Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Arnault Says He Hopes Tensions With China on Luxury Quiet Down

Bernard Arnault has spent €215 million buying dip in LVMH stock.
Billionaire Bernard Arnault said he hopes a planned visit to France next month by China’s Xi Jinping will help smooth trade relations between Paris and Beijing. (Getty Images)

Billionaire Bernard Arnault said he hopes a planned visit to France next month by China’s Xi Jinping will help smooth trade relations between Paris and Beijing.

“I hope the economic tensions will quiet down and that we can continue a solid economic collaboration with China,” Arnault, the chief executive officer of LVMH Moet Hennessy Louis Vuitton SE, told reporters after Thursday’s annual general meeting in Paris.

The comments follow China’s decision to launch a probe into alleged dumping practices by Cognac makers from the European Union. In January, LVMH, the owner of Hennessy Cognac, said it was working with the country on that probe.

That move by China came after France was the main backer of an investigation the EU opened last year into Chinese electric vehicle subsidies.

ADVERTISEMENT

Bloomberg News also reported last year that European cosmetics makers were alarmed over Chinese demands regarding their trade secrets. LVMH owns perfume and makeup brands such as Christian Dior, Guerlain and Fenty Beauty by Rihanna.

Arnault’s hopes for a quick resolution to the trade spats may be disappointed, as the EU is considering several new investigations into China. The bloc is looking into whether Beijing provided illegal support for windparks on the continent, has brought subsidy probes into solar and railway firms, and will shortly launch an inquiry into China’s procurement of medical devices.

Arnault, the world’s wealthiest person, said he believes China will manage to reboot its economy amid soft consumer demand.

Earlier this week, LVMH said first quarter organic revenue fell 6 percent in Asia, excluding Japan, a region which contributes a third of total revenue for the group.

By Angelina Rascouet

Learn more:

LVMH Sales Grow 3% as Luxury Boom Stalls

The result confirms sector-wide fears that luxury demand would continue to slow.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Luxury
How rapid change is reshaping the tradition-soaked luxury sector in Europe and beyond.

The Existential Threat to Independent Brands

This week, The Vampire’s Wife announced its closure and Dion Lee called in administrators, only days after Mara Hoffman said it was shutting down and Roksanda narrowly escaped administration. Many more may follow.


How Chopard Seizes the Red Carpet Spotlight in Cannes

The Swiss brand out-sparkles rivals with a strategy aimed at driving sales as well as image. This year the company dressed Greta Gerwig, Demi Moore and Bella Hadid as well as hosting clients to view (and purchase) its high jewellery range.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.