China has almost knocked American companies off the top spot of the largest global revenue created per country, according to Fortune’s Global 500.
Businesses in China have brought in $204.6million less than the US this year, marking the closest the two countries have ever been in the global revenue stakes.
Compared to the US, China has 136 companies to America’s 124 on the list, with the US making up 29.7 per cent of the total revenue and China 29.2 per cent.
The US’s percentage of the Fortune Global 500 is down from last year, when they hit 30.4per cent of the total.
Fortune Global 500 list revealed that if Taiwan’s revenue was included, then the Chinese dragon would have overtaken the US for the first time in history.
However American profits are more than double what their Chinese counterparts are taking home, with US companies pocketing $1,246.3billion this year compared to China’s $560.99 billion.
China has come closer to the US that ever before, with their companies bringing in almost as much total revenue as world leaders America
Businesses in China have brought in $204.6million less than the US this year, marking the closest the two countries have ever been in the global revenue stakes. American companies still take the two top spots of the Fortune Global 500 list, but four Chinese companies are hot on their tail
China’s GDP growth has slowed in recent years, but projections still indicate that it could overtake the US by 2030 for the first time ever.
Four Chinese companies and four US businesses are included in the Fortune Global 500 top ten, with Walmart landing the number one spot for the ninth year in a row.
Amazon came a close second, reaching its highest ranking ever, with Chinese energy giants State Grid, China National Petroleum, and Sinopec rounding out the top five.
Fortune Global 500 companies generated revenues totaling $37.8 trillion, which is more than a third of the world’s Gross Domestic Product (GDP).
It marked an increase of 19 per cent over the last year, which resulted in the highest annual growth rate in the list’s 33-year history.
American profits are more than double what their Chinese counterparts are taking home, with US companies pocketing $1,246.3billion this year compared to China’s $560.99 billion
What is GDP? How the government measures the economy
Gross domestic product, or GDP, 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, which is adjusted for inflation, for its quarterly report on economic growth.
The agency’s formula for GDP adds together four elements: consumer spending, business investment, government spending, and net exports (exports minus imports) to arrive at a total.
The formula for GDP does not include volunteer services or illegal activities.
With most businesses coming out of a COVID-19 slump, cumulative profits have been on the rise by 88 per cent in the last year, for a record $3.1trillion.
Fortune List Editor Scott DeCarlo said: ‘A rebound from the worst depths of the pandemic created a huge tailwind for the world’s largest companies by revenue.
‘Aggregate sales and profits hit record levels in fiscal year 2021 for the Fortune Global 500.
‘The Global 500 is the ultimate scorecard for business success and the companies face another big test navigating several global economic headwinds in 2022.’
Companies on the 2022 list employ 69.6 million people worldwide and are based in 229 cities and 33 countries and regions around the world.
The number of women CEOs of Fortune Global 500 companies rose to 24 this year, from 23 last year.
Fortune Editor-in-Chief Alyson Shontell added: ‘Here’s the catch: These numbers reflect financials from 2021, when the world was starting to bounce back from COVID-19.
‘This year has brought a whole new truckload of challenges… For businesses of every size, the real test will be who can survive and thrive in tough conditions like these, especially if—or when—a recession of unknown length and depth settles in.’
A better-known inflation gauge, the consumer price index, hit 9.1% in June
China’s GDP growth has slowed in recent years, but projections still indicate that it could overtake the US by 2030 for the first time ever – with the Fortune Global 500 numbers appearing to back that up
It comes after America is reportedly heading for a recession, after the US economy met the classic definition of a downturn by contracting for the second straight quarter.
The Commerce Department said in a report last month that US gross domestic product shrank 0.9 percent in the second quarter, following a decline of 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’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation.’
Though two quarters of shrinking GDP is the classic and informal definition of a recession, White House has denied that the US meets the criteria for a recession, saying a panel of economists must officially declare that the economy is no longer expanding.
Republican critics accused the administration of flying in the face of reality, with House Minority Leader Kevin McCarthy saying in a floor speech: ‘You would rather redefine a recession than restore a healthy economy.’
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