An Interesting Window Into China's Rise In Global Business

Discussion in 'China' started by huaxia rox, Apr 22, 2012.

  1. huaxia rox

    huaxia rox Senior Member Senior Member

    Apr 4, 2011
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    An Interesting Window Into China's Rise In Global Business - Forbes

    Forbes this week published one of my favorite lists every year: the Forbes Global 2000 list, compiled by my colleague Scott DeCarlo in New York.

    One reason I like this list is because it’s so in-depth. An annual ranking of 2,000 companies published for several years allows for the discovery of many more interesting global trends than a compilation of only, say, 500 members. (Sorry, Fortune.)

    Because of that depth and the time period it covers, the Forbes Global 2000 list is a particularly good window into the rise of China. As Scott notes in his regional overview of this year’s list, the number of members from China has increased from 44 in 2007 to 136 in 2012. In other words, China accounts for 6.8% of the list, compared with 2.2% only five years ago. From that alone, you can see how Chinese businesses have outperformed much of the world through the global economic crisis.

    There are many other insights. Because of that 2,000-company-deep analysis, you can also track the rise of the private sector and entrepreneurs in a country that not long ago was overwhelming made up of government-owned businesses. At least a fifth of the China list members this year, including Internet giants Baidu and Netease, as well as Caterpillar equipment rival Sany Heavy Industry, are private sector companies. And although state-controlled companies top the China ranks and continue to play big roles in key industries – such as PetroChina in the oil business, the list provides a reference for illustrating a decline in government stakes in many of the country’s most successful companies.

    It’s also worth noting that that 136 figure for China this year doesn’t fully reflect the influence of the country on the overall list. Due to methodology constraints, some Chinese-government-controlled companies such as China Mobile are listed under Hong Kong. Combined, China and Hong Kong account for 184 companies, or 9.2% of this year’s list. If you go a step further and add in Taiwan, whose economy is – as the Chinese expression goes — “as close as lips and teeth” with mainland China’s, you get a “Greater China” total of 226 companies, or 11.3% of the 2012 Forbes Global 2000 list. That number, to me, gives you a much clearer picture of the “Chinese” juggernaut that is closing in by the day the United States and Europe in overall economic power in the world today.

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