‘Enough is enough’: New report warns top US companies at risk of hefty fines from possible China sanctions
2025-01-14
Category: political

A nonprofit organization with the goal of "preserving freedom and bringing ideological balance back to public corporations" released a database outlining a list of Fortune 100 companies that are financially dependent on China and could lose large sums of money if sanctions were ever put in place. "In this current political climate, there are discussions of the imposition of severe trade tariffs on Chinese goods," 1792 Exchange explained in a&nbsp;new report released this week.&nbsp;"In addition to tariffs, American sanctions may be placed on American companies doing business in China. For example, if China invades Taiwan, it may result in sanctions like the ones imposed on Russia after the Ukraine invasion. If imposed, our assessment is that American businesses, and investors, could lose a substantial amount of funds. "This raises a number of serious questions that beg for clear answers.&nbsp;What would the financial impact to these companies be if the U.S. imposes sanctions or tariffs that put both assets and revenue streams at risk? What compromises are being exacted by the CCP in order for these companies to invest in China and do business there?&nbsp;How do those conditions influence their U.S. policies and operations?&nbsp;How do companies reconcile potential moral incongruence when their public policy stance in China is at odds with their U.S.-based behavior?" The report highlights over 80 companies that currently operate in China and estimates the amount of sanctions they could potentially face in the future, which was calculated "based on balance sheet data, trade data, and sanctions calculation." ONE STATE’S NATURAL RESOURCES CAN FINALLY PUT AN END TO AMERICA’S RELIANCE ON CHINA  Dozens of companies are included in the report, including Citigroup, Intel, Boeing, Disney, Nike and John Deere. While many of the companies listed have not fully disclosed the full scope of their China business dealings, some have and in those cases, 1792 Exchange estimated the potential financial liability those companies face from potential sanctions in China during the upcoming Trump administration.&nbsp; OPENAI REVEALS AI POLICY PROPOSALS TO BEST CHINA, PROTECT KIDS: ‘THIS IS A RACE AMERICA CAN AND MUST WIN’  In Boeing’s case, the&nbsp;report states that the company earns just under $5 billion annually from China and could face $1 billion in sanctions over a three-year period on average. Intel, according to the report, earns $18 billion per year from China, which represents 26.54% of its total annual revenue. Sanctions in China could mean $5 billion in penalties for Intel over a three-year period on average, the report concludes. Citigroup is listed in the database as potentially facing $16 billion per year in sanctions on average from its almost $5 billion per year revenue in China.&nbsp; CLICK HERE TO GET THE FOX NEWS APP  Fox News Digital spoke to Daniel Cameron, former Kentucky Republican attorney general and 1792 Exchange CEO, about the report, and he said he hopes people take away from the data the "staggering amount of money our Fortune 100 companies could lose in the event of sanctions imposed on China." Cameron told Fox News Digital he is optimistic that the incoming Trump administration will implement policies that drive American independence from China.&nbsp; "My hope is that we're able to bring a lot of jobs back to this country and more businesses and then make a judgment, a decision to park their operations within the United States," Cameron said. "That's good for the American worker and I think particularly through some of the information that we've been able to share as it relates to this China risk database, I'm hopeful that again, yes, optimistic that President Trump is going to do right by the United States. He's going to do right by the American worker and consumer and I'm hopeful that the information that we've provided will help the administration, but it will also help CEOs and board leadership and investors be wise about their relationship with China." Overall, the companies listed in the report generate over $600 billion in revenue from China on average and would face sanctions totaling over $150 billion on average.&nbsp; "Far too many of America’s largest corporations are shielding from the public their involvement with an oppressive communist regime. This failure to provide any corporate transparency is a glaring threat to America’s future," Cameron said about the data in the report. "Enough is enough. American workers, consumers, and investors should be aware of where these major liabilities lie."