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Itochu's big bet on China's Citic puts profit target in jeopardy

Japanese trading house sidesteps resource crash but still feels pandemic's toll

Itochu generates 80% of its profit from outside the resources business, more than most other Japanese trading houses.   © Reuters

TOKYO -- While other Japanese trading houses grapple with plunging resource prices, Itochu faces a different sort of risk through its business ties to China, whose economy has just begun to recover from the coronavirus pandemic.

Itochu in 2015 acquired a roughly 10% interest in Citic, China's largest state-owned conglomerate, which operates in various fields including finance, information technology and infrastructure.

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