15 Companies Led by CEIBS Alumni Make the 2024 Fortune Global 500 List
August 12, 2024. Shanghai — Fifteen companies led by CEIBS alumni featured in the recently released 2024 Fortune Global 500 list, an increase of one from last year, with ten of these companies seeing a rise in their ranking. This remarkable performance, achieved amidst a complex geopolitical and economic environment, demonstrates the excellence and widespread influence of the CEIBS alumni community, and the resilience and competitiveness of the companies that they lead.
Both Chinese and multinational companies currently face obstacles such as slowing global economic growth, geopolitical upheaval, and the increasingly complex interplay between national competition and cooperation, as well as the restructuring of global supply chains.
This year, 133 companies from China, including Taiwan, made the list, a decrease of nine from last year. In contrast, 139 US companies were listed, an increase of three from the previous year, making the US the country with the most ranked companies. This marks the first time since 2018 that the US, and not China, has come out on top.
The minimum sales revenue threshold for inclusion on the 2024 Fortune Global 500 rose from $30.9 billion last year to $32.1 billion this year. The combined revenue of all companies on the list amounted to approximately $41 trillion, equivalent to one-third of global GDP, representing a small increase of about 0.1% from last year.
These 133 Chinese companies generated a total revenue of around $11 trillion in 2023, a decrease of roughly 6% compared to the $11.7 trillion generated by 142 ranked companies last year. The average operating profit for listed companies from mainland China (including Hong Kong) was only $3.9 billion, well below the $5.9 billion average for all 500 companies on the list.
At the top of the list, Walmart remains the world's largest company for the eleventh consecutive year, Amazon has regained second place, and China's State Grid Corporation remains in third. The fourth and fifth positions are held by Saudi Aramco and China Petrochemical Corporation (Sinopec), respectively.
Among the 15 companies on the list led by CEIBS alumni, 10 companies saw a significant rise in their rankings, including Shenghong Holding Group (up 51 places), CATL (up 42 places), and Zhejiang Geely Holding Group (up 40 places). A total of 15 CEIBS alumni hold positions as chairpersons, vice-chairpersons, presidents, general managers, or founders in these listed companies.
CEIBS is committed to cultivating responsible leaders with “China Depth, Global Breadth” that possess both a deep understanding of China and a global perspective, as well as a commitment to social responsibility. This unique approach empowers our alumni to excel and develop into senior management talent in a complex and competitive international business environment. To date, CEIBS has produced over 30,000 alumni spread across 91 countries and regions who, driven by the common values of "conscientiousness, innovation, and excellence," make significant contributions to the global economy and international economic development.
Oliver Rui
CEIBS Professor of Finance and Accounting
Global Economic Restructuring and the Pressures of Internal Transformation
In the context of global economic fluctuations and an intensified competitive landscape, the overall number of Chinese companies on the 2024 Fortune Global 500 list is 133, down nine from last year. This is the first time since 2018 that the number of Chinese companies is fewer than the number of American companies. This should not, however, be interpreted as a sign of a decline in the competitiveness of Chinese companies, but rather as a reflection of global economic changes and internal transformation pressures.
Overall, Chinese companies continue to hold a strong position in the Global 500. The State Grid Corporation of China and Sinopec remain among the top companies on the list, highlighting China's significant influence in the global energy and infrastructure sectors. Additionally, several companies have seen a marked rise in their rankings, especially in e-commerce: JD.com ranked 47th, up five places from last year, entering the top 50 for the first time. Through technological innovation and refined operations, they have improved efficiency and competitiveness, further consolidating their market position. Furthermore, Pinduoduo made the list for the first time following significant growth in both revenue and net profit, benefiting from strong market expansion.
The 15 CEIBS alumni-led companies listed this year span multiple sectors including energy, telecommunications, technology, manufacturing, and finance. Chinese companies in general have achieved breakthrough innovations in many areas through continuous investment in R&D. Huawei, for example, which rose from 111th to 103rd place this year, has made significant investment in scientific research, critical technology advancements, and future technology planning, reflecting the simultaneous growth of Chinese companies’ technological capabilities and power, and highlighting the critical role of technological innovation in maintaining long-term corporate competitiveness.
In the new energy vehicle sector, the strong performance of Geely and CATL is reflective of the continued global advancement of the new energy vehicle industry, and China’s position at the heart of it. As global demand for sustainable energy and clean transportation solutions grows, Geely and CATL have responded to increasing demand for environmental protection and intelligent driving through technological innovation, not only driving the advancement of China's automotive industry but also contributing the country’s innovations and solutions to the global market.
More traditional industrial enterprises have also successfully achieved industrial upgrades and improved their position in the global value chain by optimizing production efficiency and resource allocation through digital transformation and intelligent upgrades. In the home appliance sector, the significant growth of Midea’s B2B business and Haier Smart Home’s expansion in high-end brands have demonstrated the intelligent and brand-oriented upgrading of China's traditional manufacturing industry through diversified strategies.
Ultimately, there remains a profitability gap between Chinese and American companies. The average profit of American companies is $8.8 billion, while the average profit for companies from mainland China (including Hong Kong) is $3.9 billion: less than half. Chinese companies still have room to improve in operational efficiency and return on assets, both of which remain key challenges in their development.
While state-owned enterprises have advantages in scale and resources, they still face transformation pressures and must enhance efficiency and strengthen their market-oriented operations, particularly in the energy and manufacturing sectors. Private enterprises, on the other hand, have demonstrated more potential for innovation, market responsiveness, and profitability in the global market.
To achieve higher-quality development in the future, Chinese companies must continue to strengthen drivers such as innovation, industrial upgrading, digital transformation, internationalization strategy, institutional innovation, and policy support, while also enhancing their corporate governance, brand building, and sustainable development capabilities.
Albert Hu
CEIBS Professor of Economics
Continuous Innovation is the Only Way Forward for the Development of Chinese Enterprises
This year, 139 US companies made it to the Fortune Global 500 list, compared to 133 Chinese companies. The US has increased its total number of ranked companies by three since last year, while China’s total has declined by nine. This marks the first time since 2018 that the US has claimed the top spot on the list, after being overtaken by China in 2019. The shifting positions of the US and China on the list reflect the macroeconomic differences between the two countries.
The US economy achieved a solid growth rate of 2.5% in 2023, with inflation significantly slowing as a result of the Federal Reserve's high-interest-rate policy. US companies have subsequently leveraged their pricing power, achieving substantial growth in revenue and profits in this favorable macroeconomic environment. US financial institutions, including banks, have also benefited significantly, with the top ten US banks on the list achieving revenue growth of nearly 30% or more. An investment boom centered on artificial intelligence has driven the development of the US high-tech industry, with NVIDIA achieving a revenue growth of 126% and making its debut on the Fortune Global 500 list.
Although Chinese economic growth has stabilized since the pandemic, it still faces challenges such as insufficient effective demand, the slow recovery of consumer confidence, and low investor confidence, leading to significant growth pressures for Chinese companies. Of the nine Chinese banks that made this year’s list, only four achieved revenue growth, with the highest growth rate among them being less than 10%.
Despite this challenging macroeconomic environment, many Chinese companies have still delivered impressive performances: nearly 50 Chinese companies saw their rankings rise this year, and five Chinese companies made the list for the first time. The ranking of BYD, a key representative of the new energy vehicle industry, rose by 69 places. Pinduoduo, driven by an innovative business model, achieved 80% revenue growth last year, leading to its debut on the 2024 list. In the face of complex economic and geopolitical environments, continuous innovation like that demonstrated by these companies, is the only path forward for the effective development of Chinese enterprises.