Top US companies face potential fines due to China sanctions, according to a new report.
Daniel Cameron, former GOP Kentucky AG, leads the 1792 Exchange.
A nonprofit group that aims to safeguard liberty and restore ideological equilibrium in public institutions made public a database detailing the Fortune 100 companies that heavily rely on China financially and could suffer significant losses if any sanctions were imposed.
The report released this week by 1792 Exchange stated that discussions are taking place regarding the imposition of severe trade tariffs on Chinese goods in the current political climate. Additionally, American sanctions may be placed on American companies operating in China. For instance, if China invades Taiwan, it may result in sanctions similar to those imposed on Russia following the Ukraine invasion. If implemented, our assessment is that American businesses and investors could experience significant financial losses.
"The imposition of sanctions or tariffs by the U.S. on Chinese companies poses serious questions that require clear answers. What are the financial consequences for these companies if their assets and revenue streams are put at risk? What concessions are being made by the CCP for these companies to invest in China and conduct business there? How do these conditions affect their U.S. policies and operations? How do companies resolve the moral inconsistency when their public stance on China conflicts with their U.S.-based behavior?"
The report estimates the potential sanctions that over 80 companies operating in China could face in the future, based on their balance sheet data, trade data, and sanctions calculation.
The report comprises numerous corporations, such as Citigroup, Intel, Boeing, Disney, Nike, and John Deere.
Some companies have disclosed their China business dealings, and 1792 Exchange estimated the potential financial liability they may face from sanctions in China under the upcoming Trump administration.
On average, Boeing could face $1 billion in sanctions over a three-year period, according to a report stating that the company earns just under $5 billion annually from China.
The report states that Intel earns $18 billion annually from China, which accounts for 26.54% of its total revenue. If sanctions are imposed on China, Intel could face an average of $5 billion in penalties over a three-year period, according to the report.
The database indicates that Citigroup may face an average of $16 billion in sanctions annually due to its $5 billion annual revenue in China.
Daniel Cameron, former Kentucky Republican attorney general and 1792 Exchange CEO, discussed the report with Planet Chronicle Digital and stated that he hopes people understand the "staggering amount of money our Fortune 100 companies could lose in the event of sanctions imposed on China."
According to a report by Planet Chronicle Digital, Cameron expressed his optimism that the new Trump administration will introduce policies that will reduce the US's dependence on China.
"I hope that President Trump will bring jobs back to the country and attract more businesses, which will ultimately lead to a decision to park their operations within the United States. This is beneficial for American workers and consumers, and I am optimistic that the information we have shared about the China risk database will help the administration and business leaders make informed decisions about their relationship with China."
On average, the companies listed in the report generate over $600 billion in revenue from China and would face sanctions totaling over $150 billion.
"The report revealed that many large American corporations are hiding their ties to an oppressive communist regime. This lack of transparency is a significant threat to America's future, and it is time for American workers, consumers, and investors to be informed about these major risks."
politics
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