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Our reporter Wu Qing reports from Beijing

On August 5, a reporter from China Business News learned from Fortune Chinese that it released the latest Fortune Global 500 list simultaneously with the world on August 5, 2024.

The list shows that the total operating income of the Fortune Global 500 companies this year is about 41 trillion US dollars, equivalent to one-third of the global GDP, a slight increase of about 0.1% over last year. The threshold for this list (minimum sales revenue) has increased from 30.9 billion US dollars to 32.1 billion US dollars. The total net profit of all listed companies increased by 2.3% year-on-year to about 2.97 trillion US dollars. At the same time, the number of companies on the list in various countries and industries has also changed significantly.

When interviewed by reporters, many industry insiders said that the changes in the list still reflect the uneven recovery of the global economy and the development of various industries. One year's changes are not enough to reflect the overall picture and changing trends. However, there are some points that are still worthy of attention. Since last year, relying on the rise of AI, especially generative AI, and the gradual recovery of downstream consumer electronics fields, technology and Internet companies have taken the lead in recovery and performed impressively.

Behind the changes in the list

This year, including companies in Taiwan, China has a total of 133 companies on the list, 9 fewer than last year. In contrast, the United States has a total of 139 companies on the list this year, 3 more than last year, and the number of large companies ranks first among all countries. This is the first time since 2018 that the number of Chinese companies on the list is less than that of the United States.

However, the reporter noted that the number of Chinese companies on the Fortune Global 500 list has increased from less than 10 before 2000 to 43 in 2010 and now to 133. China is undoubtedly the country with the greatest progress and gains in the global economic and corporate landscape in recent decades. In contrast, Japan has a total of 40 companies on the list this year, ranking third in terms of the number of companies on the list. When the Fortune Global 500 debuted in 1990, Japan had as many as 149 companies on the list.

Today, China, the United States and Japan together contribute about two-thirds of the companies, revenues and profits on the list. And a quarter of the Fortune Global 500 companies are headquartered in Beijing, Tokyo, New York, Shanghai and Seoul.

The list shows that the total revenue of the 133 Chinese companies on the list this year will be approximately US$11 trillion in 2023, a decrease of approximately 6% compared with the 142 companies on the list last year; the average sales revenue is approximately US$83 billion, lower than the average revenue of US$99 billion for US companies on the list, and slightly higher than the average of all 500 companies on the list; however, there is still a gap in profitability compared with the United States. The average profit of US companies is US$8.8 billion, and the average for companies on the list in mainland China (including Hong Kong) is US$3.9 billion.

A person in the technology industry told reporters that the changes in the list in one year do not reflect the overall changes and trends. After the epidemic, the U.S. economy was the first to recover, and the wave of AI technology enhanced the overall performance of American companies.

"The operations of American companies on the list in 2021 are still at a low ebb. The American companies on the list took the lead in restructuring the global industrial chain and improving their operating conditions, and played a leading role in helping global companies get out of difficulties and enter an upward channel. This is worthy of thinking and reference." Wang Zhile, a special author of Fortune Chinese Network and former director of the Multinational Corporations Research Center of the Ministry of Commerce, pointed out to reporters that by observing from both a historical perspective and a global perspective, we can understand the progress of Chinese companies and the gap that still exists with other advanced companies, thereby promoting the continuous improvement of Chinese companies and forming more world-class companies.

Industry insiders believe that while there are some problems in the development of Chinese companies, there are also new leaps forward that Chinese companies have made. For example, among the 15 fields in which Chinese companies are listed, the field of "automobiles and parts" developed more prominently last year.

The list shows that a total of 10 Chinese automobile and auto parts companies have entered the Fortune Global 500 in 2024. Among these 10 companies, Chery made the list for the first time, ranking 385th with a revenue of US$39.1 billion. The rankings of the other 9 companies have mostly risen year-on-year. Last year, BYD was the Chinese company with the largest ranking improvement. This year, the company's revenue increased from US$63 billion last year to US$85.1 billion, an increase of 69 places from the previous year. At the same time, after CATL made its first appearance on the list last year, its revenue this year increased from US$48.8 billion to US$56.6 billion. Geely's revenue also rose 40 places, from US$60.4 billion to US$70.4 billion. These companies have driven Chinese cars, especially electric cars, to the world market.

Wang Zhile believes that Chinese companies such as Huawei, BYD and CATL are already highly competitive world-class companies.

Internet recovery: Tech giants perform well

Today, the high-tech (technology) field is at the forefront of global technological development and the focus of global competition. According to Fortune's classification, this business field includes companies in the categories of networks, communication equipment, Internet services, computers, electronic and electrical equipment, semiconductor components, computer software, and artificial intelligence.

"As geopolitical conflicts intensify, the restructuring of the global supply chain of high-tech companies has become the key to corporate competition, and the high-tech field has also become a core area of ​​competition among countries," said Wang Zhile.

There are 33 high-tech (technology) companies on the Fortune Global 500 list in 2024, with an average operating income of $88.2 billion and an average profit of $14.6 billion. The operating profit rate of high-tech companies is among the best in the industry. Huawei remains the leader of Chinese companies in this field. The company, which has emerged from difficult times, had sales of nearly $100 billion and profits of about $12.3 billion last year.

Among these 33 high-tech companies, 16 are American high-tech companies, with an average operating income of US$102.6 billion and a profit of US$23.6 billion. There are 17 non-American high-tech companies (including 6 mainland Chinese companies) in the 2024 ranking, with an average operating income of US$74.6 billion and an average profit of US$6.3 billion. Their profitability is considerable: Apple, Alphabet, Microsoft and Meta Platforms alone generated a net profit of US$282.2 billion.

Data shows that the overall profits of the 500 companies are back on track. In 2023, the total profits of the world's top 500 companies will be close to 3 trillion US dollars, an increase of 2.3% over the previous year. Technology giants performed outstandingly. Three American technology companies - Apple, Google's parent company Alphabet and Microsoft ranked second, fourth and fifth respectively in the most profitable companies (profit list).

Thanks to the strong demand brought by the artificial intelligence boom, Nvidia made the list for the first time, ranking 222nd, the highest ranking among the companies making the list for the first time this year.

"The slow recovery of the global economy and downstream consumer electronics industry, coupled with the wave of generative AI, has greatly boosted the performance growth of these technology giants." The above-mentioned technology industry insider said, however, we still need to remain calm in the AI ​​craze. The AI ​​industry is still exploring the implementation scenarios and it is too early for large-scale commercial implementation. OpenAI may face a loss of up to US$5 billion this year, and the recent collective decline in stocks of US technology giants are all reminders.

At the same time, the rankings of large companies in the Internet field have also risen overall. Among the five domestic Internet giants shortlisted, except for Alibaba, which dropped two places, the rankings of JD.com, Tencent and Meituan have all improved, and Pinduoduo has made the list for the first time. Benefiting from the recovery of China's Internet industry, Meituan has become the Chinese company with the largest ranking improvement in the list, jumping 83 places to 384th. JD.com, ranked 47th, has once again entered the top 50, replacing Ping An of China as the largest private company in mainland China.

Industry insiders believe that from joining the World Trade Organization to 2021, Chinese modern enterprises have grown from small to large, and now Chinese enterprises are facing the challenge of growing from large to strong. The growth of enterprises from large to strong means not only the enhancement of hard power such as technology and products, but also the enhancement of soft power such as strategic management and compliance management. "The goal of Chinese enterprises should be to achieve a new leap from large to strong on the basis of joining the Fortune Global 500 and taking world-class enterprises as the development goal," said Wang Zhile.

(Editor: Zhang Jingchao, Reviewer: Li Zhenghao, Proofreader: Yan Jingning)