‘Enough is enough’: New report warns top US companies at risk of hefty fines from possible China sanctions
A nonprofit organization with the goal of “preserving freedom and bringing ideological balance back to public corporations” has recently released a database outlining a list of Fortune 100 companies that are financially dependent on China. The organization, 1792 Exchange, has highlighted the potential financial risks these companies face if sanctions were ever put in place.
The report emphasizes the current political climate, which includes discussions of imposing severe trade tariffs on Chinese goods. In addition to tariffs, the possibility of American sanctions on companies doing business in China is also a concern. The report warns that if China were to invade Taiwan, similar sanctions to those imposed on Russia after the Ukraine invasion could be implemented. This could result in American businesses and investors losing significant amounts of money.
The database compiled by 1792 Exchange includes over 80 companies, such as Citigroup, Intel, Boeing, Disney, Nike, and John Deere. The report estimates the potential financial liability these companies could face from sanctions in China, based on balance sheet data, trade data, and sanctions calculations.
For example, Boeing earns nearly $5 billion annually from China and could face $1 billion in sanctions over a three-year period on average. Similarly, Intel earns $18 billion per year from China, representing 26.54% of its total annual revenue, and could potentially face $5 billion in penalties over a three-year period. Citigroup is listed as potentially facing $16 billion in sanctions annually from its almost $5 billion revenue in China.
Former Kentucky Attorney General Daniel Cameron, CEO of 1792 Exchange, expressed hope that the incoming Trump administration will implement policies to drive American independence from China. He emphasized the importance of bringing jobs back to the U.S. and encouraging businesses to operate within the country. Cameron believes that providing information on the potential risks of doing business in China will help CEOs, board leadership, and investors make informed decisions.
Overall, the companies listed in the report generate over $600 billion in revenue from China on average and could face sanctions totaling over $150 billion on average. Cameron stressed the need for transparency in corporate dealings with oppressive regimes, stating that American workers, consumers, and investors should be aware of the potential liabilities involved.
This report serves as a wake-up call for American corporations to reevaluate their relationships with China and consider the potential financial risks involved. By providing this valuable information, 1792 Exchange aims to empower stakeholders to make informed decisions that align with the values of preserving freedom and ensuring ideological balance in public corporations.
