Fortune Global 500: China #1, USA #2

rockdog

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https://www.wautom.com/2019/07/fortune-global-500-china-1-usa-2/

American companies account for 121 of the world’s largest corporations by revenue. Chinese companies account for 129 (including 10 Taiwanese companies). For the first time since the debut of the Global 500 in 1990, and arguably for the first time since World War II, a nation other than the U.S. is at the top of the ranks of global big business.

China has now reached parity with the U.S. on the 2019 Fortune Global 500—a signifier of the profound rivalries reshaping business today.

As the Chinese Century nears its third decade, Fortune’s Global 500 shows how profoundly the world’s balance of power is shifting. American companies account for 121 of the world’s largest corporations by revenue. Chinese companies account for 129 (including 10 Taiwanese companies). For the first time since the debut of the Global 500 in 1990, and arguably for the first time since World War II, a nation other than the U.S. is at the top of the ranks of global big business.

That shift is transforming not just the business world but the whole world. As China seeks to succeed the U.S. as the preeminent superpower, business is playing an even larger role in international affairs than usual. Nations have always competed economically, but the U.S. and China are engaged in direct battle over the world’s economic life force: technology. As former Treasury Secretary Henry Paulson has written, “The battle is about whose economy will drive the technology of the future and set the standards for it.” For an example of corporate China pushing technology’s frontiers, see our story on insurance giant Ping An.

 

rockdog

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In fact, there is a hidden monster: China Tabacoo, the sale is unkown but the profit in 2018 was $200 billion, and most of them are collected by centrual government.

Maybe this industry is too shameful to be list, otherwise this Monster will be top10 company in the world...
 

Armand2REP

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Does China rule the Fortune 500?
July 23, 2019 11:41 am | AEIdeas


The latest list of the world’s largest companies by revenue has 121 American companies on it, and 119 from the People’s Republic of China. Fortune itself has decided to hype this. And it is true that China is, in fact, large. But the list reveals more weakness than strength, unless you believe that being permanently sheltered from competition constitutes strength.

It’s worth noting at the outset that disclosures from Chinese companies are not reliable. On their own, Chinese firms make ugly mistakes. Further, the Communist Party does not like bad news, about its economy or its mainstay enterprises. There certainly are very large Chinese companies, but many of them may not be permitted to report declines in the revenue Fortune measures.

Tying together size and lies is ownership. While 119 out of 500 is impressive, one out of 100 is not. There is one private Chinese firm in the Fortune 100 by revenue: Pacific Construction Group at 97.

Ping An reports itself as “non state-owned,” which Fortune and many others wrongly treat as private. It has foreign investors but was founded by state-owned China Merchants. It was later treated as a state majority-owned company. It was never announced as privatized and its ownership structure remains opaque.

Huawei claims to be private, but telecom is required by law to be absolutely controlled by the state and the firm has an ownership structure designed to obscure. If it is also labeled as non-state-owned, Chinese participation in the top 100 consists of 20 state-owned enterprises (SOEs) and three “other.”

The same issues occur in the rest of the list and a good estimate is about 100 SOEs in the top 500 and about 20 non-state. This should not be surprising and it renders the Chinese performance not just less impressive, but a sign of low productivity and innovation.

To illustrate, Sinopec Group is second globally only to Walmart in revenue. Walmart has some monopoly characteristics but, to maintain its dominant position, has to battle Amazon, smaller competitors, and any other firms which wants to enter. In contrast, Sinopec is guaranteed monopoly rights in a range of oil and petrochemical activities in southern Chinese provinces.

Fortune number four China National Petroleum is guaranteed those rights in northern provinces. Number five State Grid is the northern monopoly power distributor (its southern counterpart is #111). The five Chinese banks in the top 67 are the only ones allowed to engage in certain large-scale business. None of the SOEs in the top 500 can ever fail due to commercial competition.

If anything, profits rankings are more disturbing than revenue. China has four entries in the top 10 for total profits, but they are all state banks. There is no good interpretation here. One possibility is that the banks are simply lying, given that we know their reports of non-performing loans are lies.

Cue outraged government officials claiming non-performing loans are low. But if banks aren’t lying, then they are state instruments profiting at the expense of ordinary depositors and SOE borrowers to the tune of $140 billion just for those four. Of course, this could make sense if there was, say, something fundamentally wrong with state finances that is never fixed year after year.

If China matched the US in private firms, it would have size and productivity. As it is, China has undermined the potential indicated by its size. SOEs and state banks are handed a huge market and effectively told to stay out of trouble. Why would they innovate? Why would productivity be high? The huge sum of revenue at Chinese firms in the Fortune 500 primarily represents waste.

https://www.aei.org/publication/does-china-rule-the-fortune-500/
 

rockdog

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Thanks to India market's contribution, Xiaomi becomes the youngest company on Fortune Global 500 list.

Xiaomi becomes the youngest company on Fortune Global 500 list

https://www.dqindia.com/xiaomi-becomes-youngest-company-fortune-global-500-list/

X
iaomi Corporation announced that the company has for the first time made the Fortune Global 500 list, nine years after its iteration.

The Beijing-based global technology player is the youngest company on the Fortune Global 500 list for 2019, ranking 468th, with a revenue of US$26,443.50 million and a net profit of US$2,049.10 million in the previous fiscal year. The company also ranks 7th in the Internet Services and Retailing category.



“It took Xiaomi only nine years to make the Fortune Global 500 list, a milestone that we owe a big thank you to all our Mi Fans and users for their unwavering support. We are also the youngest company on this year’s list, a proud record that we will keep in mind and bring to another level in the global expansion journey,” said Lei Jun, Founder, Chairman and CEO of Xiaomi.

“Over the past year, we have made significant improvements and adjustments in our core strategies, management structures, technology research and development systems, product lineups, brand developments, and much more. These moves have empowered Xiaomi to continuously shine, even in the face of fierce competition from domestic and international peers. This honor does not mark the end of our pursuit, but simply a new beginning. We remain committed to making amazing and highly innovative products at honest prices, as our philosophy states, in an effort to let our Mi Fans, users and investors enjoy a better life,” Lei Jun added.

As an internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core founded in April 2010, Xiaomi was also named to Fortune’s China 500 list for the first time in June, ranking 53rd.

The company reached RMB10,000 million (approx. US$1,453.72 million) threshold in sales revenue in 2012, and RMB100,000 million (approx. US$14,537.21 million) in 2017.

According to international market research organization IDC, as of March 2019, Xiaomi had become the world’s 4th smartphone brand in terms of shipment sales volume, registering a year-on-year growth of 32.2 percent. The company has also incubated and invested in over 200 ecosystem companies, many of which are specialized in developing smart hardware, and thus built the world’s largest consumer IoT platform with approximately 171 million connected IoT devices, excluding smartphones and laptops, by late March 2019.

Xiaomi’s footprints are now present in over 80 markets globally. According to international market research organization Canalys, as of March 2019, Xiaomi was ranked among the top five in more than 40 markets in terms of shipment, and also remained India’s biggest smartphone brand for seven consecutive quarters, with a market share of 31.4 percent. Additionally, the company has maintained a high growth rate in Western Europe, less than two years after its official entry, ranking 4th in terms of smartphone shipments, while making great strides in new markets in Africa and Latin America.

Xiaomi is also dedicated to building and expanding its highly efficient new retail network, which incorporates both online and offline channels, in overseas markets. As of March 31, 2019, there were 480 authorized Mi Home stores overseas, representing a 93.5 percent year-on-year growth, of which over 110 were in Europe and 79 in India.

Xiaomi is investing RMB10 billion in the development of “All in AIoT” in the next five years as part of its “Smartphone+AIoT” dual-core strategy, allowing the prospect to capitalize on artificial intelligence (AI) and IoT development opportunities in the future, and laying a solid foundation for the growth over the next five to 10 years. Moreover, the company is planning to replicate its success by enhancing and adjusting its business strategies from China to overseas ones.


 

Compersion

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No doubt chinese are good business man.

A good business person is also pragmatic and makes a win-win deal (actual) for a sustained long term relationship and sometimes goes beyond equal disposition. Bharat is moving to more generational discourse.
 

desicanuk

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Good. We Browns always support our yellow neighbor instead far away White Angels. :rofl:

On serious note: only combined force of India,Japan&China can only dethrone Western hegemony.
Yes.But not till PRC rids herself of that bunch of fascist thugs called CPC.India is better off with Japan,SK,Thailand,and Vietnam.PRC is destined to self-destruct like all past fascist states.
 

rockdog

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Yes.But not till PRC rids herself of that bunch of fascist thugs called CPC.India is better off with Japan,SK,Thailand,and Vietnam.PRC is destined to self-destruct like all past fascist states.
East and Southeast Asia nations are quite integrated in industry supply chains, using political bias to judge buisness world makes no sense.

BTW, seems Thailand and Vietnam are quite similar to India's positon in value chain, they are even competitors... How can you cooperate each others...
 

rockdog

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Actually i appreciate the nature of East and Southeast Asia nations- you people are very hard working in nature we Indians(South Asians) are little smarter but that is not channeled well as we are dragging down each other due to political/ideological differences.

Made in Japan --Quality
Made in Korea--Best
Made in China -- Che**:rofl:

Enjoy few more years honeymoon because when your life style progress your salaries increase and so your USP-low price will collapse in no time.

PS: Like typical Chinese don't brag IQ score ...then i brought CEO heads of all major companies worldwide.
No problem,

Japan, Korea, Taiwan, China are all upgrading from low end to high end, step by step, decades by decades. This story happened in East Asia all the time, but it never happened in subcontinent so far.

10 years ago, i can't imagine Chinese mobile brands would take more than half share in forgein market like somehow-hostile nation as India, but what now?

Plus for brand DJI, anyone can't say it's the Quality, Best but Cheap in Drone market?

For IQ and CEO topic, i think if China & India has simillar popular producre similar amount of talents, the difference is: more and more talents of Chinese working for their monther land like its own top500 companies, but most talent Indian working for western nations, it's not that something need to be proud of but a pity.

Chinese experienced same mindset, but now we never feel proud...
 

rockdog

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Upgrading!! :rofl:
1970's Made in Japan==Quality in 2019 Still Japan means Quality
1980's Korea==Good in 2019 still Good
1990's Rise of China with Cheap products, 2019 Still Cheap.

btw am not saying all but 98% Made in China products means Cheap.
Wel, you can keep POV as you like, sometimes as a consumer end you can't feel those changes and upgradings are happening. Debating this with you is quite time wasting, that's why top500 here is quite good reference. Believe or not deosn't make sense to me, i just like to present those data than express personal feelings....




I don't think those CEO's working in West is any loss or proud thing (as they are typical Indians -- smart and highly managerial material in any circumstances).IF they stay in India they mostly work in Govt jobs.So,they are just individual Indians succeeded the ladder on their own,that's it.
Most Chinese appraciate but not admire oversea Indian's success, check out world's top 10 (https://www.investopedia.com/articles/personal-finance/030415/worlds-top-10-internet-companies.asp) Internet companies, how many Chinese companies there and how many Indian ...

Theroratically, at the beginning of Internet era, India had better chance than China since English speaking people, oversea India elite group and large amount of outsourcing companies...

But right now most Indian Internet companies has China/Softbank capital and Chinese Internet companies are even penetrating India market. So far i only see TATA consultant is relatively active in China.

Those Indian top brains not working for Indian companies not our loss, but yours ...
 
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xizhimen

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Japan/China/Russia/Germany/France all are developed because of their own languages not because they spoke english..
South Korea now is developing much better than Japan, Japan's economy is contracting while Korean's expanding, but Asian countries are not very united, If China, Japan and Korea form a trade union, it will be biggest economic entity in the world, far bigger than EU and US.
 

Indx TechStyle

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it will be biggest economic entity in the world, far bigger than EU and US.
Not actually, not even 50-60% of US-EU block or not exceeding 30% of individual US or EU. Not even East Asia combined that needs at least 15-20 years to surpass US-EU block.
 

asianobserve

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Good. We Browns always support our yellow neighbor instead far away White Angels. :rofl:

On serious note: only combined force of India,Japan&China can only dethrone Western hegemony.

I prefer the status quo than greedy and insenditive Worldview of China. Japam will not side with China in a Million yrars.

Maybe anothe nsive Indian leader will bow down ahain to China while China cannibalizes Indian terrotory....
 

xizhimen

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Not actually, not even 50-60% of US-EU block or not exceeding 30% of individual US or EU. Not even East Asia combined that needs at least 15-20 years to surpass US-EU block.
You can't put US and EU together as one entity, China+Japan+Korea have GDP size bigger than eithre US or EU.
 

asianobserve

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South Korea now is developing much better than Japan, Japan's economy is contracting while Korean's expanding, but Asian countries are not very united, If China, Japan and Korea form a trade union, it will be biggest economic entity in the world, far bigger than EU and US.

Do not understimate Japan. It will be an economic force for a long time especially with robotics and AI starting to dominate.
 

xizhimen

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Do not understimate Japan. It will be an economic force for a long time especially with robotics and AI starting to dominate.
Google and find out who are the leaders in those fields, Japan is not one of them.
 
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Indx TechStyle

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You can't put US and EU together as one entity, China+Japan+Korea have GDP size bigger than eithre US or EU.
I'm comparing individual entities with same. Why I'm not supposed to compare one region with other and instead one region with a country? All are minions are except China.
Google and find out who are the leaders in those fields, Japan is not one of them.
It is. It's just going to suffer in manufacturing.
 

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