Selected for the 2022 "Fortune Global 500" Chinese Enterprise Ranking

（1） 2022 Top 500 Chinese Enterprises Ranking

In 2022, a total of 145 Chinese companies were shortlisted for the "Fortune Global 500" list, with a total operating revenue of 1154.4741 billion US dollars. Nine of the 145 Chinese enterprises on the list are Taiwan, China enterprises. The number of Chinese companies shortlisted increased by 1.40%, and the total operating income of shortlisted Chinese companies increased by 23.25%. The total operating revenue of Chinese companies on the list is more than 34 times that of 2001, narrowing the gap with the United States.

From the perspective of global companies on the list, the global economy has recovered during the pandemic, and the profit scale of the "Fortune Global 500" reached 3.1 trillion US dollars, the highest level since the release of the list, which is 1.4 times the profit scale in 2019. Due to the low profit base of the previous year, the year-on-year growth rate was 88%, the largest increase since 2004. With the rise of the global economy, the threshold for the "Fortune Global 500" has also been increasing year by year. The number of Chinese companies on the list has maintained a strong growth trend for 19 consecutive years, reaching a new historical high and surpassing the United States for four consecutive years (124 American companies were shortlisted in 2022), leading the world. Behind the leapfrog development of Chinese companies on a global scale is the historic development of the Chinese economy. Although the advantage of the number of Chinese companies on the list continues to expand, the gap between the profitability of Chinese companies and the average level of the "Fortune Global 500" is widening. In 2022, the top 100 global companies in the United States and China accounted for 37.7% and 33.7% of their revenue, respectively, totaling over 70%. China has more of the world's top 100 companies than the United States, but there is still a gap in revenue scale compared to the United States. The average profit of 145 Chinese companies on the list is about 4.1 billion US dollars. Although there has been some improvement compared to themselves, the average profit of the "Fortune Global 500" has risen to 6.2 billion US dollars during the same period. The profits and growth rate of Chinese companies on the list are far lower than those of the United States and the world average. The gap between Chinese companies on the list and them has widened again on the basis of narrowing last year.

From the distribution of listed companies, there are 145 companies from China (including Hong Kong, Macau, and Taiwan) on the list (including 129 from mainland China, 7 from Hong Kong, and 9 from Taiwan), an increase of 2 companies compared to 2021. A total of 14 companies are making their debut on the list, setting a new historical high. Among them, China National Chemical Corporation Limited ranked 31st on the list for the first time, due to its acquisition of the world's largest agricultural group Syngenta for 300 billion yuan, resulting in a significant increase in operating revenue for the fiscal year. From the changes in the ranking of listed companies, the ranking of Chinese listed companies has increased and decreased compared to 2021, with more increases than decreases. Among the 145 listed companies, 85 have improved their rankings, 3 have remained unchanged, and 57 have decreased their rankings. From the profitability of the listed companies, it can be seen that the profitability of Chinese enterprises continues to improve, with 136 out of 145 listed companies achieving profitability (including 43 out of 48 state-owned enterprises managed by the State owned Assets Supervision and Administration Commission). The number of profitable companies has decreased compared to the previous year. The specific situation is shown in Table 1.

表1 2022年“世界500强”中国企业排名

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Table 1 2022 Ranking of Chinese Enterprises in the Fortune Global 500

（2） Regional distribution

1. Regional distribution

This report categorizes and statistics the 2022 shortlisted enterprises according to the five major regions of China (including the eastern, central, western, northeastern, and Hong Kong, Macao, and Taiwan regions), including the number of shortlisted enterprises, the proportion of shortlisted enterprises, total operating revenue, the proportion of total operating revenue, and average operating revenue. The specific situation is shown in Table 2.

表2 2022年“世界500强”中国企业区域分布

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Table 2 Regional Distribution of Chinese Enterprises in the "Fortune Global 500" in 2022

From the overall situation of the shortlisted enterprises in the region, the eastern region still dominates in terms of quantity and operating income. Compared with the previous year, the number of enterprises in the central and western regions has increased, reflecting China's adherence to the regional coordinated development path of leading the development in the eastern region and gradually accelerating the development in the central and western regions. There are a total of 108 enterprises in the eastern region, a decrease of 2 compared to the previous year, with a slight decrease in the proportion of quantity, from 75.52% in 2021 to 74.48%; The number of shortlisted enterprises in the central region has increased from 7 in 2021 to 9; The number of shortlisted enterprises in the western region has also increased, from 7 in 2021 to 10, accounting for 6.90% of the total; The number of shortlisted enterprises in the Northeast region remains unchanged at 2; The number of companies shortlisted in Taiwan increased by 1 compared to the previous year, while Hong Kong and Macau regions decreased by a total of 2 companies this year.

Specifically, in terms of quantity distribution, in 2022, the total number of listed companies in the eastern and northeastern regions was 110, and the proportion of operating income scale decreased from 87.60% in 2009 to 83.86%, a decrease of 3.74 percentage points. The total number of companies listed in the central and western regions is 19, and the proportion of operating income has increased from 2.80% in 2010 to 7.82%, an increase of 5.02 percentage points. The companies listed in mainland China are concentrated in the eastern region. The number of enterprises on the list in the eastern region grew fastest, from 33 in 2009 to 108 in 2022, with the total operating revenue accounting for more than 80%. The industry distribution is diversified, and the financial, foreign trade, Internet and other industries have obvious competitive advantages. The obvious advantages in the number of shortlisted candidates, the proportion of total operating revenue, and industry distribution reflect the prominent location advantage of economic development in the eastern region of China, which has long been the leader of China's economic development. The trend of accelerating development in the central and western regions is gradually emerging. In 2010, the central region achieved a breakthrough of zero companies on the "Fortune Global 500" list. Since 2013, the number has remained relatively stable, with a total of 9 companies listed in 2022; In 2013, the western region achieved a breakthrough of zero companies on the "Fortune Global 500" list, and in 2022, it exceeded double digits, with a total of 10 companies on the list. The companies listed in the two regions are currently distributed in industries such as mining and crude oil production, metal products, engineering and construction. Among them, the number of enterprises in the mining and crude oil production, metal products industries ranks first and second, with 11 and 5 respectively, and 3 in the engineering and construction industries, reflecting the overall resource endowment and location characteristics of the two regions. The Northeast region has the fewest number of companies on the list and has seen little increase. In 2009, China FAW Group Co., Ltd. became the first enterprise in the Northeast region to enter the "Fortune Global 500" list; In 2012, Ansteel Group Co., Ltd. became the second enterprise in the Northeast region to enter the "Fortune Global 500" list.

In terms of total operating revenue, the shortlisted enterprises in the eastern region amounted to 9513 billion US dollars, an increase of 22.56% compared to the previous year. The total operating revenue in the central region has also increased compared to 2021, reaching 477.8 billion US dollars. The total operating revenue in the western region has increased compared to the previous year, reaching 424.5 billion US dollars. The proportion of total operating income in the eastern region has slightly decreased, while the proportion of total operating income in the central and western regions has significantly increased, indicating that the operating conditions of enterprises in both regions have improved compared to the previous year. The total operating revenue and its proportion in the Northeast region and Taiwan region in 2022 have significantly increased compared to the previous year. The total operating revenue in Hong Kong showed no significant change compared to the previous year. In terms of average operating revenue, all regions have achieved growth, with the eastern and northeastern regions increasing by $16.9 billion and $18.4 billion respectively, with the most significant regional growth rates of 23.74% and 27.27%, respectively.

Overall, in 2022, enterprises in the eastern region still have an absolute advantage in terms of the number of shortlisted candidates and total operating revenue. Compared to 2021, the number of shortlisted companies and total operating revenue in the eastern region have remained stable, while Hong Kong has shown a slight increase. Against the backdrop of the global economy being impacted by the pandemic, the business performance of enterprises in the eastern region of China has performed outstandingly in the "Fortune Global 500", which is closely related to the government's response strategy to the pandemic, fiscal policies, and economic stimulus measures; The recovery speed of individual enterprises in the central and western regions is relatively fast, which is related to their lower level compared to the base period of the previous year; Hong Kong enterprises have all seen an increase in operating income compared to the previous year, indicating that the strategic layout of the Guangdong Hong Kong Macao Greater Bay Area, as well as the support policies of the Party and the state for the development of Hong Kong enterprises, have played a significant role in promoting it.

2. Inter provincial distribution

In 2022, a total of 23 provincial-level administrative regions' enterprises were shortlisted for the "Fortune Global 500" ranking, with nearly 60% of the "Fortune Global 500" enterprises gathered in Beijing, Guangdong Province, and Shanghai. First tier cities are the most economically powerful cities in China. Ten provinces in mainland China, including Guizhou, Chongqing, and Henan, did not have any companies shortlisted, while no companies from Hong Kong, Macau, Taiwan, or Macau were shortlisted. This indicates that there is a clear regional clustering and uneven distribution among the "Fortune Global 500" companies. The specific situation is shown in Table 3.

表3 2022年入围企业数量和营业收入省际分布

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Table 3: Number of shortlisted enterprises and inter provincial distribution of operating income in 2022

In 2022, a total of 57 companies from Beijing were included in the "Fortune Global 500" list, an increase of 2 compared to the previous year. The number of companies included accounted for 39.31% of the national total, and the revenue accounted for 52.45% of the national total. In addition to Beijing's favorable investment environment, most of the headquarters of Chinese companies in the "Fortune Global 500" are also located in Beijing, making them more familiar with Beijing's projects. As the capital, Beijing continues its absolute advantage in industry and region. The specific situation is shown in Table 4.

表4 2022年“世界500强”北京企业排名

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Table 4: Ranking of Beijing Enterprises in the 2022 Fortune Global 500

In 2022, a total of 16 companies from Guangdong made it to the "Fortune Global 500" list, accounting for 11.03% of all shortlisted companies, with a revenue share of 9.92%. The number of shortlisted companies and their revenue are second only to Beijing. Under the strategic deployment of the Guangdong Hong Kong Macao Greater Bay Area, Guangdong has first tier cities such as Guangzhou and Shenzhen, which are the forefront of comprehensively deepening reforms and the window for introducing Western economy, culture, and technology. Private enterprises are developed and the economy is active. In the 14th Five Year Plan, Guangdong proposed to fully leverage the role of Guangzhou and Shenzhen in "dual core linkage and flying together", fully support Shenzhen in building a demonstration zone for socialism with Chinese characteristics, and provide equal support for Guangzhou to achieve new vitality and "four new highlights" in old cities, promote the optimization and strengthening of "dual cities", and jointly create the core engine of development for the whole province. The Guangdong enterprises that were shortlisted for the "Fortune Global 500" in 2022 are gathered in four cities: Guangzhou, Shenzhen, Zhuhai, and Foshan. The specific situation is shown in Table 5.

表5 2022年“世界500强”广东企业排名

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Table 5: Ranking of Guangdong Enterprises in the 2022 Fortune Global 500

In 2022, a total of 11 companies from Shanghai were shortlisted, an increase of 2 companies from the previous year, accounting for 7.59% of the total number of shortlisted companies, maintaining a leading advantage nationwide. As the economic center of the Yangtze River Delta region, Shanghai has a strong driving force for economic development, a developed financial system, convenient transportation system, and a strong foundation of talent and technological resources. The shortlisted companies are concentrated in the financial and construction industries. The specific situation is shown in Table 6.

表6 2022年“世界500强”上海企业排名

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Table 6: Ranking of Shanghai Enterprises in the 2022 Fortune Global 500

In 2022, a total of 9 companies from Zhejiang were shortlisted, an increase of 1 from the previous year. The number of shortlisted companies and their operating income accounted for 6.21% and 4.93% of the total number of shortlisted companies, respectively. Zhejiang is not only an economic powerhouse, but also a trading powerhouse, with its total import and export volume of goods consistently leading the country for many years. Among them, Wuchang Zhongda Group Co., Ltd. is a globally renowned trading company; Alibaba Group Holding Co., Ltd., a leader in unicorns and new economy enterprises, is also a company expanding the resilience of Zhejiang's economy, driving the overall development and takeoff of the industrial economy. The specific situation is shown in Table 7.

表7 2022年“世界500强”浙江企业排名

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Table 7 Ranking of Zhejiang Enterprises in the "Fortune Global 500" in 2022

In 2022, six companies from Shandong were shortlisted for the list, an increase of one company from 2021, accounting for 4.14% of the total number of shortlisted companies in China. The operating revenue of Shandong companies was 323.04 billion US dollars, accounting for 2.80% of the total operating revenue of shortlisted companies in China, showing a significant increase compared to the previous year. Shandong is an economically strong province. Since the 14th Five Year Plan, it has adhered to the core position of innovation in the overall modernization construction, focusing on integrated circuits, high-end equipment, new materials, biomedicine, hydrogen energy, modern agriculture and other fields. Every year, it implements about 100 major technological research and development projects, and has broken through a batch of "bottleneck" technologies. Shandong will persist in focusing on the development of the real economy, focusing on building the "top ten" modern advantageous industries with international core competitiveness, accelerating the construction of a modern industrial system dominated by new driving forces, and promoting breakthroughs and advantages in the transformation of old and new driving forces. The specific situation is shown in Table 8.

表8 2022年“世界500强”山东企业排名

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Table 8 Ranking of Shandong Enterprises in the "Fortune Global 500" in 2022

In 2022, a total of 5 companies from Fujian were selected for the "Fortune Global 500" list, accounting for 3.45% of the total, and 3.26% of the total revenue of the selected companies. Fujian is located on the southeast coast of China, with multiple open and navigable ports (mainly serving as trade hubs), and is home to leading economic development cities such as Fuzhou and Xiamen. The specific situation is shown in Table 9.

表9 2022年“世界500强”福建企业排名

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Table 9 Ranking of Fujian Enterprises in the "Fortune Global 500" in 2022

In 2022, three companies from Jiangsu were shortlisted for the list. The proportion of quantity is 2.07%, and the operating revenue of the shortlisted enterprises is 214.556 billion US dollars, accounting for 1.86%. Jiangsu, as the core area of the Yangtze River Delta region, has first tier cities such as Nanjing and Suzhou, where talents gather and the economy is active. The specific situation is shown in Table 10.

表10 2022年“世界500强”江苏企业排名

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Table 10: Ranking of "Fortune Global 500" Jiangsu Enterprises in 2022

In 2022, the number and operating revenue of Shanxi's shortlisted enterprises were 3 and 142.011 billion US dollars, accounting for 2.07% and 1.23% respectively. Shanxi Province is a famous coal resource collection and processing area. In 2022, Shanxi Yangquan Coal Industry Group was renamed Huayang New Material Technology Group. Shanxi has abundant mineral resources and the mining industry is developing rapidly. The specific situation is shown in Table 11.

表11 2022年“世界500强”山西企业排名

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Table 11 Ranking of Shanxi Enterprises in the "Fortune Global 500" in 2022

In 2022, there were 3 companies from Xinjiang on the list, accounting for 2.07%. The operating revenue for 2022 was $141.469 billion, an increase of $49.983 billion from the previous year. The specific situation is shown in Table 12.

表12 2022年“世界500强”新疆企业排名

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Table 12 Ranking of Xinjiang Enterprises in the "Fortune Global 500" in 2022

In 2022, there will be 2 companies from Shaanxi, Hebei, Anhui, and Sichuan on the list. Among them, Shaanxi's shortlisted enterprises are Shaanxi Coal and Chemical Industry Group Co., Ltd. and Shaanxi Yanchang Petroleum (Group) Co., Ltd., with an average operating revenue of 56.556 billion US dollars and a total operating revenue proportion of 0.98%; Hebei's shortlisted companies are Hebei Iron and Steel Group Co., Ltd. and Jingye Group Co., Ltd., with an average operating revenue of 51.516 billion US dollars and a total operating revenue proportion of 0.89%; The Anhui shortlisted companies are Anhui Conch Group Co., Ltd. and Tongling Nonferrous Metals Group Holdings Co., Ltd., with an average operating revenue of 37.606 billion US dollars and a total operating revenue proportion of 0.65%; The Sichuan shortlisted companies are Shudao Investment Group Co., Ltd. and Chengdu Xingcheng Investment Group Co., Ltd., with an average operating revenue of 32.551 billion US dollars and a total operating revenue proportion of 0.56%.

Jilin, Hubei, Jiangxi, Liaoning, Gansu, Hunan, Guangxi, and Yunnan each have one enterprise shortlisted. Among them, the shortlisted enterprise in Jilin is China FAW Group Co., Ltd., with a revenue of 109.405 billion US dollars, accounting for 0.95%; The shortlisted enterprise in Hubei is Dongfeng Motor Group Co., Ltd., with a revenue of 86.122 billion US dollars, accounting for 0.75%; The shortlisted enterprise in Jiangxi is Jiangxi Copper Industry Group Co., Ltd., with a revenue of 70.914 billion US dollars, accounting for 0.61%; Liaoning's shortlisted enterprise is Ansteel Group Co., Ltd., with a revenue of 59.448 billion US dollars, accounting for 0.51%; The shortlisted enterprise in Gansu is Jinchuan Group Co., Ltd., with a revenue of 40.958 billion US dollars, accounting for 0.35%; The shortlisted enterprise in Hunan is Hunan Iron and Steel Group Co., Ltd., with a revenue of 34.061 billion US dollars, accounting for 0.30%; The shortlisted enterprise in Guangxi is Guangxi Investment Group Co., Ltd., with a revenue of 31.962 billion US dollars, accounting for 0.28%; The shortlisted enterprise in Yunnan Province is Yunnan Investment Holding Group Co., Ltd., with a revenue of 31.884 billion US dollars, accounting for 0.28%.

In addition, 9 companies from Taiwan were shortlisted, accounting for 6.21% of the total number; The operating revenue was 5320.31 billion US dollars, accounting for 4.61%. The specific situation is shown in Table 13.

表13 2022年“世界500强”台湾企业排名

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Table 13: Ranking of Taiwan Enterprises in the 2022 Fortune Global 500

Seven companies from Hong Kong were shortlisted, accounting for 4.83% of the total number; The operating revenue of the shortlisted enterprises was 428.598 billion US dollars, slightly lower than the previous year, at 3.71%. The specific situation is shown in Table 14.

表14 2022年“世界500强”香港企业排名

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Table 14 2022 "Fortune Global 500" Hong Kong Enterprise Ranking

（3） Industry Distribution

In 2022, the shortlisted enterprises in China are mainly distributed in the eleven major industries. The specific situation is shown in Table 15.

表15 2022年入围企业数量和营业收入行业分布

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Table 15: Number of shortlisted enterprises and industry distribution of operating income in 2022

In 2022, there were 43 manufacturing companies listed in the "Fortune Global 500", an increase from the previous year, accounting for 29.65%; The total operating revenue was 2786.387 billion US dollars, accounting for 24.14%, with an average operating revenue of 64.8 billion US dollars, slightly lower than the national average of 79.619 billion US dollars in various industries. In 2022, 29 industries in China entered the top three in terms of industry revenue, with 19 industries including engineering and construction, metal products, mining, and crude oil production ranking first. The United States has 41 industries ranking in the top three, and 32 industries such as Internet services, health care and comprehensive commerce rank first. Japan's top three industries have decreased from 22 in 2011 to 11 in 2022. This indicates that the "Fortune Global 500" manufacturing companies in China have a certain quantity and scale, but there is a considerable gap in operating income, profits, and other aspects among the shortlisted manufacturing companies in China. This also reflects the current situation of our manufacturing industry being large but not strong, and there is still great room for improvement in optimizing and enforcing mandatory manufacturing in the future.

In 2022, Chinese enterprises that rank first in the sub sectors of real estate, textiles, engineering and construction, transportation and logistics, metal products, network and communication equipment will account for over 60% of the same industry's revenue in the "Fortune Global 500". In 2022, the average operating revenue of Chinese Internet enterprises on the list led by ATJ (Alibaba, Tencent, JD) was 122.4 billion US dollars, 4.3 times that of 2017, reflecting that China stood at the forefront of the new wave of information revolution, fully grasped the new opportunity of "curve overtaking", and achieved rapid development in the field of network economy. The specific situation is shown in Figure 1.

Figure 1: The revenue of Chinese enterprises ranking first in the segmented industry and their proportion to the revenue of the same industry in the "Fortune Global 500"

The number of shortlisted enterprises in the financial industry has reached 24, accounting for 16.55%, ranking second in the industry in terms of the number of shortlisted enterprises. The total operating revenue of the shortlisted enterprises in the financial industry reached 2.067951 trillion US dollars, accounting for 17.91%. The average operating revenue of the shortlisted enterprises is 86.165 billion US dollars, far higher than the national average level. The status and influence of Chinese financial industry enterprises in the global financial field continue to increase. From 2010 to 2022, the proportion of total operating income of Chinese financial enterprises on the list continued to rise from 6.50% to 17.91%; The proportion of net profit increased from the lowest 24.1% to the highest 39.4%. In 2022, the highest ranking of Chinese financial enterprises on the list (Industrial and Commercial Bank of China Limited) was 22nd, only 8 places behind the industry's highest ranking (Berkshire Hathaway) at 14th. With the country advocating the development of financial service entities and actively guiding funds to move from virtual to real, the profit level of the financial industry has been declining year by year. In 2022, the proportion was 48.1%, a decrease of 12.1 percentage points from 2017. The decision-making and deployment to address the problem of "shifting from reality to virtuality" and boost the real economy have achieved significant results.

In terms of comprehensive aspects, the number of shortlisted enterprises has reached 23, accounting for 15.86%, second only to the manufacturing and financial industries in terms of quantity. In the context of comprehensively deepening reform, many enterprises urgently need to undergo diversified transformation and upgrading, and begin to expand their operations into multiple industries, such as industrial investment, financial investment, service leasing, and real estate. In 2022, the total operating revenue of comprehensive enterprises was 1661.57 billion US dollars, accounting for 14.39%, with an average operating revenue of 72.242 billion US dollars, lower than the national average level of various industries.

There are a total of 15 shortlisted enterprises in the construction industry, accounting for 10.34% of the total. The total operating revenue of the shortlisted enterprises in the construction industry was $11807.52 billion, accounting for 10.23%. In terms of average operating revenue, the construction industry has seen a significant increase compared to the previous year, reaching 78.717 billion US dollars. Since 2015, the number of construction enterprises in China has been continuously increasing, rising from 1 to 15; The proportion of total operating revenue has slightly decreased. In 2022, Su Shang Construction Group Co., Ltd. was newly listed as one construction enterprise, ranking 299th. The real estate companies on the list are all from China. But in 2022, there were only 5 real estate companies in China, which is 3 fewer than the previous year. Compared to the previous year, the average operating revenue of these real estate companies has increased, but the average profit has decreased. The 15 construction companies on the "Fortune Global 500" list are all Chinese enterprises, and the unique feature of China's construction industry is particularly prominent in the list.

The number of mining companies shortlisted has reached 14, accounting for 9.66%, ranking fifth in the industry in terms of the number of shortlisted companies. The total operating revenue of the mining industry's shortlisted enterprises was 1457.209 billion US dollars, accounting for 12.62%. The average operating revenue of the shortlisted enterprises is 104.086 billion US dollars, far higher than the national average level.

The number of shortlisted enterprises in the electricity, heat, gas, and water production and supply industries has reached 8, accounting for 5.52%, with a total operating revenue of 899.968 billion US dollars, accounting for 7.80%. The average operating revenue of the shortlisted companies is 112.496 billion US dollars, still the industry with the highest average operating revenue. In 2022, Chinese energy companies have been actively implementing the national policy of reducing social energy costs, and their profit margins have gradually narrowed due to the increasingly strict energy price control. The efficiency level of Chinese energy companies on the list is relatively low, and the net profit margin of State Grid Corporation of China has decreased from 2.1% in 2019 to 1.5% in 2022; The net profit margin of China Southern Power Grid Co., Ltd. has decreased from 2.2% in 2019 to 1.3% in 2022. The structure of energy enterprises is transitioning towards green and low-carbon.

There are a total of 11 shortlisted enterprises in the transportation, warehousing, postal, wholesale, and retail industries. The former accounted for 4.14% of the shortlisted enterprises, with a total operating revenue of 598.355 billion US dollars, accounting for 5.18%. The latter has 5 shortlisted companies, accounting for 3.45%, with a total operating revenue of 436.282 billion US dollars, accounting for 3.78%, and an average operating revenue of 87.256 billion US dollars, higher than the national average level.

There are a total of 4 shortlisted enterprises in the information transmission, software, and information technology services industry, accounting for 2.76%, with a total operating revenue of 353.173 billion US dollars, accounting for 3.06%. The average operating revenue of the shortlisted enterprises is 88.293 billion US dollars, higher than the national average level. In 2022, there are four Internet enterprises (Internet service and retail industries disclosed according to the list) on the list, namely JD Group Co., Ltd., Alibaba Group Holdings Co., Ltd., Tencent Holdings Co., Ltd. and Xiaomi Group, accounting for more than half of the total Internet enterprises on the list. Since 2016, China's Internet enterprises have developed strongly in the list. In 2022, four companies ranked 46th, 55th, 121st, and 266th respectively, an increase of 13, 8, 10, and 72 places compared to 2021. Among them, Xiaomi Group has the highest revenue growth rate at 42.8%; The company with the highest net profit margin is Tencent Holdings Limited, at 33.9%.

In addition, the number of medical and agricultural enterprises shortlisted is relatively small, with a total of 3, accounting for a total of 2.07%; The total operating revenue and its proportion are not high; The average operating income is much lower than the national average level.

Compared with the international market, in 2022, the "Fortune Global 500" companies are distributed in 57 industries, while Chinese companies on the list are distributed in 32 industries. There are still 25 industries without Chinese companies on the list. Compared with the 48 industries where American companies on the list are distributed during the same period, there is still a gap of 16 industries in China. In 2022, out of the 48 industries listed in the United States, 32 industries ranked first; Among the 32 industries listed in China, 19 industries rank first, with a gap of 13 industries compared to the United States. China has not yet entered the top 13 industries in terms of industry ranking, with 10 industries ranking in the top three in terms of revenue, and 3 industries still outside the third place. The 13 industries in which Chinese enterprises have not yet reached the top ranking in terms of operating income are distributed in the fields of industry, commercial and retail services, healthcare, electronic manufacturing, information software and technology services, and finance. China has not yet entered the top three industries in terms of revenue, namely professional retail, property and accident insurance (equity), and food production. Among the 19 industries ranked first by Chinese enterprises, 10 industries including real estate, textiles, engineering and construction, transportation and logistics, metal products, network and communication equipment, public facilities, shipping, chemicals, aerospace and defense have significant scale advantages, with operating income accounting for over 50%. Among the 13 industries where Chinese companies did not reach the top ranking, the gap between the revenue of pharmaceutical, diversified finance, and mail, parcel, and cargo packaging and transportation industries and the world's top is relatively small; The operating income of computer and office equipment, wholesale (health care), property and accident insurance (stock), Internet services and retail and other industries lags far behind the world's first. The specific situation is shown in Figure 2.

Figure 2 Comparison of revenue gap between industries in China that have not yet reached world number one and those that are world number one

（4） Distribution of ownership structure

This report categorizes and summarizes the shortlisted enterprises according to their ownership structure. In terms of the number and proportion of shortlisted companies, a total of 32 private enterprises/others were shortlisted in 2022, accounting for 22.07% of the total number of shortlisted companies that year; A total of 99 state-owned enterprises were shortlisted, accounting for 68.28% of the total number of shortlisted enterprises; There are a total of 14 companies that have been shortlisted, including Taiwan Hong Kong Macao sole proprietorship, Taiwan Hong Kong Macao joint venture, and foreign sole proprietorship. In terms of total operating revenue and its proportion, state-owned enterprises lead the other two types with $8715.084 billion, accounting for 75.49% of the total operating revenue. In terms of average operating revenue, private enterprises/others accounted for 65.801 billion US dollars, while state-owned enterprises accounted for 88.031 billion US dollars. There is still a significant difference between the two, but the difference is gradually narrowing year by year. The specific situation is shown in Table 16.

表16 2022年入围企业数量和营业收入所有制结构分布

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Table 16: Number of shortlisted enterprises and distribution of ownership structure of operating income in 2022

Among state-owned enterprises, there are 59 central enterprises listed in 2022, accounting for nearly half of the total number of listed enterprises in China and ranking high, showing a clear leading trend. Among the listed central enterprises, 48 are managed by the State owned Assets Supervision and Administration Commission, and 11 are managed by the Ministry of Finance. The total number of listed enterprises has decreased by 2 [China Aviation Fuel Group Co., Ltd. and Taiwan CPC Co., Ltd. are newly listed, while China Resources Land Co., Ltd., China National Chemical Corporation, China General Electric Technology (Group) Holding Co., Ltd., and China Reinsurance (Group) Co., Ltd. are removed from the list]. The top 10 and top 10 profitable enterprises in China's "Fortune Global 500" rankings are both central enterprises; Among the top 100 domestic (mainland) enterprises, 26 are central enterprises. Among local state-owned enterprises, Shanghai Automotive Group Co., Ltd. ranks 68th with the highest ranking on the list in China; The lowest is Guangzhou Pharmaceutical Group Co., Ltd., ranking 467th. The average ranking of local state-owned enterprises on the list has slightly decreased compared to the previous year. The top five companies with the largest increase in ranking are Zhejiang Transportation Investment Group Co., Ltd., Guangzhou Construction Group Co., Ltd., Shougang Group Co., Ltd., Zijin Mining Group Co., Ltd., and Xiamen Construction and Development Group Co., Ltd., which have increased by 131, 100, 83, 79, and 71 places respectively compared to the previous year. In 2022, 13 local state-owned enterprises experienced a decline in ranking, with an average ranking drop of 20 places. The operating revenue of local state-owned enterprises increased by 22.28% year-on-year, with an average profit of 125.99 billion US dollars, an increase of 6.60% compared to the previous year.

Among private enterprises, in 2022, there were 36 mainland Chinese private enterprises on the list, with 4 newly listed companies. Among them, there are 6 companies ranked in the top 100, 8 companies ranked 101-200, 9 companies ranked 201-300, 4 companies ranked 301-400, and 9 companies ranked 401-500. The top three are Ping An Insurance (Group) Co., Ltd., JD Group Co., Ltd., and Alibaba Group Holding Co., Ltd., ranking 25th, 46th, and 55th respectively. Suzhou Construction Group Co., Ltd. (299th), BYD Co., Ltd. (436th), SF Holding Co., Ltd. (441st), and Shanghai Delong Iron and Steel Group Co., Ltd. (469th) were listed.

Selected for the Research on Typical Chinese Enterprises in 2022

（1） Research on Typical Enterprises Based on Regional Dimensions

1. Eastern Region - National Energy Investment Group Co., Ltd

National Energy Investment Group Co., Ltd. is a key backbone enterprise of the national vertical pipeline state-owned enterprise and the largest state-owned capital operated enterprise restructured as a key company.

In terms of business layout, the company mainly focuses on coal mining and power generation, while coordinating with other fields such as heating, coal to oil conversion, technology construction, transportation, and industrial finance. In 2022, the company achieved a coal production of 600 million tons, a year-on-year increase of 5.4%; Coal sales reached 790 million tons, a year-on-year increase of 2.6%; The power generation reached 1.1 trillion kilowatt hours, a year-on-year increase of 3.3%; Heating capacity of 500 million GJ. At the same time, the company's operating revenue continues to grow, leading the national energy and power generation industry. Its operating revenue has grown significantly in 2022, reaching 107.95 billion US dollars, an increase of 32.68% compared to the previous year. Although the company's current power generation is mainly based on thermal power generation, following the trend of energy transformation, wind and solar power generation will have a good development trend. The ranking and performance distribution are shown in Figure 3.

Figure 3 Performance Ranking of Typical Enterprises in the Eastern Region from 2018 to 2022

2. Central region - Lu'an Chemical Group Co., Ltd

Lu'an Chemical Group Co., Ltd. was officially established in July 2020 with the goal of thoroughly implementing General Secretary Xi Jinping's directive to "take the lead in forging a new path in transformation and development". It is a provincial key state-owned enterprise established to promote specialized strategic restructuring.

In terms of business layout, as an enterprise with dual main businesses of coal and chemical industry, the group's main business includes the production and processing sales of chemicals, the production of chemical materials, and the mining, processing, and sales of mineral resources. It insists on building a modern industrial system characterized by "strong coal, optimization, and innovation", and deeply promotes the integrated development of coal and chemical industry. The operating revenue in 2022 was 34.043 billion US dollars, an increase of 45.30% compared to the previous year. It did not make the list in 2021, and the operating revenue in 2020 was 26.078 billion US dollars. The group ranks 21st among Chinese energy enterprises and 2nd among Shanxi enterprises in 2022.

3. Western Region - Xinjiang Zhongtai (Group) Co., Ltd

Xinjiang Zhongtai (Group) Co., Ltd. was established in 2001 as a state-owned sole proprietorship. Currently, it is a key supported advantageous resource conversion enterprise in Xinjiang Uygur Autonomous Region and will be listed for the first time in 2022.

In terms of business layout, the company currently has 46 wholly-owned and controlling subsidiaries, including Xinjiang Zhongtai Import and Export Trading Co., Ltd. and Zhongtai International Development (Hong Kong) Co., Ltd., as well as 49 joint-stock companies. The company's main products include polyvinyl chloride resin, ion exchange membrane caustic soda, viscose fiber, viscose yarn, etc. In addition to supplying the local market, the products are also exported to other provinces in China and to regions such as South America, Africa, and Southeast Asia, with high market awareness and good reputation. In 2022, the company completed an investment of 6.9 billion yuan in 17 ongoing projects, including the Jinhui Zhaofeng 750000 tons/year calcium carbide project and the Meike Chemical Phase IV 100000 tons/year BDO project, which were successively completed and put into operation. The Jinhui Zhaofeng 200000 kW photovoltaic source grid storage project is progressing in an orderly manner. In 2022, the company's operating income and net cash inflow remained relatively large, with a total operating income of 32.89 billion yuan, indicating a significant scale; Affected by the increase in tax and fee refunds and collection efforts, the net cash inflow was 5.325 billion yuan, a year-on-year increase of 19.45%.

4. Hong Kong, Macau, and Taiwan - AIA Insurance Holdings Limited

AIA Insurance Holdings Limited was established in 1931 and later listed on the Main Board of the Hong Kong Stock Exchange Limited. AIA Insurance Holdings Limited and its subsidiaries are the world's largest independent listed life insurance group in the Pan Asian region.

In terms of business layout, AIA Insurance Holdings Limited's main business is to provide comprehensive services to customers, including life insurance, accidental medical insurance, and pension plans, serving individuals and groups. AIA Group Holdings Limited is the insurance company in Hong Kong with the largest number of policies, and it has wholly-owned operating subsidiaries or branches in 18 markets around the world. In the third quarter of 2022, the comprehensive solvency adequacy ratio was 379.76%, the core solvency adequacy ratio was 228.01%, and the risk rating was AA. And free surplus, as capital that can be freely used, is the value created by insurance companies that is equivalent to cash. The company's free surplus reached a historical high of $20.6 billion by the end of the first half of 2022. And in the past five years, there has been a significant amount of free surplus generated each year, demonstrating a strong ability to create value. Based on ample free surplus, the company announced in the first half of 2022 to repurchase $10 billion worth of stocks over a period of three years, with the expectation of maintaining its top position in the insurance industry with a 35% dividend payout ratio. The ranking and performance distribution are shown in Figure 4.

Figure 4 Performance Ranking of Typical Enterprises in Hong Kong, Macao, and Taiwan from 2018 to 2022

（2） Research on Typical Enterprises Based on Industry Dimensions

1. Manufacturing Industry - China Pharmaceutical Group Co., Ltd

China National Pharmaceutical Group Co., Ltd. is a central enterprise directly managed by the State owned Assets Supervision and Administration Commission of the State Council, with life and health as its main business. It has a full industry chain of technology research and development, medical health, logistics distribution, retail chain, industrial manufacturing, engineering technology, professional exhibitions, international operations, and financial investment in the field of health. It is a leader in China's pharmaceutical industry.

In 2022, the group became the only pharmaceutical company in the world to enter the "World Top 100" and the only one with revenue exceeding 100 billion US dollars. It is also the only developing country enterprise to enter the top 10 global pharmaceutical companies. From being listed in the "World Top 500" for the first time in 2013 to advancing to the top 100 in 2022, the group's ranking has continued to rise for 10 consecutive years. Over the past 10 years, the group's operating revenue has increased from 28.15 billion US dollars to 108.779 billion US dollars. The group has subsidiaries or offices in relevant countries (regions) such as Hong Kong, France, the United States, South America, and Africa. The ranking and performance distribution are shown in Figure 5.

Figure 5 Performance Ranking of Typical Manufacturing Enterprises from 2018 to 2022

2. Comprehensive - China Poly Group Co., Ltd

The predecessor of China Poly Group Co., Ltd. was Poly Technology Co., Ltd., established in February 1983. The group is a large central enterprise managed by the State owned Assets Supervision and Administration Commission of the State Council, currently ranking 78th among all central enterprises in China.

In terms of business layout, its main business is state-owned equity operation and management, physical investment and capital operation, and organizing and coordinating the relevant production and operation activities of the group's affiliated enterprises for the company's development. It has now formed a "five wheel drive" development pattern with military and civilian goods trade, real estate development, cultural and artistic operation, mineral resources investment and development, and civil explosive technology as the core. As of the end of 2022, the total assets of the group amounted to 247.685 billion US dollars, with over 2000 wholly-owned and controlled subsidiaries, more than 120000 employees, and 6 listed companies both domestically and internationally. The group's business covers all aspects of people's clothing, food, housing, transportation, and spiritual and cultural life. It has been listed in the "Fortune Global 500" for 8 consecutive years and is undoubtedly a leading enterprise in the comprehensive industry. The ranking and performance distribution are shown in Figure 6.

Figure 6 Performance Ranking of Comprehensive Typical Enterprises from 2018 to 2022

3. Mining Industry - Zijin Mining Group Co., Ltd

Zijin Mining Group Co., Ltd. is a large multinational mining group engaged in the exploration, development, engineering design, and technical application research of copper, gold, zinc, lithium and other metal mineral resources worldwide.

In terms of business layout, the company has important mining investment projects in 17 provinces (regions, municipalities) across the country and 15 countries (regions) overseas, with key indicators leading in China and ranking among the top 10 globally. In 2022, the operating revenue was 34.898 billion US dollars. The company rapidly promotes internationalization through the construction of the "the Belt and Road". By 2022, the company's overseas mineral resources reserves, output and profits of major mineral products have surpassed those of China.

4. Construction Industry - Vanke Co., Ltd

Vanke Enterprise Co., Ltd. was established in 1984, with Shenzhen Metro Group as its largest shareholder. The company's business focuses on the three most dynamic economic circles in China and key cities in the central and western regions.

In terms of business layout, according to the company's 2022 annual report, the annual revenue reached 70.198 billion US dollars, a year-on-year increase of 15.57%. The company has strong financial advantages in the industry, mainly reflected in its abundant monetary funds, high cash short debt ratio, low net debt ratio, leading contract liabilities in the industry, and maintaining a "green" level of the three red line indicators. It has a good credit rating in the industry. As of the end of 2022, the company continues to maintain a "green profile", with operating cash flow being positive for 14 consecutive years and a net debt ratio of only 43.7%, which is at a low level in the industry. In 2022, the company's development business achieved a contracted sales area of 26.3 million square meters, a contracted sales amount of 416.97 billion yuan, a settlement area of 34.014 million square meters, a year-on-year increase of 9.1%, and a settlement income of 444.4 billion yuan, a year-on-year increase of 10.5%. In the past two years, the real estate industry market has been turbulent, and against the backdrop of extreme volatility, the company has achieved stable revenue and net profit, which also proves its strength. The ranking and performance distribution are shown in Figure 7.

Figure 7 Performance Ranking of Typical Construction Enterprises from 2018 to 2022

5. Finance - PICC

The People's Insurance Corporation of China, founded on October 1, 1949, is a large central enterprise under the management of the State owned Assets Supervision and Administration Commission of the State Council.

In terms of business layout, the group has more than 10 professional subsidiaries, with business scope covering property insurance, life insurance, reinsurance, asset management, real estate investment, alternative investment, and financial technology, etc., which have profound influence both domestically and internationally. In 2022, the group achieved a revenue of 92.182 billion US dollars, a year-on-year increase of 9.36%, ranking 110th on the list. The ranking and performance distribution are shown in Figure 8.

Figure 8 Performance Ranking of Typical Financial Enterprises from 2018 to 2022

（3） Research on Typical Enterprises Based on the Dimension of Ownership Structure

1. State owned enterprise - China National Chemical Corporation Limited

China National Chemical Corporation (ChemChina) Holdings Limited was jointly restructured by China National Chemical Corporation (ChemChina) and China National Chemical Corporation (ChemChina), and was officially established on May 8, 2021. It is an important state-owned backbone enterprise supervised by the State owned Assets Supervision and Administration Commission of the State Council.

In terms of business layout, the company's business covers eight major fields including life sciences, materials science, petrochemicals, environmental science, rubber tires, mechanical equipment, urban operations, and industrial finance. It is a globally leading comprehensive chemical enterprise. 2022 is the first complete operating year after the restructuring of the two industries, with deep integration of the company's business and overall stable operation. The company achieved a revenue of 172.26 billion US dollars, ranking 31st on the list. At the same time, the return on equity increased by 0.9 percentage points year-on-year, and R&D investment increased by 10.5% year-on-year, laying a solid foundation for the company's stable and far-reaching development, and making positive contributions to stabilizing the overall economy. As a state-owned enterprise, we will continue to play an important role in ensuring food security, fulfill our responsibility of ensuring supply and stable prices, and make outstanding contributions to market stability and sufficient supply.

2. Private enterprise - Qingshan Holdings Group Co., Ltd

Qingshan Holdings Group Co., Ltd. was founded in the 1980s and registered as a group company in June 2003. It is the fourth ranked private enterprise in Zhejiang Province and currently the largest stainless steel producer in China. Its two main businesses are stainless steel and new energy.

In terms of business layout, we are committed to creating high-quality, low-cost, energy-saving and environmentally friendly stainless steel and new energy products. The enterprise mainly produces stainless steel, steel plates, steel and other products, which are widely used in chemical machinery, automobiles, shipbuilding, petroleum and other fields. At the same time, enterprises produce raw materials and batteries for the new energy sector, supplying them to the new energy industry. Its industries cover various fields such as manufacturing, sales, warehousing, and import and export. In 2014, the company's stainless steel production capacity ranked first in the world. Its operating revenue was 54.574 billion US dollars in 2022, showing a continuous growth trend and ranking 238th on the list, making it a well deserved new star in the private sector. The ranking and performance distribution are shown in Figure 9.

Figure 9 Performance Ranking of Typical Private Enterprises from 2019 to 2022

3. Taiwan, Hong Kong, and Macau legal entities sole proprietorship - Wistron Group

Wistron Group's main business scope is information and communication technology products. It was established in 2001 and listed on the Taiwan Stock Exchange on August 19, 2003. The enterprise is one of the largest suppliers of information and communication technology products in the world. Its headquarters are located in Taiwan, China, China. In addition, it has strongholds in North America and Europe.

In terms of business layout, the group has strong R&D and technological innovation capabilities, providing customers with diversified communication products and high value-added products. Through close integration with software services, it provides technical service platforms and solutions for relevant customers. In 2022, the revenue reached 30.867 billion US dollars, ranking 462nd on the list. In terms of performance across various product lines, the growth of servers, industrial computers, and AI computing businesses is more prominent, while the rest of the product lines remain flat or slightly decline. The ranking and performance distribution are shown in Figure 10.

Figure 10: Performance Ranking of Typical Taiwan Hong Kong Macao Sole Proprietorship Enterprises from 2018 to 2022

Dynamic Changes Analysis of Chinese Enterprises in the 2022 Fortune Global 500

（1） Analysis of overall changes in shortlisted enterprises

Figure 11 presents the overall changes in the number of Chinese companies shortlisted for the "Fortune Global 500" from 2017 to 2022, including their total revenue.

Figure 11: Chinese companies shortlisted for the "Fortune Global 500" from 2017 to 2022

The number of Chinese companies shortlisted for the "Fortune Global 500" in 2022 is 145, an increase of 2 compared to the previous year. Looking back at the number of companies shortlisted for the "Fortune Global 500" since 2017, it is found that it has been steadily increasing, from 115 to 145. This indicates that the proportion of Chinese companies on the "Fortune Global 500" list is continuously increasing, and their distribution is relatively balanced in each ranking segment of the "Fortune Global 500", with the scale and strength indicators of operating income ranking high. The number of Chinese companies on the list has surpassed that of the United States for three consecutive years. Among the 145 listed companies, 85 have improved their rankings, 3 have remained unchanged, and 57 have decreased their rankings. Among the five companies with the largest increase in ranking (over 70 places), two belong to the comprehensive industry (Xiamen Jianfa Group Co., Ltd. and Shougang Group Co., Ltd.), one belongs to the construction industry (Guangzhou Construction Group Co., Ltd.), one belongs to the mining industry (Zijin Mining Group Co., Ltd.), and one belongs to the transportation, warehousing, and postal industry (Zhejiang Transportation Investment Group Co., Ltd.). The two companies with the largest decline in ranking (more than 30 places) are Beijing Automotive Group Co., Ltd. and Anhui Conch Group Co., Ltd. Both are local state-owned enterprises and manufacturing enterprises.

From the newly listed companies in 2022, 10 are state-owned enterprises, accounting for more than half. This shows that in an unstable global economic development environment, state-owned enterprises with strong qualifications have slightly stronger risk resistance capabilities than private enterprises. From the perspective of the industry, there are four companies in the construction and comprehensive industries, among which the construction industry enterprises are mostly national infrastructure construction enterprises, indicating that the country is vigorously promoting and supporting infrastructure construction to restore the national economy. In addition, the emergence of steel and chemical industry groups may be related to the high steel prices in the bulk commodity market in 2022. The situation of newly listed companies in 2022 is shown in Table 17.

表17 2022年新上榜企业情况

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Table 17: New Companies on the List in 2022

From the situation of companies that have been delisted, there are 5 comprehensive enterprises that have withdrawn, among which China National Chemical Corporation Limited and China National Chemical Corporation Limited withdrew due to their merger into China National Chemical Corporation Holdings Limited; Three construction companies have withdrawn from the "Fortune Global 500", among which China Evergrande Group directly withdrew from the "Fortune Global 500" from the 122nd place. This is related to the recent downturn in the real estate industry, the gradual decline of the industry boom, and the fact that real estate companies maintain their operations with a high leverage and high-risk business model. From a regional distribution perspective, most of the companies that have been removed from the list are from the eastern region. The enterprises in the eastern region have a large base and rely more on foreign trade, making them more vulnerable to the impact of the epidemic. The specific situation is shown in Table 18.

表18 2022年退榜企业情况

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Table 18: Status of Companies Withdrawn in 2022

（2） Analysis of Changes in Regional Distribution

Figure 12 presents the regional changes of Chinese companies that have been shortlisted for the "Fortune Global 500" from 2017 to 2022. Specifically, it includes the distribution of the number of enterprises in the eastern, central, western, northeastern regions, as well as Hong Kong and Taiwan.

Figure 12 Regional Changes of Chinese Enterprises shortlisted for the "Fortune Global 500" from 2017 to 2022

According to the list of shortlisted companies from 2017 to 2022, it can be seen that the companies on the list are mainly distributed in the eastern region, with significantly lower numbers in the central and western regions. The phenomenon of uneven regional economic development is still evident, which is related to the degree of support from national policies and the accumulation of economic development in each region in the early stage. Especially, private enterprises are mainly concentrated in Jiangsu and Zhejiang in the Yangtze River Delta region, and Guangdong and Fujian in the Pearl River Delta region. In 2022, the number of shortlisted enterprises in the eastern region reached 108, a decrease of 2 from the previous year, 9 in the central region, an increase of 2 from the previous year, and 10 in the western region, an increase of 3 from the previous year.

From 2017 to 2022, there was an overall growth trend in various regions, but the number of shortlisted enterprises decreased in some years, indicating that competition among enterprises in different regions is relatively fierce. Among all regions, the eastern region has the highest growth rate. The number of companies shortlisted in the eastern region increased by 16, the number of companies shortlisted in the western region increased by 7, and only one company was shortlisted in the northeastern region.

In 2022, the total number of listed companies in the eastern and northeastern regions was 110, and the proportion of operating income decreased from 87.6% in 2009 to 83.9%, a decrease of 3.7 percentage points. In 2022, a total of 19 companies from the central and western regions made the list, with their revenue accounting for 7.8%, an increase of 5.0 percentage points from 2.8% in 2010. The specific situation is shown in Figure 13.

Figure 13 Changes in the proportion of operating revenue in the eastern and northeastern, central and western regions of Chinese companies on the list from 2009 to 2022

（3） Analysis of changes in industry distribution

Figure 14 shows the industry changes of Chinese companies that were selected for the "Fortune Global 500" from 2017 to 2022.

Figure 14: Industry Changes of Chinese Enterprises shortlisted for the "Fortune Global 500" from 2017 to 2022

The "Fortune Global 500" list is a unique window into global industrial structural changes. From 2017 to 2022, industries with a significant increase in the number of Fortune Global 500 companies include mining and crude oil production, metal products, and food production. From 2017 to 2022, Chinese companies on the list are increasingly diversified in their industries, with industry advantages in revenue from manufacturing, finance, mining, and other fields.

Among the shortlisted companies in 2022, the manufacturing, finance, construction, and mining industries all reached their peak numbers from 2017 to 2022, with 43, 24, 15, and 14 companies respectively; The wholesale and retail industries, as well as the quantity of agriculture, have decreased. This reflects that the competitiveness of China's shortlisted enterprises in advantageous industries such as manufacturing and finance has further expanded, while the competitiveness of traditional agriculture has decreased.

（4） Analysis of changes in ownership structure distribution

Table 19 shows the changes in ownership structure of the shortlisted enterprises from 2017 to 2022, including the distribution of the number and proportion of state-owned enterprises, private enterprises/others, Taiwan Hong Kong Macao sole proprietorships/Taiwan Hong Kong Macao domestic joint ventures/foreign sole proprietorships, etc.

表19 2017～2022年入围“世界500强”中国企业所有制结构变动

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Table 19 Ownership Structure Changes of Chinese Enterprises shortlisted for the "Fortune Global 500" from 2017 to 2022

In the short term, there has been a significant increase in the number and proportion of private enterprises/other types of enterprises solely owned by Taiwan, Hong Kong, and Macao legal persons/joint ventures between Taiwan, Hong Kong, and Macao and domestic/foreign legal persons in recent years. This is related to China's construction of a gradually open pattern, further market-oriented reforms, and the successive release of policies to stimulate the vitality of market entities. In the long run, the overall number of shortlisted enterprises is steadily increasing. Before 2017, the growth rate of the shortlisted number of state-owned enterprises was faster than that of private enterprises/others. However, after 2017, the positions of the two have reversed, and the growth rate of the shortlisted number of private enterprises/others is slightly faster than that of state-owned enterprises. This is mainly due to the Party's proposal in the 19th National Congress report: "We need to improve the management system of various state-owned assets, reform the authorized operation system of state-owned capital, accelerate the optimization of the layout, structural adjustment, and strategic restructuring of the state-owned economy... fully implement the negative list system for market access, clean up and abolish various regulations and practices that hinder the unified market and fair competition, support the development of private enterprises, and stimulate the vitality of various market entities

In 2008, Lenovo Group Co., Ltd. became the first private enterprise in China to be shortlisted, ranking 499th; In 2012, six private enterprises were shortlisted, with the highest ranking being 242nd; In 2015, private enterprises entered the top 100 for the first time; In 2021, Ping An Insurance (Group) Co., Ltd. of China ranked 16th, which is the highest ranking among private enterprises so far. The number of state-owned enterprises on the list has been on the rise since 1996, while private enterprises have rapidly emerged since 2008. State owned enterprises, especially central enterprises directly under the jurisdiction of departments such as the State owned Assets Supervision and Administration Commission and the Ministry of Finance, have gathered high-quality production factor resources in the industry and have obvious advantages in fields such as energy, telecommunications, and aviation. In the past few years, the number of state-owned enterprises on the list has been continuously increasing, ranking higher and higher, and involving more and more industries, playing a role as the backbone of the national economy. In 2022, the number of state-owned enterprises shortlisted reached its peak in recent years (99), while the number of private enterprises/other and Taiwan Hong Kong Macao legal person sole proprietorships/Taiwan Hong Kong Macao joint ventures/foreign legal person sole proprietorships also reached a relatively high level, with 32 and 14 shortlisted, respectively. In 2016, there were only 81 state-owned enterprises, while there were 12 and 11 private enterprises/other and Taiwan Hong Kong Macao sole proprietorships/Taiwan Hong Kong Macao joint ventures/foreign sole proprietorships, respectively.

From 2010 to 2022, although the proportion of operating revenue of Chinese central enterprises on the list has decreased from 91.9% to 59.8%, they have always been the backbone of Chinese companies on the "Fortune Global 500" list. In the "World's Top 100" list, Chinese companies listed before 2013 were all central enterprises. After 2013, with the continuous rise of local state-owned and private enterprises, the proportion of central enterprises gradually decreased. Most local state-owned enterprises are concentrated in industries such as mining, crude oil production, and metal products. Since Hegang Group Co., Ltd. first appeared on the list in 2009, the number of local state-owned enterprises on the list has continued to increase, rising from 3 in 2010 to 40 in 2022; The proportion of operating revenue among Chinese companies on the Fortune Global 500 list has continued to increase from 4.6% in 2010 to 20.0% in 2022.

State owned enterprises, especially central enterprises, are the backbone for achieving high-level technological self-reliance and self-improvement. From 2012 to 2021, central enterprises have cumulatively invested 6.2 trillion yuan in research and development funds, with an average annual growth rate of over 10%. In 2021, the R&D investment intensity reached 2.5%, an increase of 0.8 percentage points from 2012. In 2021, the number of central enterprises that won the the State Technological Innovation Award and the National Science and Technology Progress Award accounted for 49% of the total number of similar awards, which was the highest over the years. By the end of 2021, there were 5327 R&D institutions of central enterprises, including 91 State Key Laboratory.

The per capita operating income of private enterprises in China has shown an overall upward trend, surpassing state-owned enterprises since 2012. However, there is still a gap with the overall level of "Fortune 500" enterprises, and for the first time in 2022, it exceeded the average level of US listed companies and "Fortune 500" enterprises. From the trend from 2017 to 2022, the per capita operating income of private enterprises in China has grown the fastest, with a compound growth rate of about 70.79%, indicating strong vitality in the development of the private economy and obvious advantages as a latecomer. For over 40 years, China's private economy has grown from small to large and from weak to strong, continuously expanding and contributing over 50% of tax revenue, over 60% of GDP, over 70% of technological innovation achievements, over 80% of urban labor employment, and over 90% of enterprise numbers. Since 2012, the proportion of private economy in GDP has increased by more than 10 percentage points, becoming an important contributor to China's economic growth. In 2008, Lenovo Group Limited made its debut on the list; In 2015, the listed private enterprises were distributed in 11 industries; In 2022, the listed private enterprises are distributed in 16 industries. Compared with state-owned enterprises, private enterprises are more flexible market operators, creating more value for society directly reflected in their business performance. The net profit margin of private enterprises is higher than that of central and local state-owned enterprises. The specific situation is shown in Figure 15.

Figure 15 Net profit margin of sales of central enterprises, local state-owned enterprises, and private enterprises on the list from 2013 to 2022

Private enterprises are at the forefront of technological innovation. The R&D investment of private enterprises in China accounts for about 60% of the national R&D investment, the number of invention patent applications accounts for about 50%, and the sales revenue of new products accounts for about 65%. 80% of the "specialized, refined, unique and new" enterprises are private enterprises. 70% to 80% of the ChiNext and Science and Technology Innovation Board in China's capital market are private enterprises. More than 90% of unicorn companies are private enterprises. The 16 Chinese companies included in the Top 50 Future Enterprises list published by Boston Consulting Group and Fortune magazine are all private enterprises.

Four prospects and suggestions

（1） Outlook

1. Overall trend

In 2022, the revenue trend and entry threshold of the "Fortune Global 500" list are highly consistent with the global economic growth trend. The most notable change in the 2022 ranking is undoubtedly that Chinese companies have achieved another leap forward. In 2022, Chinese companies on the list surpassed the United States for the first time in terms of revenue scale, achieving a new leap from the first number of companies on the list to the first in revenue scale, and creating a national development miracle in the history of the "Fortune Global 500". In 2022, the number of Chinese companies on the list reached 145, surpassing the United States for the fourth time in history. The number of Chinese companies on the list has reached a new historical high, with the highest number and proportion of profits since 2017, indicating that the profitability of Chinese companies continues to improve and the trend towards high-quality development is gradually becoming apparent. In the future, the global economy will flourish, and countries (regions) such as the United States, Canada, and Europe will have a good development trend in all aspects. Some Southeast Asian countries pose a certain threat to China's industrial competition due to low land prices and low manpower. China's economic development urgently needs to break through and make efforts.

2. Regional Trends

In 2022, Chinese companies on the list are distributed across 23 provincial-level administrative regions in China, including 9 in Taiwan and 7 in Hong Kong. In mainland Chinese cities, the listed companies are mainly distributed in the eastern region, while the number of companies listed in the central and western regions is significantly lower, and the phenomenon of regional development imbalance is more obvious. However, the number of companies listed in the central and western regions of China has increased from only 2 in 2010 to 19 in 2022, and the proportion of operating income has increased from 2.8% to 7.8%, showing a clear and steady upward trend. Uneven regional development is caused by uneven distribution of regional resources. While the economy is developing rapidly, the distribution of resources in different regions of China is also uneven. The eastern region has maintained a strong economic growth momentum, especially in the Yangtze River Delta and Pearl River Delta regions where many leading enterprises in various industries have taken root. This is related to the fact that in the early stages of reform and opening up, national policies mainly tilted towards coastal areas, establishing many special economic zones and carrying out the construction of coastal open cities. With the deepening of the national regional coordinated development strategy and the new urbanization strategy, as well as the formation of a new pattern in the western development and the accelerated rise of the central region, we have every reason to expect that the path for Chinese enterprises to enter the "Fortune Global 500" will become wider and wider.

3. Industry Trends

From the analysis of industry distribution, from 1996 to 2022, the number of industries covered by Chinese companies on the list has rapidly increased from 4 to 32, and the top three industries in terms of revenue have grown from 2 to 29, with 19 industries ranking first. The development of these industries has shown a comprehensive upward trend. Although Chinese companies still have a gap of 16 industries compared to the 48 industries in the United States, and the top ranked industry still has a gap of 13 industries compared to the 32 industries in the United States, time is on the side of Chinese companies. Despite a significant decline in profits for global energy companies, the revenue and profit margins of Chinese energy companies listed in 2022 are higher than the average level of the "Fortune Global 500" for the first time, maintaining a certain advantage in profit and revenue growth. The real estate industry is still one of the fastest recovering industries after the impact of the epidemic; The continuous decline in the proportion of profits in the financial industry since 2018 indicates that the decision-making and deployment of national governance to address the issue of "shifting from reality to virtuality" and boost the real economy have achieved significant results; The Internet industry is developing rapidly. The average income growth rate of the four Internet industry enterprises is higher than that of the US listed enterprises. Alibaba Group Holdings Co., Ltd. ranks first among the seven listed enterprises, and JD Group Co., Ltd. also ranks first in terms of profit growth rate and net asset income rate; The medical industry is steadily advancing. After China National Pharmaceutical Group Co., Ltd. was listed in 2013, Shanghai Pharmaceutical Group Co., Ltd. and Guangzhou Pharmaceutical Group Co., Ltd. were listed in 2020 and 2021 respectively. Although there is still a significant gap in the number and efficiency of pharmaceutical companies compared to the United States and Europe, the development stability and potential should not be underestimated.

4. Trends in ownership structure

Among the Chinese enterprises shortlisted in 2022, state-owned enterprises, especially those directly under the central government, have strong qualifications and a first mover advantage, ranking among the top in the list; Some private enterprises have come from behind and demonstrated their vigorous development potential in such industries as network and communication equipment, Internet services and retail, which has spawned many new economies with strong competitiveness and market influence worldwide. The process of Chinese enterprises entering the "World Top 500" shows that the development of state-owned enterprises and private enterprises is unified in the process of building socialism with Chinese characteristics, and together they have contributed vigorous vitality and exuberant vitality to Chinese path to modernization. The state-owned economy is the leading force of China's national economy, while the private economy is an important component of the socialist market economy, forming an important part of China's socialist basic economic system and forming a national development pattern with public ownership as the mainstay and multiple forms of ownership developing together.

（2） Suggestion

In the report of the 20th National Congress of the Communist Party of China, General Secretary Xi Jinping proposed that "high-quality development is the primary task of comprehensively building a socialist modernized country... It is necessary to fully, accurately, and comprehensively implement the new development concept, adhere to the direction of socialist market economy reform, adhere to high-level opening up to the outside world, accelerate the construction of a new development pattern with domestic circulation as the mainstay and domestic and international circulations promoting each other... accelerate the construction of a modern economic system, focus on improving total factor productivity, and enhance the resilience and safety level of industrial and supply chains... promote the economic realization of qualitative and effective improvement and rational growth in quantity." Since 1996, the number of Chinese enterprises listed in the "Fortune Global 500" has continued to grow, creating a miracle of global enterprise development. But it should be soberly recognized that the "Fortune Global 500" represents more scale and size, and the leapfrog development of Chinese enterprises benefits from the advantages of China's super large market and the rare historical opportunity to participate in global industrial division of labor and cooperation. At present, the world is undergoing unprecedented changes that are accelerating. A new round of technological revolution and industrial transformation is deepening, and strategic opportunities and risks coexist. Creating world-class enterprises that master key technologies, possess global competitive advantages, and have world-renowned brands and global influence is a long way to go, with arduous missions and responsibilities. It is necessary to acknowledge gaps, face shortcomings, and respond to challenges.

One is the need to further improve quality and efficiency. In 2022, the average sales profit margin of Chinese companies on the list is 5.2%, the total asset return rate is 1.2%, and the net asset return rate is 9.5%, which is significantly lower than the 11.1%, 3.2%, and 21.9% of American companies. Especially the average profit of American companies on the list is as high as 10.05 billion US dollars, which is 2.4 times that of Chinese companies on the list with 4.13 billion US dollars. The profit gap between Chinese and American enterprises is mainly due to differences in national conditions and corporate nature, but Chinese enterprises do have a lot of room for improvement in quality and efficiency indicators such as return on equity, total labor productivity, and total factor productivity.

Secondly, industrial development needs to better integrate into the era of accelerating the construction of a modern industrial system. In 2022, Chinese companies on the list only account for 56.1% of the total number of industries in the "Fortune Global 500". Among the 57 industries, 25 industries have not yet had Chinese companies on the list, and there is still a gap of 16 industries compared to the 48 industries in the United States. Chinese companies on the list are mainly concentrated in traditional industries such as metal products, mining and crude oil production, and real estate. The pharmaceutical industry with high industrial added value, as well as technology intensive industries such as semiconductors and electronic components, especially emerging industries such as life sciences and chip manufacturing, have insufficient companies on the list and still have a certain gap with the international leading level.

Thirdly, industrial innovation needs to further achieve technological self-reliance and self-improvement. Chinese enterprises have world-class capabilities in the transformation of scientific and technological achievements and large-scale production. However, innovation still largely remains at the level of integrated innovation, introduction, digestion, absorption, and re innovation. The dominant position of enterprises in scientific and technological innovation needs to be further highlighted, and their original and disruptive innovation capabilities urgently need to be further improved. We need to continue to increase the construction of basic technological innovation capabilities, expand international scientific and technological exchanges and cooperation, form an open innovation ecosystem with global competitiveness, and promote high-level technological self-reliance and self-improvement.

Fourthly, it is necessary to further seize global market opportunities. In 2001, China joined the World Trade Organization, and open and cooperative Chinese enterprises developed themselves, benefiting the world. Entering the WTO has brought vast external markets to Chinese enterprises, greatly promoting their marketization, legalization, and internationalization processes. However, the global resource allocation and integration capabilities still need to be improved. We need to rely on the advantages of China's super large market, attract global resource elements through domestic circulation, enhance the linkage effect of domestic and international markets and resources, make good use of the institutional opening dividends such as steadily expanding rules, regulations, management, standards, etc., take advantage of new opportunities and spaces in the global market, and shape new development momentum and advantages.