China has pushed US companies off the top spot for the largest global revenue generated by each country, according to the Fortune’s Global 500.
Companies in China made $204.6 million less than the United States this year, representing the two countries closest ever in global revenue shares.
Compared with the United States, China has 136 to 124 American companies on the list, the United States accounts for 29.7 percent of total revenue and China 29.2 percent.
The United States’ share of the Fortune Global 500 is down from last year, when it was 30.4 percent of the total.
The Fortune Global 500 list revealed that if Taiwan’s revenue were included, the Chinese Dragon would overtake the United States for the first time in history.
However, US profits are more than twice as much as their Chinese counterparts, with US companies taking in $1,246.3 billion this year compared to China’s $560.99 billion.
China is closer to the United States than ever before, their companies bringing in total revenue nearly as much as America’s world leaders
Companies in China made $204.6 million less than the United States this year, representing the two countries closest ever in global revenue shares. American companies still occupy the two main positions in the Fortune Global 500 list, but four Chinese companies top the list of Chinese companies
China’s GDP growth has slowed in recent years, but forecasts still indicate that it could outperform the United States by 2030 for the first time ever.
Four Chinese companies and four US companies are included in the Fortune Global 500’s top ten list, with Walmart dropping to number one for the ninth consecutive year.
Amazon came in second, reaching its highest rating ever, with Chinese energy giants State Grid, China National Petroleum and Sinopec taking the top five spots.
Fortune Global 500 companies generated revenues totaling $37.8 trillion, which is more than a third of the world’s gross domestic product.
It was a 19 percent increase from last year, resulting in the highest annual growth rate in the list’s 33-year history.
American profits are more than double what their Chinese counterparts are getting, with American companies taking in $1,246.3 billion this year compared to China’s $560.99 billion.
What is GDP? How does the government measure the economy?
Gross Domestic Product, or Gross Domestic Product, is a measure of the total market value of all goods and services produced within the United States.
The Bureau of Economic Analysis uses real GDP, adjusted for inflation, for its quarterly report on economic growth.
The agency’s formula for GDP brings together four components: consumer spending, business investment, government spending, and net exports (exports minus imports) to arrive at the total.
The GDP equation does not include voluntary services or illegal activities.
With most companies emerging from the COVID-19 recession, cumulative profits are up 88 percent in the past year, to $3.1 trillion.
‘The recovery from the worst depths of the pandemic has created a huge tailwind for the world’s largest companies by revenue,’ said Scott DiCarlo, editor of the Fortune List.
Total sales and profits reached record levels in fiscal year 2021 for the Fortune Global 500.
“The Global 500 is the ultimate scorecard for business success and companies face another major test that will pass many global economic headwinds in 2022.”
The companies on the 2022 list employ 69.6 million people worldwide and are stationed in 229 cities and 33 countries and regions around the world.
The number of Fortune Global 500 CEOs increased to 24 this year from 23 last year.
“Here’s the problem: These numbers reflect financial data from 2021, when the world began to recover from COVID-19,” added Alison Schontel, editor-in-chief of Fortune.
“This year has brought a whole new truckload of challenges… For companies of all sizes, the real test will be who can survive and thrive in challenging conditions like these, especially if — or when — a recession of unknown length and depth settles.”
A well-known measure of inflation, the Consumer Price Index, reached 9.1% in June
China’s GDP growth has slowed in recent years, but projections still suggest that it could overtake the United States by 2030 for the first time ever — with Fortune Global 500 numbers emerging to support that.
This comes after it was reported that America is heading towards a recession, after the American economy met the classic definition of deflation through deflation for the second consecutive quarter.
The Commerce Department said in a report last month that US gross domestic product shrank 0.9 percent in the second quarter, after a 1.6 percent decline in the first quarter.
However, Biden responded in a statement that did not mention the possibility of a recession, instead saying that “it is not surprising that the economy is slowing while the Federal Reserve is working to bring down inflation.”
Although two quarters of GDP contraction is the classic and unofficial definition of a recession, the White House has denied that the United States meets the criteria for a recession, saying that a panel of economists should officially declare that the economy is no longer expanding.
Republican critics accused the administration of going against reality, with House Minority Leader Kevin McCarthy saying in a speech: “It would rather redefine a recession than restore a healthy economy.”
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