A Few Ways To China-Proof Your Portfolio: Seema Mody

Investors concerned over worsening U.S.-China relationship should consider "China-proofing" their portfolio. CNBC's Seema Mody offered some helpful tips.

According to Mody, many American-based companies have flourished over the years while the relationship between the two governments was stable. Accordingly, any setbacks in the relationship between the two countries could hurt many American companies. While some of the names on Mody's list should be apparent to investors, some could come as a surprise.

For instance, Wal-Mart Stores, Inc. WMT derived more than $50 billion in revenue from China over the past year. Moreover, a proposed tariff by President-elect Donald Trump could hurt Wal-Mart as it will drive up prices of Chinese made goods in its American stores.

Technology Sector

Mody continued that the technology sector is the most exposed to China as around half of all imports from China to the U.S. are electronics.

Marvell Technology Group Ltd. MRVL, Texas Instruments Incorporated TXN, Western Digital Corp WDC, among several others, have all reported a significant portion of their revenue from China.

Bottom Line

Mody did acknowledge it may be too early for investors to start rushing today to "China-proof" their portfolio as it has yet to be seen if harsh words from both sides will turn into action.