China's Offshore Equity Giants Barely Sell Anything to the U.S.

Trade Tensions May Spur China Reforms Says Deloitte

A closer look at some of China’s biggest companies may help explain why investors have largely taken Donald Trump’s tariff threats in their stride.

Members of the MSCI China Index depend on the U.S. for just 5 percent of their sales, Citigroup Inc. strategists led by Robert Buckland wrote in a March 15 note. By comparison, North America accounts for about 22 percent of revenue for British firms, 17 percent for those based in the euro area and 15 percent for Japanese companies, according to the note.

These Are the Chinese Industries Selling in the U.S.

MSCI China's U.S. sales as a proportion of total revenue

Source: Bloomberg, Citigroup

Note: Sales exposure for the entire index is 5%.

The U.S. is still an important market, particularly for electronics and computer chips. Yet despite reports Trump is preparing to slap tariffs on Chinese tech products, the MSCI China IT sub-gauge advanced 3.3 percent this week and the broader measure rose 2.3 percent.

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