Maersk CEO highlights China's economic strength, plans to expand investments

Maersk, the world's leading global logistics company, has expressed confidence in China's economic vitality and revealed plans to expand investments to meet the rising demand in the local market.

Vincent Clerc, CEO of A.P. Moller - Maersk, the world's leading logistics company with nearly a century of ties to China, emphasized Maersk's confidence in China's sustained economic growth and its position as a global trading hub, during a Friday interview with China Global Television Network (CGTN).

Earlier on Friday, Clerc joined over 40 global chairmen and CEOs, along with business council representatives, at a meeting in Beijing where Chinese President Xi Jinping delivered a speech to boost foreign investors' confidence in China.

During the interview, Clerc discussed China's commitment to expanding market access and attracting increased investment from multinational corporations.

"I think it's always important to stay close in times of uncertainty to your core markets, your core customers, and your core stakeholders. And it was a pleasure to attend a meeting today with President Xi and some international CEOs, and hear his perspective about the future for the Chinese economy and the stance of China in the middle of all this uncertainty, restating the commitment of China to being a beacon of stability, to focusing on quality growth both in terms of manufacturing, but also in terms of the consumer market here in China, and how welcome international companies are still in China to continue to develop and bring about both prosperity for themselves and for the Chinese market through their activities," said the CEO.

He emphasized that the company's investment in Shanghai's Lingang Special Area demonstrates its strong commitment.

"We have a significant position in warehousing and distribution in China. We have actually a very large investment in Lingang, just outside Shanghai, which will be coming online later this year and will provide absolute state-of-the-art warehousing services. And it will be a really amazing facility to serve Chinese consumers. So, we look very much forward to the opening in November and we continue to review the many other opportunities that there will be to invest. I think for us, since the 100 years that we've been doing business in China, we have followed the needs of the Chinese market. These things have greatly evolved over that century and they will continue to evolve at a big pace in the coming years. And we will be there to support them and make the necessary investment, whatever it is necessary," Clerc said.

Maersk CEO highlights China's economic strength, plans to expand investments

Los Angeles is grappling with rising costs and delays in its wildfire recovery process, as tariffs on construction materials imposed during the Trump administration compound the challenges.

The devastating wildfires recently destroyed over 17,000 homes and businesses, leaving communities urgently pushing forward with reconstruction.

The Trump administration has recently rolled out new tariffs on a wide range of construction materials, including steel and aluminum, from the main trading partners of the United States, such as Canada, Mexico, and China. This has significantly driven up costs, further complicating the recovery efforts

"As the city and county of Los Angeles move aggressively to rebuild the wildfire areas in Malibu, Pacific Palisades, and up in Altadena, to build those houses, we need softwood lumber, aluminum, and steel from Canada," said Gene Soroka, executive director of Port of Los Angeles.

While the tariffs aim to boost domestic production, the transition will take time. In the interim, the shortage of materials is creating ripple effects across the construction sector.

"We are still handling a lot of imported steel, despite the tariffs because there's not enough American manufacturing of steel right now. So, one of the unintended consequences that this has done the wrong way is you don't have enough steel. That impacts construction, that impacts economic growth across the board," said Weston Labar, chief strategy office of Waterfront Logistics.

According to the Associated General Contractors of America, housing costs could skyrocket by almost 50 percent, widening the gap between insurance payouts and actual rebuilding expenses. It may force many homeowners to delay or even abandon their reconstruction plans, prolonging the housing shortage in Los Angeles.

Tariffs are also driving up prices for other products, impacting recovery efforts.

"We need appliances from Mexico, furniture from China, and all of those prices are going up, whether anticipatory, or real as these imports are coming across our port complex. So, we've got to have some pretty detailed discussions about this because families who want to rebuild, businesses who want to get back into the office are going to be impacted by these tariffs one way or another," said Soroka.

As Los Angeles strives to recover, the economic uncertainty caused by tariffs presents a formidable obstacle.

Tariffs add strain to Los Angeles wildfire recovery efforts