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Threat assessment: ranking risk among US companies dealing with China

Ford Motor, Carrier and Tesla are top three businesses most vulnerable in analysis by market research firm

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Tesla’s Shanghai Gigafactory. A new report ranks the company among the top US firms facing risk exposure in China. Photo: Getty Images
Khushboo Razdanin Washington

Of the major US corporations reliant on their business in China, which are most at risk in the geopolitical competition between the world’s two largest economies?

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On Monday, the market research firm Strategy Risks identified what it determined to be the most vulnerable among the top 250 publicly listed US companies, in terms of exposure to China. Ford Motor, consumer appliance giant Carrier, the electric vehicle manufacturer Tesla, tech titan Apple and global drink brand Coca-Cola topped the list.

The firm analysed a range of public information sources – company communications like annual and sales reports; media coverage; and government data – to assess exposure on a scale from 0 to 100.

The evaluation included categories like supply chain dynamics, connections with the Chinese government and Communist Party officials and industry regulations in China.

With a score of 69, Ford topped the list, followed closely by Apple and Carrier, each charting a score of 65. Tesla and Coca-Cola also scored 63, while other notable companies, including Honeywell and Walt Disney, are just below at around 60.

Chart: Strategy Risks
Chart: Strategy Risks
Concerns about exposure to China have intensified after China’s Commerce Ministry announced an investigation last week into fashion retailer PVH Corp – the owner of Calvin Klein and Tommy Hilfiger – for refusing to source cotton from the Xinjiang region.
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