Kelly Evans: Why China is turning into a liability for American companies
Publishing timestamp: 2023-09-07 16:18:36
Summary
China's failed rebound post-Covid has revealed larger economic challenges, causing Chinese exposure to become a liability for many U.S. investors and businesses. Chinese officials have been banned from using Apple's iPhones, and there are concerns that the ban could be broadened to state-owned enterprises. Companies with high China exposure, such as Starbucks and tech companies, have been underperforming. The semiconductor industry, autos, and luxury retail brands are also vulnerable. The article questions whether companies should double down on their China exposure or not, considering the stagnant policy, rising debt burden, and demographic challenges in China. The risk of a Chinese invasion of Taiwan further adds to the uncertainty.
Sentiment: NEGATIVE
Tickers: AAPL, PJC, MU, SBUX, TSLA,
Keywords: united states, micron technology inc, starbucks corp, business news, breaking news: politics, business, piper jaffray companies, technology, china, politics, tesla inc, apple inc, xi jinping, washington d.c., beijing,