Global companies will feel that heat. U.S. companies generate $544 billion in annual revenue in China—more than triple what the U.S. exports to China, according Arthur Kroeber of Gavekal Research. What’s more, with a population of 1.4 billion, China is a major source of growth. As the relationship between China and the U.S. grows more complicated, corporate costs could rise and growth targets might need trimming. Investors might also need to reassess the multiples they are paying for companies counting on expansion in China.
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