If you follow the news, you know that tensions between the United States and China are high and that the commercial relationship between the two biggest trading nations on the planet has been fraying.
Yet, amid the ominous headlines about a possible “decoupling” of the United States and China, you may be surprised by how strong and binding their financial ties remain.
The two economies are closely linked, and, as an old China hand, I think that’s a good thing.
Consider that while the publicly traded U.S. companies in the S&P 500 obtain almost 60 percent of their revenue domestically, the biggest source of their foreign sales is China.
The second-largest foreign source was Japan, with 2.6 percent; followed by Germany and Britain, with 2.2 percent each; and then Taiwan, with 1.8 percent.
Locations:
United States, China, Japan, Germany, Britain, Taiwan