China Risk Database
The China Risk database by 1792 Exchange is a unique collection of balance sheet and trade data of Fortune 100 companies that seeks to answer a couple of simple but prudent questions:
- “What financial risks do American corporations face amid the geopolitical tensions surrounding China; especially in the event of a flashpoint incident like war or international sanctions?”
- “Are American companies transparent enough in their disclosure of Chinese market exposure to properly inform and protect shareholders?”
This collection utilizes public access corporate data across three observable years, 2018, 2020, and 2022, and applies modeling where necessary to calculate the estimated loss each company would face as a result of American-led international sanctions against China. Combined, the value of the sanction estimates and the degree of disclosure, or lack thereof, for each company serves as a supplementary risk-assessment tool for shareholders and corporate leaders – especially in a climate where phrases like “A significant portion of our business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions” appear countless times in corporate risk assessments.
Total Estimated Sanctions (3-Year Average)
Total Revenue from China (3-Year Avg)
Assets in China (3-year Avg.)
Assets in China/Global Assets (% – 3-year Avg.)
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The Chinese Communist Party poses a significant national security risk to America. As Chinese spy balloons fly over our skies and their hackers wage war against our critical infrastructure, there is an intensifying risk to American corporations (and their shareholders) who have operations in China and who cooperate with the Communist government. Yet, American corporations remain financially dependent on China.
American corporations that do business in China take on significant financial and other risks but lack transparency to their shareholders and the public about how much money they are susceptible of losing and the exact nature of their relationships with the CCP.
In this current political environment, the imposition of sanctions and severe trade tariffs is undeniably relevant to the economics of geopolitical relationships like that of America and China. Extreme events like China’s potential invasion of Taiwan carry a high likelihood of economic retaliation from the U.S., as was the case in both instances of Russia’s invasions into Ukraine in 2014 and 2022. 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. 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? How do those conditions influence their U.S. policies and operations? How do companies reconcile potential moral incongruence when their public policy stance in China is at odds with their U.S.-based behavior?
To seek answers to these questions and to highlight the lack of corporate transparency, we have undertaken a research project on Fortune 100 companies. Our China Risk rankings give a snapshot of funds invested by Fortune 100 companies in China and estimate potential loss under imposed sanctions. This is based on balance sheet data, trade data, and sanctions calculation.
Unfortunately, many companies do not fully disclose data on their China operations, their relationship with the Chinese government, or the risks to shareholders. It is our hope that U.S. companies will 1) provide more transparency regarding their involvement in China; 2) address how they are safeguarding against national security risks; 3) address how they are safeguarding against shareholder investment risks should sanctions/tariffs result in loss of China-sourced revenues or the confiscation or loss of China-based assets.
* Company projected sanctions were determined by data gathered from the fiscal years 2018, 2020, and 2022. Learn more about the sanction calculations.
* Reports and materials are intended for educational use only and are based on publicly available information. This report does not constitute financial advice.