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Country's firms surpass US rivals
(chinadaily.com.cn)
Updated: 2009-09-07 11:26 HANGZHOU: The money-earning capability of China's top 500 enterprises has exceeded that of their United States counterparts for the first time, as the sweeping financial crisis pummeled many US firms while China is already entering an economic recovery. Net profits for the Chinese companies stood at $170.6 billion in 2008, well above the $98.9 billion for US companies in the same period, according to the latest report released on Saturday by the China Enterprise Confederation (CEC) and China Enterprise Directors Association. Although the financial crisis decreased net profits for the Chinese heavyweights by 12.4 percent from a year ago, it is far less than the 84.6-percent fall experienced by US companies, which saw the worst decline in 55 years, as recorded by Fortune magazine. Wang Jiming, vice-president of CEC, said although the numbers show Chinese companies were less vulnerable to the global financial crisis than their US counterparts, it did not mean that they have made substantial improvements in overall competitive power. "Chinese enterprises enjoy relatively better policies and domestic market environment," Wang said. "But Chinese companies still lag behind the world's leading enterprises in resource allocation, innovation, international presence, business models and corporate culture." On the international scene, an unprecedented 34 Chinese companies made it onto the list of the world's top 500 companies, overtaking Britain. US companies captured 140 places in 2009, 13 less than last year. This is the eighth consecutive year CEC has released its list. About the broadcaster: Chantal Anderson is a multimedia journalist at the China Daily Web site. Originally from Seattle, Washington she has found her way around the world doing photo essays in Greece, Mexico and Thailand. She is currently completing a double degree in Journalism and International Studies from the University of Washington
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