An economic slowdown in China could ripple through the U.S. tech sector, which derives a large percentage of its revenue from activity in the region.
The property sector is also hobbled. This month, China’s largest private real estate developer, Country Garden, missed some bond payments and said it expected to post a record loss for the first six months of the year. Eight of the 10 companies with the largest share of revenue from China are chip makers or related to the chip industry, with Qualcomm at the top.
READ MORE ON CHINA Texas Instruments is third on the list, with 48.2% of revenue coming from China, all of it from the mainland as of Dec. 31. Its stock is down 7.9% in August. Texas Instruments told Barron’s in an email that about 25% of its revenue came from China-headquartered customers in 2022. “Many of our customers sell their products globally. Therefore, changes in demand from any region can affect us,” the company said.