China leads company count on Fortune Global 500 list again

[beijingwalker]

China leads company count on Fortune Global 500 list again​

2023-08-03 00:01

Chinese companies have overtaken their United States counterparts in terms of number on this year's Fortune Global 500 list, which was unveiled on Wednesday and tracks the world's richest enterprises in terms of revenue.

Industry experts said the list shows China's growing prowess in emerging sectors, such as new energy, on the global stage.

A total of 142 Chinese companies, including those in Taiwan, made it to the annual list, marking the fifth consecutive year that Chinese companies topped the list in terms of number. The US and Japan followed with 136 and 41 enterprises, respectively.

China's Contemporary Amperex Technology Co Ltd — the world's largest electric vehicle battery maker — debuted on the list this year and ranked 292nd.

Another Chinese company, new energy vehicle manufacturer BYD, jumped 12 spots compared with last year to rank 212th.

In total, nine Chinese vehicle manufacturers have made it to the list, with most of them gaining ground with new energy vehicle technologies.

Wang Peng, a senior researcher at the Beijing Academy of Social Sciences, said this collective performance of Chinese companies demonstrated China's increasing international influence on the new energy sector. "China has gained momentum in NEV-related technologies and products in recent years," he said.

Many Chinese NEV companies have taken the lead globally with their technological breakthroughs in the new energy sector, according to Wang. He said that given the country's huge market, "Chinese companies in the new energy sector are expected to have more presence on the global stage in the coming years".

China sold about 6.89 million NEVs last year, an increase of more than 93 percent year-on-year, according to the China Association of Automobile Manufacturers.

A report released by market consultancy SNE Research last year showed that Chinese companies accounted for six of the top 10 NEV battery makers globally in terms of installation.

However, Wang Zhile, a former senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said in a note that the ranks of many leading Chinese companies have declined this year, and the gap between their average profit and that of the other Fortune Global 500 companies has widened.

The average profit of companies from the Chinese mainland and Hong Kong on the list is $3.9 billion, lower than the global average of $5.8 billion and US firms' $8 billion.

The COVID-19 pandemic and conflicts around the world have changed the global economy, and the global industrial chain has started to restructure, he said.

"These external factors have affected the development of Chinese companies to some extent. Big Chinese names still face some challenges in their high-quality development," he added.

China leads company count on Fortune Global 500 list again

www.chinadaily.com.cn

 

[beijingwalker]

Chinese EV maker BYD is rocketing up Fortune’s Global 500 ranking​

Meanwhile, Chinese battery giant CATL made it in the Global 500 for the first time​

August 3 2023

Photo: Nick Carrey (Reuters)

China’s auto industry is on the up and up. Its EV exports are set to double this year, and the country could well snatch the crown from Japan as the world’s top car exporter.

The newly released Fortune Global 500 list, which ranks companies worldwide by revenue, also reflects China’s rise as a global automotive powerhouse. One useful indicator is which companies have climbed the most in ranks relative to the previous year.

BYD’s soaring revenues are propelling it up Fortune’s Global 500 ranking​

Chinese EV maker BYD, which was the top seller worldwide of electric and plug-in hybrid vehicles last year, shot up 224 ranks compared to last year, when it first made the Global 500 list. It is currently ranked 212th. That improvement is only second to US information technology services provider TD Synnex, whose ranking rose 236 spots.

BYD’s vertical integration strategy is propelling the automaker far ahead of its rivals in terms of production capacity and market share.

The company has built a full supply chain spanning lithium mines, lithium processing, battery production, and an in-house computer chip unit. It’s even building out a fully-fledged car shipping operation to ensure it can transport its finished products to export markets.

The strategy is paying off: in July, BYD broke its monthly EV sales record for a third consecutive month.

CATL made the global top 500 list for the first time​

Another major player in the Chinese EV industry is CATL. The battery giant made it on Fortune’s Global 500 list for the first time this year, reflecting the surging demand in China and worldwide for its products. CATL is currently ranked 292nd.

CATL’s induction into the top 500 ranking is in part thanks to consecutive quarters of soaring revenues and profits. Last week, CATL reported a 56% increase in revenue to 100 billion yuan ($13.9 billion) and a 63% jump in profits.

Meanwhile, some of the companies that saw the largest drops in rankings reflect the ailing state of China’s property market. Cement maker Anhui Conch and steelmaker Beijing Jianlong Heavy Industry sank 111 and 102 places, respectively, to 464th and 465th place.

Foreign automakers are paying “tuition fees” to their Chinese rivals​

It’s not just battery and EV sales that mark the Chinese EV industry’s dominance. Foreign automakers are now turning to Chinese EV technology in a bid to boost their own competitiveness.

Last week, German automaker Volkswagen invested $700 million for a 5% stake in its Chinese rival Xpeng, and the two will jointly develop EVs using the latter’s platform technoloy. An EV platform is the base layer structure of the car, and can save costs and time by being used across different models.

The news follows Volkswagen subsidiary Audi’s recent announcement that it’s working with Chinese state-owned automaker SAIC to develop EVs. Audi is also reportedly looking to buy SAIC’s EV platform.

As one Chinese media outlet put it (link in Chinese), referring to the Volkswagen-Xpeng tie-up: “Volkswagen just paid Xpeng [$700 million] in tuition fees.”

US carmaker Ford is arguably doing the same with its battery factory partnership with CATL. Other foreign auto companies will likely follow suit.

Chinese EV maker BYD is rocketing up Fortune’s Global 500 ranking

Meanwhile, Chinese battery giant CATL made it in the Global 500 for the first time

qz.com

 

[kankan326]

Coincident or not, this reflects real GDP scales