SAP CEO Bill McDermott remains very optimistic about doing business in China. He says that SAP has a fundamental belief in China and continues to invest in China. “We’re not having challenges in China,” says McDermott. “We’re doubling down in China. China has been very kind to SAP and we have been very kind to China. It’s a win-win.”
Bill McDermott, CEO of SAP, discussed their continued belief in China in an interview on CNBC International:
We’re Doubling Down in China
We have really a fundamental belief in China. China is the jewel in the crown for SAP. We actually defined it as a second home many years ago. We continue to invest in China and China continues to invest in SAP. It’s the fastest growing market we have in the world. As you know I spend quite a bit of time in China. When I was there last year we formed a very strategic partnership with several firms including the Alibaba Group, partnering with Jack Ma and Daniel Zhang and the Alicloud.
When you think about the infrastructure as a service of Alicloud with SAP’s business software market leadership you have a business model that generates incredible growth for both companies, but also serves customers beautifully. We’re not having challenges in China. We’re doubling down in China. China has been very kind to SAP and we have been very kind to China. It’s a win-win.
I Think a Trade Deal is on the Horizon
I remain optimistic on that front. Optimism is probably the only free stimulus any of us can get our hands on these days. Look, it’s an uncertain world. If there’s not the US-China tariff and global uncertainty on trade, it’ll be Brexit. If it’s not Brexit, it’ll be something else. What we do is we manage a portfolio of businesses geographically and through our industry domain expertise. When you go to market in 193 countries you’re going to have dislocations.
In an uncertain world, steady leadership always prevails. Our numbers said that in 2018 and they’ll say that again in 2019 and beyond. I do hope that it comes to terms in a positive way. I actually believe it will because business sense tends to prevail and you’ve got the number one and two economy in the world that both could benefit greatly from a deal. So I think a deal is on the horizon. I’m actually very optimistic.