It’s China’s World

[beijingwalker]

It’s China’s World
By Geoff Colvin
July 22, 2019

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.

The battle is not just metaphorical; it involves life-and-death issues of national security. That’s why, most prominently, the U.S. has partially banned American companies from buying products made by telecom-equipment giant Huawei (No. 61 on our list), saying the company is state-directed and could sabotage 5G infrastructure or use it to steal data. (Huawei says none of those things are true.) China has set explicit goals of dominating such fields as artificial intelligence, quantum computing, robotics, and autonomous vehicles. As these fights escalate, other nations may feel they must commit to either Chinese or U.S. technology, raising the stakes even higher.

It’s true that Chinese companies’ revenues account for only 25.6% of the Global 500 total, well behind America's 28.8%. But that’s to be expected. China is the rising power, economically smaller but growing much faster. The No. 1 nationality among the top 50 companies in this year’s Global 500 is American; among the bottom 50, it’s Chinese. Those companies near the bottom are rising quickly, and like their country, they’re burning with ambition.

President Xi Jinping has said that by 2049, the communist revolution’s centennial, China will be “fully developed, rich, and powerful,” a goal that China expert Graham Allison of Harvard says includes being “unambiguously No. 1,” with a military “that can take on and defeat all adversaries.” With that in mind, be sure to read “Boxed In at the Docks,” which depicts China’s takeover of Greece’s largest port, and how it fits in China’s vast Belt and Road Initiative. The article describes the crucial role of China’s state-owned enterprises—82 of the Chinese firms in the Global 500 are “SOEs”—which receive generous subsidies that advantage them over the West’s private sector.


Fortune’s founder, Henry Luce, famously declared in 1941 that the 20th century was the American Century. His argument was largely right and often prescient. Whether the 21st century becomes the Chinese Century in the full sense—with China dominating culture, ideals, and concepts of human rights and human nature—remains to be seen. But at least in business, the Chinese Century is growing intensely more Chinese, and faster every day.

https://fortune.com/longform/fortune-global-500-china-companies

 

[beijingwalker]

Based on everyday western media, China is a hell on earth, the worst place can be in this world, autocratic dictatorship, police station, world worst human rights abuser, baby eater, organ harvester, genocide committer, loan shark, technology thief... the list goes on forever. But at the same time, we see watershed overtakings on monthly basis, badmouthing other's won't help you progress, hardworking does.

 

[CHN Bamboo]

这是一个典型美式土人的吹嘘标题，不如把它换成世界五百强中国入围企业数超越美国？
或者加上如上那一段比较好？

中国社会总零售额似乎已经超过美国了，500强数量也超过，很正常啦。
以后500强企业数量是美国的两倍，我都不会惊讶。

 

[Mista]

中国社会总零售额似乎已经超过美国了，500强数量也超过，很正常啦。

但现阶段中国的500强含金量还是不高啊，主要还是以国企为主。而这些国企往往都有获得垄断市场的特殊地位。

利润最高的还是银行。

Spoiler: Companies by net profit

 

[CHN Bamboo]

但现阶段中国的500强含金量还是不高啊，主要还是以国企为主。而这些国企往往都有获得垄断市场的特殊地位。

利润最高的还是银行。

Spoiler: Companies by net profit

以下截取自财富中文网：

中国与美国、以及世界的对比​

　　但是，与世界500强比较，中国企业盈利指标比较低。世界500强的平均利润为43亿美元，而中国上榜企业的平均利润是35亿美元。中国企业的盈利能力没有达到世界500强的平均水平。如果与美国企业相比，则存在的差距更加明显。

　　其中，销售收益率和净资产收益率两个指标能够体现出企业经营状况的优劣。

　　2019年，入榜的中国企业(不计台湾地区企业)119家，平均销售收入665亿美元，平均净资产354亿美元，平均利润35亿美元。根据这三个数据计算，上榜中国企业的平均销售收益率为5.3%，低于美国企业的7.7%和全球平均的6.6%；平均净资产收益率是9.9%，低于美国企业的15%，也低于全球平均的12.1%。

　　不过，需要注意的是中国公司在销售收益率和净资产收益率两个指标上已经扭转了近年来的下行趋势。此外，与世界500强横向比较，2018年，中国上榜企业平均销售收入与净资产两项指标也与世界500强上榜企业数值基本持平；与传统经济大国的上榜企业相比，上榜中国企业在销售规模和资产规模已经不输日本、英国、法国与德国企业。

——至此为止。


目前中国的500强企业确实存在大而不强的问题，但随着GDP总量提升（代表着中国社会消费能力和科技水平的提高）以及越来越多大企业的诞生，中国的世界500强企业总量会远超美国，我相信在不远的将来也能在其他指标赶上甚至超越美国。


你要知道的是，现在的中国还处在上升期，尽管不像几年前那样有二位数级超高速的增长，但拥有十几万亿美元的经济总量并且增速仍然全球领先。中国不像美国的潜力已经很有限，我国仍有很大的进步空间且丝毫没有陷入停滞的迹象。


所以我认为，中国所有的500强企业总量超过美国是一件值得拿来谈论的好事，即使中国的企业在纸面上的其他指标现在还不如美国企业，但它显示出的积极趋势还是值得我们注意的。

 

[Indos]

I think Muslim world will also be emerging and will become a big force inshaAllah starting at 2035 economically and militarily. IMO Muslim world will also tend to become more conservative spiritually and in majority will embrace democracy. I hope I still live at that time.

 

[Mista]

以下截取自财富中文网：

中国与美国、以及世界的对比​

　　但是，与世界500强比较，中国企业盈利指标比较低。世界500强的平均利润为43亿美元，而中国上榜企业的平均利润是35亿美元。中国企业的盈利能力没有达到世界500强的平均水平。如果与美国企业相比，则存在的差距更加明显。

　　其中，销售收益率和净资产收益率两个指标能够体现出企业经营状况的优劣。

　　2019年，入榜的中国企业(不计台湾地区企业)119家，平均销售收入665亿美元，平均净资产354亿美元，平均利润35亿美元。根据这三个数据计算，上榜中国企业的平均销售收益率为5.3%，低于美国企业的7.7%和全球平均的6.6%；平均净资产收益率是9.9%，低于美国企业的15%，也低于全球平均的12.1%。

　　不过，需要注意的是中国公司在销售收益率和净资产收益率两个指标上已经扭转了近年来的下行趋势。此外，与世界500强横向比较，2018年，中国上榜企业平均销售收入与净资产两项指标也与世界500强上榜企业数值基本持平；与传统经济大国的上榜企业相比，上榜中国企业在销售规模和资产规模已经不输日本、英国、法国与德国企业。

——至此为止。


目前中国的500强企业确实存在大而不强的问题，但随着GDP总量提升（代表着中国社会消费能力和科技水平的提高）以及越来越多大企业的诞生，中国的世界500强企业总量会远超美国，我相信在不远的将来也能在其他指标赶上甚至超越美国。


你要知道的是，现在的中国还处在上升期，尽管不像几年前那样有二位数级超高速的增长，但拥有十几万亿美元的经济总量并且增速仍然全球领先。中国不像美国的潜力已经很有限，我国仍有很大的进步空间且丝毫没有陷入停滞的迹象。


所以我认为，中国所有的500强企业总量超过美国是一件值得拿来谈论的好事，即使中国的企业在纸面上的其他指标现在还不如美国企业，但它显示出的积极趋势还是值得我们注意的。

未来中国经济总量超越美国应该没悬念吧？但我想表达的是以更全面的角度来看待中国国企在今天和明天中国经济所扮演的角色与可持续性。

 

[hiseen]

Not anxious, the 20th century has only begun for 20 years, and it is the watershed in the middle of the century. China does not pursue to completely surpass the United States. In the next 100 years, the world pattern will be Two superpowers and many powerfulpowers.

 

[BL33D]

It’s China’s World
By Geoff Colvin
July 22, 2019

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.

The battle is not just metaphorical; it involves life-and-death issues of national security. That’s why, most prominently, the U.S. has partially banned American companies from buying products made by telecom-equipment giant Huawei (No. 61 on our list), saying the company is state-directed and could sabotage 5G infrastructure or use it to steal data. (Huawei says none of those things are true.) China has set explicit goals of dominating such fields as artificial intelligence, quantum computing, robotics, and autonomous vehicles. As these fights escalate, other nations may feel they must commit to either Chinese or U.S. technology, raising the stakes even higher.

It’s true that Chinese companies’ revenues account for only 25.6% of the Global 500 total, well behind America's 28.8%. But that’s to be expected. China is the rising power, economically smaller but growing much faster. The No. 1 nationality among the top 50 companies in this year’s Global 500 is American; among the bottom 50, it’s Chinese. Those companies near the bottom are rising quickly, and like their country, they’re burning with ambition.

President Xi Jinping has said that by 2049, the communist revolution’s centennial, China will be “fully developed, rich, and powerful,” a goal that China expert Graham Allison of Harvard says includes being “unambiguously No. 1,” with a military “that can take on and defeat all adversaries.” With that in mind, be sure to read “Boxed In at the Docks,” which depicts China’s takeover of Greece’s largest port, and how it fits in China’s vast Belt and Road Initiative. The article describes the crucial role of China’s state-owned enterprises—82 of the Chinese firms in the Global 500 are “SOEs”—which receive generous subsidies that advantage them over the West’s private sector.


Fortune’s founder, Henry Luce, famously declared in 1941 that the 20th century was the American Century. His argument was largely right and often prescient. Whether the 21st century becomes the Chinese Century in the full sense—with China dominating culture, ideals, and concepts of human rights and human nature—remains to be seen. But at least in business, the Chinese Century is growing intensely more Chinese, and faster every day.

https://fortune.com/longform/fortune-global-500-china-companies

Excellent job. Its commendable the advancements you guys have achieved in such a short time. India will also catch up to US in a few decades. We are slow due to the nature of our government. We also want to replicate the work you guys have done in uplifting the poor in your country. Keep it up. There are problems which we can discuss but its not even a contention the feat you guys have achieved.

 

[beijingwalker]

China passes US on Fortune Global 500 for first time

Jul 23, 2019

The number of Chinese companies which made it on the Fortune Global 500 reached 129, surpassing the US for the first time as the latter country had 121 companies on the list, the magazine reported on Monday.

China's largest State-owned oil and gas company Sinopec Group climbed one spot on Fortune's Global 500 list, reaching second place due to sharp gains in both revenue and profits last year.


Behind Walmart - whose revenue was U$514.41 billion(S$701.8 billion) - Sinopec Group saw a 26.8 per cent growth in revenue to U$414.65 billion last year, and profits in 2018 reached $U5.85 billion, a year-on-year growth of 280.1 per cent.


The strong results were driven largely by robust domestic demand for gas and chemical products, the report said.


Another Chinese company, China National Petroleum, grabbed the fourth spot with revenue of U$392.98 billion in 2018, followed by State Grid with $387.06 billion.

With revenue of U$69.85 billion, JD.com continues to lead Chinese internet companies, reaching the 139th spot on the list.

Alibaba Group Holding, whose revenue reached U$56.15 billion, was the company with the fastest growth rate, jumping 118 spots to 182.

Gree Electric Appliances Inc and Xiaomi Corp were newcomers to this year's list, and 9-year old Xiaomi was the youngest company among the Global 500.

Three Chinese companies were included in the top 10 of the Fortune Global 500, and are mainly involved in natural resources.


https://www.asiaone.com/china/china-passes-us-fortune-global-500-first-time

 

[CHN Bamboo]

未来中国经济总量超越美国应该没悬念吧？但我想表达的是以更全面的角度来看待中国国企在今天和明天中国经济所扮演的角色与可持续性。

未来中国经济总量超越美国的确毫无悬念。


不拿GDP来计算，拿社会消费品零售总额进行比较，中美已经非常接近。
*2018年1-12月，中国社会消费品零售总额380987亿元（按2018年平均汇率折合57551亿美元）；
*2018年1-12月同期美国全国社会消费品零售总额为60364.2亿美元；
也就是说，2018年中国全年消费总额达到了美国95%的水平，并且仍然在高速增长。
市场超越美国，经济总量超过它只是时间问题。


至于中国国企，它的存在是现实需要——
保障中国的金融安全、能源安全、粮食安全、税收（养老金）等等，并不以盈利为主要目的。

举个例子，国家电网给民用的电力一直是亏钱倒贴的，从工业用电赚一部分补偿民用的亏损，这也使得中国民用电价在世界上较低。

还有一些非经营目的的功能，社会办幼儿园、疗养院，中石油就曾进行了很多这样的公益性项目。
中储粮，玉米价格高的时候尽管有储备粮，但为了稳定市场，还是只能亏本卖。
做几十年没收入的基础设施建设的也是国企。
往西藏修铁路、修5G基站、电站需要倒贴钱，但还是建了。
至于对员工较优厚的福利保障（医保、很少开除员工、发各种各样的优惠卡等等）、工资相对社会平均工资还要高不少也是国企非经营性目的的体现。


至于国企所存在的问题——垄断、补贴、竞争性，
中国从几十年前起就在针对这些问题进行制度性改革，例如九十年代，朱镕基在国企改革方面下了很多功夫：
拆分、形成双寡头竞争的局面，这样能使得原本的垄断性国企拥有完全竞争市场的微观环境，
南车北车、电信联通移动、三桶油就是这样诞生的；（虽然南车北车后来又合并了，那是另一个话题了）


在海外上市、学习海外管理经验和经营管理模式，使得现在的中国央企在管理水平上，基本处于紧随国际领先水平的一流地位；（给央企授课答疑的不仅有国内具体政策制定的参与者和管理者，还有普华永道、德勤、麦肯锡等国际顶尖的财管咨询公司的合伙人，部分国际咨询公司甚至直接参与了央企管理体系的构建）


目前中国国企管理制度和民营企业比起来，有很大的优势，可能会有个别民营企业会超过国企水准，但大多数都不如。


最后——我认为任何制度都兼有利弊，国企再如何改革也会有效率低的毛病，中国国企实力虽不如美国企业，整体还是处于世界中上游水平。（看看中国电网的在册专利，堪比华为）


国企服务社会的属性大于盈利，有其他问题就努力改正，中国的国企改革一刻也没有停下来，私有化绝对是放在最后的选择。
国企私有化之后或者放开领域给私企，利润也许会提高了，但对于普罗大众来说害处会多于好处，钱都进入了私人的口袋里，就算利润提高了，和平民也没有关系。
（反倒平民会饱受涨价之苦、给社保的税收大量减少也会影响医保基金和养老金）


引用其他网站的评论
*哪个私企不是拼命想狡兔三窟，专门注册公司来避税的。
他们赚的钱和你我没关系，市值万亿也和你我没关系。*

 

[Mista]

未来中国经济总量超越美国的确毫无悬念。


不拿GDP来计算，拿社会消费品零售总额进行比较，中美已经非常接近。
*2018年1-12月，中国社会消费品零售总额380987亿元（按2018年平均汇率折合57551亿美元）；
*2018年1-12月同期美国全国社会消费品零售总额为60364.2亿美元；
也就是说，2018年中国全年消费总额达到了美国95%的水平，并且仍然在高速增长。
市场超越美国，经济总量超过它只是时间问题。


至于中国国企，它的存在是现实需要——
保障中国的金融安全、能源安全、粮食安全、税收（养老金）等等，并不以盈利为主要目的。

举个例子，国家电网给民用的电力一直是亏钱倒贴的，从工业用电赚一部分补偿民用的亏损，这也使得中国民用电价在世界上较低。
View attachment 570540

还有一些非经营目的的功能，社会办幼儿园、疗养院，中石油就曾进行了很多这样的公益性项目。
中储粮，玉米价格高的时候尽管有储备粮，但为了稳定市场，还是只能亏本卖。
做几十年没收入的基础设施建设的也是国企。
往西藏修铁路、修5G基站、电站需要倒贴钱，但还是建了。
至于对员工较优厚的福利保障（医保、很少开除员工、发各种各样的优惠卡等等）、工资相对社会平均工资还要高不少也是国企非经营性目的的体现。


至于国企所存在的问题——垄断、补贴、竞争性，
中国从几十年前起就在针对这些问题进行制度性改革，例如九十年代，朱镕基在国企改革方面下了很多功夫：
拆分、形成双寡头竞争的局面，这样能使得原本的垄断性国企拥有完全竞争市场的微观环境，
南车北车、电信联通移动、三桶油就是这样诞生的；（虽然南车北车后来又合并了，那是另一个话题了）


在海外上市、学习海外管理经验和经营管理模式，使得现在的中国央企在管理水平上，基本处于紧随国际领先水平的一流地位；（给央企授课答疑的不仅有国内具体政策制定的参与者和管理者，还有普华永道、德勤、麦肯锡等国际顶尖的财管咨询公司的合伙人，部分国际咨询公司甚至直接参与了央企管理体系的构建）


目前中国国企管理制度和民营企业比起来，有很大的优势，可能会有个别民营企业会超过国企水准，但大多数都不如。


最后——我认为任何制度都兼有利弊，国企再如何改革也会有效率低的毛病，中国国企实力虽不如美国企业，整体还是处于世界中上游水平。（看看中国电网的在册专利，堪比华为）


国企服务社会的属性大于盈利，有其他问题就努力改正，中国的国企改革一刻也没有停下来，私有化绝对是放在最后的选择。
国企私有化之后或者放开领域给私企，利润也许会提高了，但对于普罗大众来说害处会多于好处，钱都进入了私人的口袋里，就算利润提高了，和平民也没有关系。
（反倒平民会饱受涨价之苦、给社保的税收大量减少也会影响医保基金和养老金）


引用其他网站的评论
*哪个私企不是拼命想狡兔三窟，专门注册公司来避税的。
他们赚的钱和你我没关系，市值万亿也和你我没关系。*

抱歉，我经济的知识是透过英文学习的，请允许我用英文回答。

Theoretically or as a general principle which most economists agree, the free market of supply and demand is the most efficient way of settling what the price and quantity a product or service should be.

When you subsidize you create distortions in the market, leading to inefficiencies and deadweight losses. Overcapacity （产能过剩）happens in the example of a subsidy as it creates excess supply. Consumer and producer benefits, taxpayers pay.

Deadweight Loss of a Subsidy

As the total surplus in a market is lower under a subsidy than in a free market, the conclusion is that subsidies create economic inefficiencies, known as deadweight loss. The deadweight loss is represented by the shaded triangle in the diagram above.

It's inefficient because it costs a government more to enact a subsidy than the additional benefits to consumers and producers it creates.

(A monopoly leads to inefficiencies as well, but for the purpose of this post I will skip it as it's a bit long and too technical. There are different types of monopoly, but generally for most monopolies they create inefficiency as well.)

So why do governments still enact subsidies?

You're right that it's not all about profitability and pure economic growth.

Despite the apparent inefficiency of subsidies, it isn't necessarily true that subsidies are bad. It sometimes make sense when considering fairness or equity issues or when considering markets for necessities such as food or energy where the limitation on willingness to pay is affordability rather than product attractiveness. This is especially true in a developing country like China where incomes are still relatively low and the economic disparities exist between provinces.

It's also possible that subsidies can raise rather than lower total surplus when positive externalities are present in a market.

[An externality is a cost or benefit to someone other than the producer or consumer. Negative externalities (like pollution, congestions) are costs and positive externalities (like education) are benefits. In such cases, you should tax the producer or the consumer to internalize and discourage negative externality or subsidize to encourage positive externality. This is represented by social benefit rather than private benefit.]

Subsidies for markets positive externalities

This is where it gets tricky as you can't measure externalities like pollution in dollars and cents, and different people have different views on what the externality is worth. In Singapore we do calculate externalities and factor them in, but people will still complain policies are not 'caring' enough.

IMO the US whose culture is so dominated by individualism, policymakers (especially Republicans) tend to adopt laissez-faire policies and underestimate externalities. This is why they have such an advanced economy and technology with high GDP per capita and yet still fall short on areas such as public transport and education. OTOH China which is transitioning into the market economy since Deng, it's the opposite direction. I think the top concern in reforming SOEs is employment actually. Both sides can learn and move towards each other's direction.

The reform of SOEs and the financial sector (another long point on allocation efficiency of capital but I'm too lazy to write lol) will ensure China's sustainability of long term rapid growth. Subsidies should be the exception, not the norm even for SOEs.

Spoiler: The extras

 

[nang2]

I think Muslim world will also be emerging and will become a big force inshaAllah starting at 2035 economically and militarily. IMO Muslim world will also tend to become more conservative spiritually and in majority will embrace democracy. I hope I still live at that time.

Muslim world won't be dominating until it embraces liberty, not democracy. During the heyday of Islamic civilization, both commerce and religions had plenty of freedom while Muslim rulers primarily concerned themselves with security and did so effectively. It is no longer true in Muslim world.