for Disney in China.

In April, just five months after its partnership with Chinese e-commerce giant Alibaba, Disney』s video streaming website was shut. Chinese billionaire Wang Jianlin, whose company operates the Dalian Wanda brand theme parks, has also publicly declared war on Disney, saying it would stop the American company from profiting in the Chinese market.

And Disney's battle doesn't end here. As the Walt Disney Company partnered with Shanghai Media Group Pictures to produce Disney movies from China, Wanda Group has spanned its business at home and in Hollywood, acquiring Legendary Entertainment, AMC Entertainment theater chain, and most recently Dick Clark Productions.

But as Chinese companies expand their footprints globally, President Trump has warned US companies for making such a move, which might likely hurt companies like Disney foraying internationally.

Over Twitter, one of his most-preferred means of communicating with the masses, Trump warned of slapping 35 percent tax on products from companies that manufacture them across the border and sell them in US markets.

「There will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units etc., back across the border … Please be forewarned prior to making a very expensive mistake!,」 Trump said in a series of tweets in December.

Trump has also proposed a 45 percent tax on Chinese imports to the US.

「I would tax China on products coming in,」 Trump said while meeting with the New York Times Editorial Board in January. 「I would do a tariff, yes — and they do it to us.」

But it』s still not clear yet if Trump would sign another order, translating his words into actions.

「I don』t know that we know for sure what President Trump』s approach is,」 Iger said.

「It』s not to suggest that there shouldn』t be things on the table to improve the trade relationship with China, but it would be unfortunate if we entered in a trade war,」 he said. 「It would do a lot of short term damage to our businesses.」