Many U.S. companies depend on China as a major revenue source, impacting their strategies and growth outlook. In this blog, we’ll explore leading American companies generating at least 10% of their revenue from China, detailing the industries they work within and the roles they play.

‍

Tech Stocks With China Exposure

‍

The technology sector relies heavily on China for revenue. These companies count on China's market and manufacturing strength to support their growth.

‍

Intel Corporation (INTC) – In 2023, securities filings show, China accounted for 27% of Intel's revenue, while 6% of 2023 revenue was dependent on export-control authorizations.

‍

‍

Intel is a global leader in semiconductor manufacturing, known for designing and producing advanced microprocessors that power a vast array of devices, from laptops and desktops to data centers and Internet of Things (IoT) devices. 

‍

Intel’s heavy reliance on China is due to the country’s demand for electronics and its significant role in the global tech supply chain. As Intel faces increased competition, its substantial revenue from China remains critical to maintaining its market position.

‍

Revenue Growth (TTM): -6.17%

Earnings Growth (TTM): -5,702.36%

EBITDA (Y/Y): -3.50%

Net Profit Margin (Y/Y): -6,064.76%

Current Price: $24.01

‍

Apple Inc. (AAPL) – Revenue in the region fell slightly from a year earlier to $15 billion about 15.8%.

‍

‍

Apple, the world’s most valuable technology company, designs and sells consumer electronics, software, and services, with flagship products like the iPhone, iPad, and MacBook. 

‍

IPhones sold in China have a margin of 35%, higher than that of the overall company. The ban would vaporize around $280 million of profit. At 28 times forward earnings, Apple's current multiple, about $8 billion of value goes away. That’s 0.2% of Apple’s market capitalization. 

‍

China plays a dual role for Apple, both as a major manufacturing hub and as one of its largest consumer markets. The demand for Apple products among Chinese consumers supports a significant portion of the company's global revenue, making it essential for Apple’s sustained growth.

‍

Revenue Growth (TTM): 6.07%

Earnings Growth (TTM): -35.81%

Dividend Yield: 0.44%

EBITDA (Y/Y): 9.72%

Net Profit Margin (Y/Y): -39.49%

Current Price: $229

‍

‍Qualcomm Incorporated (QCOM) – In Qualcomm's most recent fiscal year for the year ending September 29, 2024, nearly $40 billion in revenue, the china market accounted for 46%.

‍

‍

Qualcomm is a dominant force in wireless telecommunications and semiconductor technology, specializing in mobile chipset solutions and 5G technology. The company’s high revenue from China highlights its integral role in the Chinese mobile market, where Qualcomm supplies essential components to smartphone manufacturers. 

‍

This dependence highlights China’s importance to Qualcomm’s growth, particularly as 5G adoption accelerates globally.

‍

Revenue Growth (TTM): 18.69%

Earnings Growth (TTM): 24.57%

Dividend Yield: 2.07%

EBITDA (TTM): 14.41%

Net Profit Margin (TTM): 65.12%

Current Price: $154

‍

‍Texas Instruments Inc. (TXN) – China accounts for 24% of Texas Instruments' revenue.

‍

‍

Texas Instruments, commonly known as TI, focuses on designing and manufacturing semiconductors, especially analog and embedded processing chips used in everything from automotive systems to industrial equipment. 

‍

The company's strong presence in China reflects the demand for its technology across various Chinese industries, positioning TI as a key player in the semiconductor supply chain that powers both local and global markets.

‍

Revenue Growth (TTM): -8.41%

Earnings Growth (TTM): -20.30%

Dividend Yield: 2.74%

EBITDA (TTM): -11.74%

Net Profit Margin  (TTM): -12.99%

Current Price: $198

‍

Western Digital Corporation (WDC) – Computer disk-drive maker Western Digital, makes more than 23% of its sales in China.

‍

‍

Western Digital is a leading provider of data storage solutions, including hard disk drives (HDDs) and solid-state drives (SSDs). The company generates over 23% of its sales in China, underscoring the importance of the Chinese market to its operations. Western Digital's products are integral to various industries in China, including technology, manufacturing, and consumer electronics.

‍

Revenue Growth (TTM): 48.91%

Earnings Growth (TTM): 171.97%

EBITDA (TTM): 338.27%

Net Profit Margin (TTM): 148.33%

Current Price: $63

‍

Fast Food Stocks With China Exposure

McDonald's Corporation (MCD) – McDonald's China accounts for about 4% of the chain's total revenue. McDonald's has more than 5,900 restaurants in China, making it the chain's second largest market by number of locations.

‍

‍

China is McDonald's second largest market by number of locations, with almost 6,000 restaurants. The company aims to reach 10,000 restaurants in China by 2028.

‍

McDonald's operates thousands of outlets across China, adapting its menu to local preferences while maintaining its global brand identity. The company's extensive presence in China highlights its importance to McDonald's international revenue.

‍

Revenue Growth (TTM): 2.72%

Earnings Growth (TTM): -2.68%

Dividend Yield: 2.43%

EBITDA (TTM): 2.17%

Net Profit Margin (TTM): -5.26%

Current Price: $290

‍

‍Starbucks Corporation (SBUX) – Starbucks' revenue in China was approximately $3 billion about 33% in fiscal year 2024, which was a 2% decrease from the previous year. China is Starbucks' second-largest market, after the United States, and is responsible for a significant portion of the company's revenue.

‍

‍

China is Starbucks' second-biggest market after the US, with nearly 20% of its total stores. In 2023, Starbucks had 6,804 company-operated stores in China, including 857 new stores and 72 closures. 

Starbucks has steadily expanded in China, capitalizing on the country’s burgeoning coffee culture. Known for its premium coffee and café experience, Starbucks adapts its menu to Chinese tastes and has become a popular destination for urban consumers. 

‍

China represents one of Starbucks’ fastest-growing regions, with ongoing expansion plans aimed at increasing its footprint across the country’s major cities.

‍

Revenue Growth (TTM): -3.20%

Earnings Growth (TTM): -25.42%

Dividend Yield: 2.46%

EBITDA (TTM): -19.21% 

Net Profit Margin (TTM): -22.98% 

Current Price: $98

‍

Food Processing Stocks With China Exposure

‍

‍The Coca-Cola Company (KO) – The Asia Pacific segment of The Coca-Cola Company, which includes Greater China and Mongolia, accounts for 10.3% of the company's revenue in Q1 2024

‍

‍

Coca-Cola, a global beverage leader, has a substantial presence in China, offering a wide range of products tailored to local tastes. The Chinese market contributes significantly to Coca-Cola's international sales, reflecting the brand's strong consumer base in the region.

‍

‍

Revenue Growth (TTM):  -0.83%

Earnings Growth (TTM):  -7.74%

Dividend Yield:  3.08%

EBITDA (TTM):  -1.93%

Net Profit Margin (TTM): -6.97%

Current Price:  $62

‍

Consumer Goods Stocks With China Exposure

‍

China’s vast consumer market is crucial for many companies in the consumer goods sector, which bring in considerable revenue from the region.

‍

Nike, Inc. (NKE) – In 2024, 15% of Nike's revenue came from Greater China. This is down from when John Donahoe took over, when sales from China represented 17% of the company's overall revenue.

‍

‍

Nike, an internationally recognized brand, specializes in athletic apparel, footwear, and sports equipment. China has become an essential growth market for Nike, with a rapidly growing middle class and rising demand for lifestyle and performance products. 

‍

Nike’s success in China is bolstered by its cultural influence and effective marketing campaigns, making it one of the region’s preferred athletic brands.

‍

Revenue Growth (TTM): -10.43%

Earnings Growth (TTM): -27.52%

Dividend Yield (TTM): 2.18%

EBITDA (TTM): -22.18%

Net Profit Margin (TTM): -19.09%

Current Price: $73

‍

Industrial Stocks With China Exposure

‍

Industrial companies make use of China’s manufacturing landscape and infrastructure, providing essential products for various industries.

‍

Caterpillar Inc. (CAT) – According to Bloomberg, China typically accounts for 5% to 10% of Caterpillar’s sales. 

Caterpillar, a leader in construction and mining equipment, relies on China’s vast construction and infrastructure projects to drive demand for its machinery. 

‍

Known for its heavy-duty equipment, Caterpillar’s products are essential in sectors like construction, mining, and energy. The company’s strong sales in China make it a vital player in supporting the country’s infrastructure development.

‍

‍

Revenue Growth (TTM): -4.19%

Earnings Growth (TTM): -11.81%

Dividend Yield: 1.48%

EBITDA (TTM): -6.34%

Net Profit Margin (TTM): -7.94%

Current Price: $380

‍

Chemical Stocks With High China Exposure

‍

Chemical companies benefit from China’s demand for materials, which are used across electronics, automotive, and construction.

‍

Albemarle Corporation (ALB) – China accounts for 27.1% of Albemarle Corporation's revenue. Albemarle is a specialty chemicals company that operates globally, and a large portion of its business is outside the United States.

‍

Albemarle Corporation is one of the US companies with the highest exposure to China. With Korea generating 28.9%, China 27.1% and Japan 13.5% (in comparison the US generates only 9.7%) of the company's revenue, Albemarle is heavily dependent on demand for energy storage in East Asia. The company has a strong presence in China, operating in seven major municipalities and provinces. Albemarle's operations in China include lithium, bromine, and specialty chemicals. 

‍

Albemarle is the world's top lithium producer, but Chinese producers have grown their share to 63%. Albemarle has faced the risk of losing market share to China due to falling prices for lithium. However, Albemarle's stock has surged as lithium production cuts in China have boosted the market outlook. 

‍

Revenue Growth (TTM): -41.37%

Earnings Growth (TTM): -453.35%

Dividend Yield (TTM): 1.51%

EBITDA (TTM): -412.27%

Net Profit Margin (TTM): -702.83%

Current Price: $107

‍

Semiconductors 

‍

China’s vast electronics industry provides substantial revenue for semiconductor companies that supply the core components for tech manufacturing.

‍

Applied Materials, Inc. (AMAT) – The latest revenue of Applied Materials (AMAT) generated from China during the quarter ending July 2024 was $2.15 billion, accounting for 31.8% of the company's total revenue. This figure represented a negative surprise of -18.34%, as analysts had expected $2.64 billion from the region. 

‍

‍
Applied Materials is vulnerable to geopolitical risks because of its reliance on China for a significant portion of its revenues. The U.S. has enacted restrictions on sales of semiconductor equipment tools to China, and the company is under criminal investigation for potentially evading these restrictions.

‍

In the second quarter of 2024, 43% of Applied Materials' total revenue came from China. In the fourth quarter, revenue from China declined to 30%, down from 32% in the previous quarter and 40% before that.

‍

Revenue Growth (TTM): 4.79%

Earnings Growth (TTM): -13.62%

Dividend Yield: 0.93%

EBITDA (TTM): 2.76%

Net Profit Margin (TTM): -17.58%

Current Price: $172

‍

Electronic Equipment Stocks With Exposure to China

‍

Key companies in electronic equipment serve China’s demand for advanced materials in tech and other sectors.

‍

Corning Incorporated (GLW) – Corning Incorporated, a leading manufacturer of specialty glass and ceramics, has a significant presence in China, with China accounting for approximately 33% of its revenue.

‍

Corning is a materials science company known for its specialized glass, ceramics, and optical products, which are widely used in industries such as consumer electronics, telecommunications, and life sciences. 

‍

In China, Corning’s advanced glass is crucial for smartphone screens, display panels, and other high-tech applications, securing its position as a top supplier in the electronics industry.

‍

Revenue Growth (TTM): 6.87%

Earnings Growth (TTM): -171.34%

Dividend Yield: 2.37%

EBITDA (TTM): 20.00%

Net Profit Margin (TTM): -166.73%

Current Price: $47

‍

These companies highlight the many industries that rely on China’s large and growing market. Each plays a key role in its sector, and their operations in China remain vital for their revenue and growth in global markets. The connections these businesses have in China are crucial as they plan for future expansion and meet market demands.

‍