New US President's policy: Apple and Intel will have a hard time in China

According to CNNMoney, a financial website under CNN, the Trump administration announced on Thursday that it would impose tariffs on $50 billion worth of goods imported from China each year and restrict China's investment in the U.S. technology industry, sparking concerns about a trade war between China and the United States and causing U.S. stocks to plummet.

The trade war with China is very bad news for some of the largest companies in the U.S. If China retaliates, life will become difficult for Apple, Boeing, Intel and other multinational companies in the Dow and S&P 500.

Apple earned $18 billion in revenue from the Chinese market last quarter, accounting for 20% of its total sales. Boeing's sales in the Chinese market last year reached nearly $12 billion, nearly 13% of its total revenue. Chip giant Intel, as well as its peers Texas Instruments, Nvidia, Micron Technology and Qualcomm, all have huge businesses in China, and Chinese companies are using their processors in large quantities.

China's rapidly growing middle class is also helping to drive growth for some of the largest companies in other industries in the U.S. Take Dow component Nike, for example, which sold $1.2 billion worth of sports shoes and apparel in China last quarter, accounting for 15% of its total revenue.

3M, another Dow component, got 10% of its sales from China last year. Its sales in China grew 16% last year, while its U.S. sales grew just 1.5%.

GM said earlier this year that its sales in China and those of its joint ventures topped 4 million vehicles in 2017, a record, thanks to strong demand for its Cadillac and Buick brands.

Starbucks has also made a big bet on the Chinese market, and it's paying off. The coffee giant now gets about 14% of its sales from China, and its business there is growing faster than in the U.S. and other developed markets.

Gambling giants Las Vegas Sands and Wynn Resorts could also be hurt by China’s retaliation. Both companies derive more than half of their revenue from Macau, a special administrative region of China, rather than Las Vegas.

Therefore, even if Trump's original intention is to try to protect the interests of American workers from being harmed by Chinese competitors, many American companies are bound to suffer huge losses from China's retaliatory measures.

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