On August 3, the 2022 Fortune Global 500 list was officially released. Companies are ranked by size and compared based on revenue.

An increasing number of Chinese companies are taking the global stage, making China’s voice heard.

In 2019, China had 129 companies on the list, surpassing the United States for the first time. Since then, the number of Chinese companies on the list has continued to climb. This year, a total of 145 Chinese companies made the list, marking the fourth consecutive year that China has led all nations in total number of entries.

Every year, many companies aspire to make the list; some have established a firm foothold, while others have quietly exited. In fact, the list is like a cup of water—once it’s full, it will inevitably overflow… Therefore, companies must “add weight” and dig deeper to avoid being pushed out.

Which Region Has the Most “Top Companies”?

Overall, 136 companies from mainland China (including Hong Kong) and 9 from Taiwan made the list, totaling 145—an increase of 2 from the previous year—making China the country with the most companies on the list.

Among the 145 Chinese companies, 39 different cities are represented. Beijing, with 54 listed companies, is the city with the most Fortune Global 500 companies, accounting for over 40% of the total—far surpassing other cities.

Shanghai follows with 12, Shenzhen with 10, Hangzhou with 8, and Hong Kong with 7. Of the 9 companies from Taiwan, 5 are based in Taipei.

By province, excluding municipalities directly under the central government as well as Hong Kong and Taiwan, Guangdong Province has the highest number of Fortune Global 500 companies, with 17. Next is Zhejiang Province with 9; Shandong Province has 6, Fujian Province 5, and Sichuan, Jiangsu, Xinjiang, and Shanxi each have 3.

It is worth noting that Guangdong-based companies are primarily concentrated in Guangzhou and Shenzhen. Shenzhen leads with 10 companies, followed by Guangzhou with 4. Additionally, Foshan has 2 companies on the list, and Zhuhai has 1.

The listed companies are primarily distributed across multiple sectors, including manufacturing, internet and telecommunications, real estate, banking and finance, biopharmaceuticals, and infrastructure.

Among them, three new entrants have joined the list: BYD and SF Express, both making their debut, as well as China Electronics Corporation, which appears for the first time as a “Guangdong-based enterprise.”

Whose "Pockets Are Full"?

As the Pearl River Delta and Yangtze River Delta represent two of China’s most economically concentrated regions, which “delta” is better at accumulating wealth and generating profits when viewed through the lens of the Fortune Global 500?

An analysis of the list reveals that a total of 26 companies from the three provinces and one municipality of the Yangtze River Delta made the list.

Shanghai accounts for 12 of these spots, an increase of three from the previous year; Zhejiang, known for its thriving private sector, has nine companies on the list; Jiangsu, a major economic powerhouse, has three entries, all based in Suzhou; and Anhui has two provincial-level enterprises on the list.

In terms of industry distribution, these companies span sectors such as automotive, banking, pharmaceuticals, steel, shipping, cement, non-ferrous metals, and the internet, and are gradually assuming a leading role in the global economy.

Overall, the listed companies from the Yangtze River Delta are large in scale and numerous, fully reflecting the region’s economic vitality and the resilience of its industrial chains.

Among them, China Baowu Steel, Alibaba, SAIC Motor, and Hengli Group all reported revenues exceeding $100 billion. China Baowu Steel ranked highest at No. 44 with revenue surpassing $150 billion; SAIC Motor, ranked 68th, maintained its position as the top company in China’s automotive industry; and COSCO Shipping saw the fastest rise, climbing from 231st last year to 127th.

Analysis of the list reveals that the Yangtze River Delta region has 26 companies ranked among the Fortune Global 500, while the Pearl River Delta region has 24. In terms of numbers, the Yangtze River Delta region leads the Pearl River Delta by two companies.

However, in terms of profitability—particularly net profit—the Pearl River Delta has left the Yangtze River Delta far behind.

The profitability of just the 10 Fortune Global 500 companies in Shenzhen surpasses that of the entire Yangtze River Delta. These 10 Shenzhen-based companies generated a combined profit of 949.55 billion yuan, while the 26 Fortune Global 500 companies in the Yangtze River Delta generated a combined profit of 711.948 billion yuan.

Therefore, Shenzhen’s enterprises are the ones that truly know how to “make money,” making Shenzhen a well-deserved “capital of wealth creation.”

Big and Strong, Numerous and Refined

Undoubtedly, Chinese enterprises are growing stronger and continuously breaking records in terms of numbers, but they still face bottlenecks in core technologies. It is important to note that it is not just the numbers that deserve attention; a more detailed analysis from a cross-sectional perspective is even more crucial.

In the past, it was often said that competition between nations is a competition between multinational corporations, and the number of Fortune 500 companies establishing operations was a key indicator of the effectiveness of investment promotion.

Now, we can refine this perspective: competition between regions is competition among industrial chains, and at the core of these chains, specialized, refined, distinctive, and innovative small and medium-sized enterprises (SMEs) are indispensable for securing positions, holding ground, and driving growth.

In summary, Chinese enterprises must move upstream along the industrial chain, leveraging technological advantages to build deep moats and high walls that ensure their survival. Otherwise, sheer scale and astronomical figures may not provide sufficient safeguards.

In terms of “Made in China,” with 41 major categories, 207 medium categories, and 666 minor categories, China possesses the world’s most comprehensive industrial system. Among 500 major industrial products, China ranks first in global production for over 40% of them.

However, these 666 subcategories are not further subdivided into specific sectors. When broken down into dozens or even hundreds of micro-categories, Chinese enterprises hold no competitive advantage in most of these categories, and in many cases, they are virtually nonexistent.

Put simply, if we examine the full picture of the manufacturing system under a magnifying glass, we will discover vast gaps. It is not hard to imagine that the lack of core technologies lies precisely within these niche sectors.

Take metal fasteners, for example—one of the 666 subcategories. Further segmentation could distinguish types such as bolts, nuts, and rivets, and then categorize them based on application scenarios (heat resistance, acid and alkali resistance), materials used, and target industries. Given this level of detail, one can easily imagine how much of an advantage China actually holds.

Therefore, when it comes to attracting investment, we must focus on technological breakthroughs and market penetration in key sectors. Small yet specialized and strong enterprises—regardless of whether they appear on any list—should not be underestimated.

Times change, but truths remain constant; only by deeply cultivating a single industry can one become a leader.