US-based companies that derive the highest proportion of their revenue in China are dominated by semiconductor makers and other electronics manufacturers, according to data compiled by Bloomberg. Monolithic Power Systems Inc., a San Jose, California-based component maker, tops the list with about 60 per cent of its sales coming from China. Apple Inc., Nvidia Corp. and Broadcom Inc. all generate more than 20 per cent of their sales in the country.
China has used non-tariff tactics in the past. South Korean and Japanese companies have been targeted during times of political tension with increased regulation, harsh new consumer safety rules and mass boycotts inspired by China’s state-run media. Apple only recently staged a comeback in China, one of the company’s most important markets. Tesla Inc. just announced plans to build a Chinese assembly plant but still needs to secure approvals and permits.
The government could also block mergers and acquisitions between US and Chinese companies. On Tuesday, The Wall Street Journal, citing unnamed Chinese officials, reported that China is considering delaying merger approvals. NXP Semiconductors NV, which is waiting for Chinese approval for its acquisition by Qualcomm Inc., fell as much as 4.7 per cent, the most since May 17. Qualcomm fell 1.8 per cent.