According to the results of 2014, China ranked first in the world in terms of economic development, for the first time ahead of the United States, the largest exporter in 2010. This year, the domestic Chinese market is expected to become the largest in the world. Having begun to liberalize the economy since the 1970s, the PRC has increased its GDP more than tenfold. The state granted greater autonomy to state-owned enterprises and began to develop private business. Now private and public Chinese companies operate around the world.
The largest companies
The top ten Fortune Global 500 in 2017 included 3 Chinese companies, only the US has more (4). Three state-owned companies State Grid Corporation of China, Sinopec Group, China National Petroleum ranked 2nd, 3rd and 4th respectively. State Grid is the world's largest power grid company and has a monopoly in the transportation and sale of electricity in China. The company expanded its business by building power grids and generating stations abroad and by acquiring power grid companies. In Russia, the company built cross-border power grids inAmur Region.
Sinopec Group, a China Petroleum and Chemicals Corporation, is engaged in the extraction of oil and natural gas, the production of petroleum products and petrochemical products (ethylene). It is also the largest public company in China, whose shares are traded on the New York, London and Shanghai stock exchanges. The Chinese oil and gas company is engaged in the organization of exploration and development of oil and gas fields in China, ranks first in the country in terms of oil and gas production.
Top 10
In China, they make their own list of the 500 largest companies, the first three places, of course, were taken by companies from the top ten of the Fortune Global 500, followed by the Industrial and Commercial Bank of China. Also among the largest companies are three more banks, an insurance company, a state construction corporation and an automobile corporation:
- China State Construction Engineering Corporation;
- China Construction Bank;
- Agricultural Bank of China;
- Ping An Insurance;
- SAIC Motor Corporation;
- Bank of China.
Income of the China Electric Grid Corporation, the first of the top 10, amounted to $315 billion, the last about $4.49 billion. All four banks have subsidiaries in Russia. The assets of CJSC "Commercial and Industrial Bank of China" amount to more than 74 billion rubles, other banks are just starting their activities
Banks lead the pack
In the ranking of the largest public companies Forbes Global2000, the first two places are occupied by Chinese banks Industrial and Commercial Bank of China (Commercial and Industrial Bank of China) and China Construction Bank (Industrial Bank of China), two more banks from China - Agricultural Bank of China (Agricultural Bank of China) and Bank of China (Bank of China). All four banks are state-owned. The Industrial and Commercial Bank of China has been the world's largest public company for several years, according to Forbes magazine. The bank controls a fifth of the country's financial sector and has more than 100 overseas branches that service export-import operations with China and investment projects of Chinese companies.
Internet giants
In the list of the best Chinese brands, the first 5 places belong to high-tech companies. At the same time, Tensenet and Alibaba Group are located on the first two. Tensenet, a little-known company in Russia, is the developer of several applications popular in China. WeChat, a quick voice and text messaging system, has amassed more than 938 million users. Social network Qzone, the third largest in the world in terms of the number of registered users after Google and YouTube.
On its online platform, the company offers a wide range of services - payment, e-commerce, entertainment and communications. The largest Chinese e-commerce company and one of the largest Internet companies in the world "Alibaba Group"is the owner of a number of platforms offering online services. Through Aliexpress, goods are sold to businesses and consumers, on Taobao anyone can open their own online store, on TMall the largest supermarkets in China place their online stores. Alipay payment service is used by 520 million people worldwide. Buidu, the "Google of China", the country's largest search engine, offers a wide range of services on its platform, including cloud storage, wallet, Internet TV, medical registration, food delivery service, and more.
Smartphones are coming
Huawei smartphones have already found their customers in Russia, thanks to their good quality and reasonable price. The company is pushing its competitors in global markets, last year, Huawei mobile phones for the first time became the best-selling brand in India, one of the largest markets for low-cost devices, pushing Samsung into second place. Digging is the world's largest manufacturer of telecommunications equipment. Huawei is China's third most valuable brand, followed by Xiaomi, another handset and other electronics manufacturer. The new Chinese company Xiaomi quickly began to sell its products in many countries around the world. The company produces a wide range of consumer electronics, including TVs, game consoles, headphones.
Chinese car
Two Chinese corporations SAIC Motor and Dongfeng Motor ranked 7th and 10th among the world's largest automotivemanufacturers. Both companies began production by creating joint ventures in China with global concerns, including Volvo, Renault, General Motors, and Nissan. And then they began to produce products under their own brands. SAIC Motor manufactures passenger cars, tractors, motorcycles, buses and spare parts. Dongfeng Motor specializes more in commercial vehicles (trucks), but also produces passenger cars, including electric vehicles.
Achieving success in the mass market, the country's companies are beginning to work in other market segments, the Chinese company Techrules presented a racing hypercar at a number of world car shows. A total of 95 cars will be assembled, no more than 10 per year.
Work in Russia
Chinese companies in Russia operate in almost all sectors of the economy. If earlier the priority sectors were agriculture, forestry, energy, then interest is shifting towards logistics, entertainment, high technology (46% of Chinese investment). The online B2B trading platform Aliexpress, owned by the Chinese IT giant Alibaba Group, is already the most popular site for purchasing goods in Russia. Russian-Chinese companies and Chinese subsidiaries provide 120,000 jobs in Russia.
China's largest automakers assemble cars in several regionsRussia, in the Kaluga region, two plants for the production of components for cars have been built. Chinese construction companies have implemented several major development projects: the Greenwood complex ($350 million) was built for the wholesale trade of Chinese goods, residential complexes in Ulan-Ude, Balashikha and Lobnya, the Baikal tourist complex, each project with an investment of about $100 million. The largest project "B altic Pearl" is being implemented in St. Petersburg, with an investment of $3 billion. In Primorsky Krai, projects are being implemented for the deep processing of wood, the construction of roads and bridges.
