US Companies Post Earnings Boosted by Strong Chinese Market

U.S. companies are reporting robust financial results, significantly bolstered by their performance in the Chinese market. Notable players such as chipmaker AMD and automotive giant Tesla have demonstrated a strong linkage between their earnings and Chinese consumer demand.

A recent statement from a Chinese expert emphasizes that the stability and predictability of China's economic environment create a solid foundation for multinational corporations operating within the country. The expert urged the United States to work hand-in-hand with China to foster transparent and equitable business conditions.

AMD recently announced its financial results for the fourth quarter and the full year of 2025, attributing a boost of approximately 360 million dollars to the sales of the AMD Instinct MI308 chip series and related inventory adjustments. Notably, revenue from its MI308 sales to China alone totaled around 390 million dollars.

Looking forward, AMD has projected revenue for the first quarter of 2026 to reach 9.8 billion dollars, which includes an estimated 100 million dollars in sales linked to the MI308 in China, underscoring the significance of the Chinese market to its growth trajectory.

Yum China, which operates popular food chains like KFC and Pizza Hut, reported a 3 percent rise in same-store sales for the fourth quarter of 2025. This reflects a positive trend, as same-store transactions increased 4 percent year-on-year, marking their twelfth consecutive quarter of growth.

CEO Joey Wat mentioned that the strong performance in the fourth quarter capped off 2025 positively and that the company is on track to open over 20,000 locations in 2026, aiming for a target of more than 30,000 by 2030 via an equity-and-franchise hybrid model.

Tesla continues to stress the importance of the Chinese market, having delivered 851,000 electric vehicles from its Shanghai factory in 2025, which accounted for more than half of its global deliveries. The Model Y has particularly stood out as the best-selling SUV in China.

Tesla's leadership recognizes China's strategic role in its global supply chain, with Vice President Grace Tao Lin highlighting the country as not just a major growth market but also a hub for technological advancement and global strategies.

In a significant development, Apple achieved a record quarter driven by strong iPhone sales, buoyed by holiday shopping and a resurgence in China, with revenues reaching 144 billion dollars. This result exceeded their quarterly revenue forecast significantly.

A 23 percent year-on-year surge in smartphone revenue in the last three months of December can be attributed to the launches of the iPhone 17, while sales in the critical Chinese market soared by 38 percent year-on-year, resulting in a notable net income of 42 billion dollars for the company.

Despite the recent tensions in U.S.-China relations, including demands for increased scrutiny of Chinese enterprises, there remains a strong sentiment that cooperation is essential for prosperity. The American Chamber of Commerce in China reported intentions of systemic investment growth from U.S. companies fueled by China’s strategic importance.

The report’s findings indicate that 57 percent of American businesses are considering investment increases in China, with the majority echoing an apparent confidence in the market as they perceive improvements within China's business landscape. This reflects a firm overarching belief in mutual benefits stemming from U.S.-China economic ties.