How many American companies are based in China?
How many US companies operate in China? It is estimated that there are over 50,000 US companies that have operations in China.
Household-name consumer brands like Starbucks, Nike and Under Armour have a large customer base in China. Tech and automobile giants like Intel, Apple (AAPL), Tesla (TSLA), General Motors and Ford not only rely on Chinese consumers, but also have huge manufacturing networks in the country.
Honestly, the fact that China has ~77 million companies didn't surprise us. The figures that really caught our attention were those about the rising number of companies in China, which is growing at a rate of 11.8% per year.
- Calrad Electric.
- Campbell 's Soup.
- Canon Electronics.
- Carole Cable.
- Casio Instrument.
- Caterpillar, Inc.
- CBC America.
- CCTV Outlet.
- #1 PetroChina Co. Ltd. ( PCCYF)
- #2 JD.com Inc. ( JD)
- #3 Ping An Insurance (Group) Co. of China Ltd. ( PNGAY)
- #4 China Construction Bank Corp. ( CICHY)
- #5 Tencent Holdings Ltd. ( TCEHY)
- #6 China Merchants Bank Co., Ltd. ( CIHKY)
- #7 BYD Co. Ltd. ( BYDDY)
- #8 Zijin Mining Group Co., Ltd. ( ZIJMF)
Companies like Apple (AAPL), Intel (INTC), Ford (F) and Tesla (TSLA) have large manufacturing ties to the country. Others, like Starbucks (SBUX) and Nike (NKE), rely on Chinese consumers. Earlier this year, Bank of America (BAC) compiled a list of the S&P 500 companies with the highest exposure to China.
Company | % of revenues from China |
---|---|
Intel | 27.2% 27.2% 27.2% |
Amphenol | 25.9% 25.9% 25.9% |
Skyworks Solutions | 25.4% 25.4% 25.4% |
Western Digital | 24.1% 24.1% 24.1% |
- AMC. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. ...
- General Motors. ...
- Spotify. ...
- Snapchat. ...
- Hilton Hotels. ...
- General Electric Appliance Division. ...
- 49 Comments.
In 2022, Fortune's Global 500 list of the world's largest corporations included 145 Chinese companies in total.
In 2022, the total value of the U.S. trade in goods with China amounted to around 690.6 billion U.S. dollars composed of a 153.8 billion U.S. dollar export value and a 536.8 billion U.S. dollar import value.
Why do so many US companies manufacture in China?
Companies import goods from China in part because their lower cost allows higher retail markups. That means more of what consumers spend goes to those companies and, indirectly, their workers. Imported goods and services constitute a smaller share of the U.S. consumer market than you might think.
Today, Walmart operates hundreds of stores and clubs and multiple distribution centers in more than 100 cities across China.
The supply chain and infrastructure advantage has become one of the most important drivers for foreign companies relocate to China, when global supply chains were seriously disrupted due to the aggressive implementation of infection control measures.
From General Motors to Apple, many major American corporations have established a strong foothold in the Chinese market and are reaping substantial profits from their operations there. In addition, US-owned subsidiaries based in China number nearly 2,000 while total investments by US firms amount to $14 billion.
Indeed, during the past four decades, Chinese companies and investors have bought up land in the U.S. as well as purchased major food companies like Smithfield Foods, the United States' largest pork processor.
Fact: TikTok's parent company ByteDance Ltd. was founded by Chinese entrepreneurs, but today, roughly sixty percent of the company is beneficially owned by global institutional investors such as Carlyle Group, General Atlantic, and Susquehanna International Group.
In early November, after Foxconn imposed Covid restrictions at the factory, Apple said the plant was operating at a “significantly reduced capacity.” The world's biggest iPhone factory, located in China and run by Foxconn, faced disruptions in 2022. That is likely to filter through to Apple's December quarter results.
- Google. Google CEO Sundar Pichai. ...
- Snapchat. Snapchat cofounder & CEO Evan Spiegel. ...
- Tumblr. Tumblr CEO Jeff D'Onofrio. ...
- Slack. ...
- Discord. ...
- Quora. ...
- Wikipedia. ...
- Flickr.
Chinese investors and firms own a majority of almost 2,400 American companies employing 114,000 people, about the same number as the combined U.S. staffs of Google, Facebook and Tesla, according to data from MacroPolo.
Since then, much of the world's manufacturing base has migrated to China, attracted by low-cost labour and favourable policies from the Chinese government. These policies include massive investments in infrastructure and trade capacity.
What percentage of US goods are made in China?
China has the third largest share in U.S.–World Trade following Mexico and Canada. In 2021, 8.6% of total U.S. exports of $1.8 trillion to the World were exported to China and 17.9% of total U.S. Imports of $2.8 trillion were imported from China.
- AMC. Popular cinema company AMC, short for American Multi-Cinema, has been around for over a century and is headquartered in Leawood, KS. ...
- General Motors. ...
- Spotify. ...
- Snapchat. ...
- Hilton Hotels. ...
- General Electric Appliance Division. ...
- 49 Comments.
Between 2011 and 2012, Amazon's market share hovered at approximately 15%, but it later plunged to less than 1% by 2019, according to iResearch. Amazon officially closed its China online marketplace in July 2019.
Foreign investors in China have the option of setting up a Wholly-Foreign-Owned-Enterprise. This is the most common business form chosen by non-nationals because it allows for full ownership.
U.S. foreign direct investment (FDI) in China (stock) was $123.9 billion in 2020, a 9.4 percent increase from 2019. U.S. direct investment in China is led by manufacturing, wholesale trade, and finance and insurance.