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Deep Dive: Apple, Nike and 18 other U.S. companies have $158 billion at stake in China trade war

U.S. investors may well be gripped through fear of a industry struggle with China smartly into the summer.

That could stay a lid on inventory market positive aspects, or at least on firms with the most at stake on this planet’s maximum populous nation. China, in spite of everything, has the second-largest financial system and is the No. 2 industry partner with the U.S. after the European Union.

President Trump seems to be making just right on his marketing campaign promise to forge a greater industry maintain China. He’s following his standard trend through first staking out a harsh position — saying tariffs on metal and aluminum imports March 1 — and then permitting exemptions for the EU, Canada, Mexico and other countries. There are stories of negotiations in Washington between Treasury Secretary Steven Mnuchin, U.S. industry representative Robert Lighthizer and Liu He, China President Xi Jinping’s best economic adviser.

A listing of deliberate tariffs in opposition to China has now not been announced, and Lighthizer has stated there might be a 60-day remark duration earlier than they're imposed. Meanwhile, negotiations will continue. So you'll be able to expect more uncertainty.

But this is about more than tariffs. Keep in mind that the government of China loves to play favorites — there’s a explanation why Alibaba Group Holding Inc. BABA, +2.59% Tencent Holdings Ltd. 0700, -Zero.63% Baidu Inc. BIDU, +Zero.04%  and Ctrip.com International Ltd. CTRP, +Zero.97%  — have little competition from U.S. firms.

Google (now Alphabet Inc. GOOG, +2.71% GOOGL, +three.18% ) close its seek engine in China in 2010. Amazon.com Inc. AMZN, +1.11%  has a web page in China and gives services and products there via affiliates but stories all non-U.S. sales in combination in its world phase, which accounted for $54.three billion, or 31%, of total sales in 2017.

Tariffs don't seem to be the only method China could retaliate in opposition to U.S. firms if negotiations smash down. China’s government could impose restrictions on industry or laws that might make some American firms follow Google’s path out of that vast market.

Companies with the most on the line

Starting withe the S&P 500 SPX, +1.38% monetary researcher FactSet put in combination a different set of data to show which U.S. firms have the perfect stage of reported sales to China. A big problem with the data is that businesses take different approaches to breaking down sales through geography. As we now have observed, Amazon lumps all non-U.S. sales in combination. Then once more, maybe if its business in China were to reach a certain measurement, it could want to supply more granular data.

Among the S&P 500, FactSet recognized 62 U.S. firms that reported sales within the following relevant geographic areas:

  • China
  • Greater China
  • China and Taiwan
  • China, together with Hong Kong
  • Asia-Pacific, Japan, China

So we are restricted to firms that escape the China sales data and don’t have perfectly matching classes for “China.” But the size of the rustic’s financial system make any figures within the above classes essential to investors.

Here are two lists. The first is the 20 U.S. firms a few of the S&P 500 with the perfect stage of sales, in U.S. greenbacks, in China right through the most just lately reported complete fiscal 12 months, totaling $158.4 billion:

Company Ticker ‘China’ sales ($mil) Total revenue - most recent reported fiscal 12 months ($mil) Share of sales in ‘China’
Apple Inc. AAPL, +Zero.78% $44,764 $228,572 19.6%
Intel Corp. INTC, +five.00% $14,796 $62,761 23.6%
Qualcomm Inc. QCOM, +1.30% $14,579 $22,291 65.4%
Boeing Co. BA, +2.46% $11,911 $93,392 12.8%
Micron Technology Inc. MU, +1.26% $10,388 $20,322 51.1%
Broadcom Ltd. AVGO, -Zero.44% $9,466 $17,636 53.7%
Cisco Systems Inc. CSCO, +2.95% $7,650 $48,005 15.9%
Texas Instruments Inc. TXN, +1.94% $6,600 $14,961 44.1%
Procter & Gamble Co. PG, +Zero.56% $five,205 $65,058 8.Zero%
Starbucks Corp. SBUX, -Zero.02% $4,512 $22,384 20.2%
Western Digital Corp. WDC, +1.62% $4,271 $19,Zero93 22.4%
Nike Inc. Class B NKE, +1.53% $4,237 $34,254 12.4%
3M Co. MMM, +1.38% $three,255 $31,657 10.three%
Skyworks Solutions Inc. SWKS, +1.41% $three,Zero18 $three,651 82.7%
Applied Materials Inc. AMAT, +2.87% $2,746 $14,537 18.9%
TE Connectivity Ltd. TEL, +three.70% $2,414 $13,113 18.4%
Corning Inc GLW, +1.94% $2,230 $10,115 22.Zero%
Abbott Laboratories ABT, +1.16% $2,146 $27,390 7.8%
Cummins Inc. CMI, +1.52% $2,137 $20,428 10.five%
Amphenol Corp. Class A APH, +1.51% $2,067 $7,011 29.five%
Source: FactSet

As you'll be able to see, in a potential industry struggle with China there can be nowhere to hide even supposing you were invested in a extensive index fund. Apple Inc. AAPL, +Zero.78%  on my own has a market worth of just about $845 billion, or three.8% of the entire worth of the S&P 500.

Here’s a in part overlapping list of the 20 U.S. firms within the S&P 500 with the perfect percentage of sales in China:

Company Ticker ‘China’ sales ($mil) Total revenue - most recent reported fiscal 12 months ($mil) Share of sales to ‘China’
Skyworks Solutions Inc. SWKS, +1.41% $three,Zero18 $three,651 82.7%
Qualcomm Inc. QCOM, +1.30% $14,579 $22,291 65.4%
Qorvo Inc. QRVO, +2.79% $1,880 $three,033 62.Zero%
Broadcom Ltd. AVGO, -Zero.44% $9,466 $17,636 53.7%
Micron Technology Inc. MU, +1.26% $10,388 $20,322 51.1%
Texas Instruments Inc. TXN, +1.94% $6,600 $14,961 44.1%
IPG Photonics Corp. IPGP, +three.37% $621 $1,409 44.1%
Advanced Micro Devices Inc. AMD, +2.45% $1,747 $five,329 32.8%
Microchip Technology Inc. MCHP, +Zero.22% $1,090 $three,408 32.Zero%
Amphenol Corp. Class A APH, +1.51% $2,067 $7,011 29.five%
Xilinx Inc. XLNX, +1.25% $597 $2,349 25.4%
Intel Corp. INTC, +five.00% $14,796 $62,761 23.6%
Western Digital Corp. WDC, +1.62% $4,271 $19,Zero93 22.4%
Corning Inc GLW, +1.94% $2,230 $10,115 22.Zero%
Starbucks Corp. SBUX, -Zero.02% $4,512 $22,384 20.2%
Agilent Technologies Inc. A, +Zero.75% $900 $4,472 20.1%
Avery Dennison Corp. AVY, +2.11% $1,300 $6,614 19.7%
Apple Inc. AAPL, +Zero.78% $44,764 $228,572 19.6%
Nvidia Corp. NVDA, +4.63% $1,896 $9,714 19.five%
Applied Materials Inc. AMAT, +2.87% $2,746 $14,537 18.9%
Source: FactSet

There are many semiconductor manufacturers on this second list, owing to the manufacturing of smartphones and computer systems in China.

Read more on semiconductor firms and their stocks:

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