Latest News:  
Beijing   Thundershower/Overcast    29 / 23 ℃  City Forecast

English>>China Business

Fortune 500 Chinese companies are large, but not strong

(People's Daily Online)

08:41, August 09, 2012

The Fortune magazine has recently released the latest list of the top 500 companies in the world, which attracted extensive attention. Among them, 79 are Chinese enterprises, outnumbering Japan for the first time.

On the one hand, it is the huge achievment brought by the development of Chinese economy.

On the other hand, Chinese enterprises are large-scale, but not strong.

They must compete with companies of the same industry worldwide. The direct challenge facing China is how to transform from the world-class scale to the global operation.

Chinese enterprises' edging in the Fortune 500 demonstrated that they are gradually reaching the world-class scale.

However, the director of Beijing New Century Academy on Transnational Corporations Wang Zhile said that some Chinese enterprises have indeed surpassed many old brand transnational corporations in size but most of them are not real transnational corporations, let alone world-class corporations.

"These Chinese enterprises lack the capability of covering the global market and absorbing and integrating global resources," Wang said.

The survey result of McKinsey & Company showed that Japanese enterprises almost did not make any progress in the process of globalization from 2006 to 2009. The insufficient level of globalization not only directly affected the profits of Japanese enterprises but also was an important reason for Japanese enterprises to drop out of the world's top 500 enterprises.

Even the Industrial and Commercial Bank, which has the strongest ability to absorb capital in China, has an overseas income accounting for about 3.5 percent of its overall income, let alone the resource and monopoly enterprises, which have a lower level of internationalization.

A professor of accounting at Dongbei University of Finance and Economics Chi Guohua pointed out that the operating revenue reflects the sales volume of a company, so a large company does not means strong.

【1】 【2】



News we recommend:
Luxury brands continue to cash in on China market Rare earth regulation justified Growth to bounce back in H2
Lamborghini sees 20-30% rise in supercar sales Ad campaigns are competing hard in London Major lenders broaden horizons and flex financial muscles
US takes trade remedy actions against China  Chinese prefer foreign brands Mascot maker feels pinch of rising labor costs

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Battlefield echoes

  2. Volcano erupts on New Zealand's North Island

  3. China has entered an era of low consumer prices

  4. Puppets battle it out on London stage

  5. Super disasters that can destroy human society

  6. Collection of funny pictures!

Most Popular

Opinions

  1. Fearing others' rise offers path to doom
  2. Ocean-lapped Japan wary of China's power
  3. Editorial: Reducing grain loss
  4. Who compels Annan to resign?
  5. How can Japan get rid of sense of frustration?
  6. Review on China's economic situation in first half
  7. Gaza Strip biggest loser of insecurity in Sinai
  8. Editorial: Test for Budget Law
  9. Why U.S. veteran go on shooting rampage?
  10. Officials, you are not above the people

What's happening in China

Old views are changing on overseas education

  1. Disabled man compensated for missing train
  2. More mainlanders to tour Taiwan
  3. Typhoon chasers use weibo to help public
  4. Swimmers told to avoid jellyfish after tragedy
  5. Most stores close after crackdown rumors

China Features

  1. Why Hollywood favores China's actresses?
  2. Dongfeng Honda to recall 76,000 CR-Vs
  3. How to protect yourself during heavy rainstorms?
  4. Are synthetic drugs toxic?
  5. Amway vitamin C tablets short in weight

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai