ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

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.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more