More Chinese private companies have been included in the latest Fortune Global 500 list. Two star private firms – battery producer Contemporary Amperex Technology Co (CATL) and food delivery platform Meituan – appeared on the list for the first time. Their rapid growth is indicative of the development momentum of Chinese private companies thanks to vigorous government policy support. In this year's Fortune Global 500 list, a total of 39 companies made their debuts or re-entered the list, including seven Chinese companies. One notable addition is CATL, which achieved sales revenue of USD48.8 billion in 2022, securing its first-time entry to the list. The number of internet companies on the list has increased to eight, with an equal representation of Chinese and American firms. The listed internet companies are Amazon, Alphabet, JD, Alibaba, Meta Platforms, Tencent, Meituan and Uber. Experts said that the inclusion of Meituan and CATL is not surprising, as both companies are representative of their booming and sustainable industries in China.
The two listed companies represent the two important directions of China's future development. “CATL represents China's booming new-energy industry in the context of green development, while Meituan symbolizes the digital and intelligent industry, epitomizing the dynamic platform economy in the country. When combined with artificial intelligence (AI), the platform-based economy will offer ample opportunities for private companies,” Wang Peng, Associate Research Fellow at the Beijing Academy of Social Sciences, told the Global Times. “Their inclusion in the list injects strong impetus into the growth of China's private sector, and marks a milestone for their development,” Wang said, adding the government has consistently supported their development.
Foreign media have been critical of China's private sector, saying it is facing more pressure from regulatory scrutiny and oversight, an allegation that experts said is groundless. Wang said that some Western media have been continuously disparaging China, and “the so-called claims of China suppressing the private economy are an example of this biased narrative.” Li Chang'an, Professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the Global Times that “claims of some foreign media outlets about China suppressing private firms are flawed since the recent development of the private economy has mainly been influenced by the macro-economic situation.”
The Chinese government has implemented measures aimed at bolstering the private sector, demonstrating its commitment to creating a healthy and equitable market environment for all types of companies. Last week, eight Chinese ministries jointly released 28 measures to support the private economy. The measures include ensuring fair access for private firms to participate in significant national projects and technological initiatives, providing increased financial and land support, and enhancing legal protection for private companies. On July 19, the Communist Party of China Central Committee and the State Council issued a guideline on boosting the growth of the private economy.
While China's economic recovery might not have been as rapid as some anticipated, the overall situation remains positive, with the role of China's economy in the world becoming increasingly significant. Throughout this process, the private economy has played a pivotal role, experts said. Since 2012, the proportion of the private economy in China's GDP has increased from less than 50% to more than 60%. The number of China's private enterprises increased from 10.86 million in 2012 to more than 47 million in 2022. “Given this context, there is good reason to believe that Chinese private enterprises will have broad space for development in the future,” Li said, as reported by The Global Times.
The China Daily adds that 142 Chinese companies, including those from Taiwan, made it to the annual list, marking the fifth consecutive year that Chinese companies topped the list in terms of number. The U.S. and Japan followed with 136 and 41 enterprises, respectively.
Meanwhile, Forbes China also released the list of the world’s newest unicorns that emerged in the first half of this year. Out of 55 such unicorns, 23 are from China and 20 from the United States. The world currently has 1,653 unicorns. Forbes China said the U.S. still has the largest number (768) of unicorns, followed by China (394), Europe (269) and India (87).
