HH Ten US Companies With Highest Revenue Exposure To China

Relations between the United States and China have worsened over the last few years. The trade tariffs, the novel coronavirus, the Hong Kong security law, the closure of consulates, and China’s expansionist mindset have all contributed to the downturn in the US-China relations. The growing anti-US sentiment in the world’s most populous country could hurt American businesses that have a strong presence in China. Here we take a look at the top 10 US companies with the highest revenue exposure to China.

American businesses rely heavily on China

Contrary to popular perception, Apple generates only about 17% of its revenue from China. Boeing, Caterpillar, General Motors, Starbucks, Nike, and Ford are some other US companies with a strong presence in the country. But none of them get more than 25% of their revenue from China.

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It's the US chipmakers that have the highest revenue exposure to the country. The list below is based on data from Tijori Finance and includes only the S&P 500 constituents. Tijori has determined the revenue exposure to China based on Customer Ship-to Location. Some smaller companies could have a disproportionately large revenue from China.

It is challenging to determine a company's exposure to the Middle Kingdom even if you look into the company filings and other company-reported data. That's because every company takes a different approach to report its international revenue and profit numbers. Many don't break out the China sales data. For example, Amazon lumps non-US sales together.

Some companies report sales data for China, other reports for Greater China, yet others present sales for China including Hong Kong. Then there are some companies that lump China and Taiwan sales together.

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Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

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