China has nearly knocked US companies out of the top spot for the largest global revenue by country, according to Fortune’s Global 500.
Companies in China have brought in $204.6 million less than the US this year, which is the closest the two countries have ever achieved global revenues.
Compared to the US, China has 136 companies and the Americas 124 on the list, with the US accounting for 29.7 percent of total revenue and China 29.2 percent.
The United States’ percentage in the Fortune Global 500 is lower than last year when it reached 30.4 percent of the total.
Fortune Global 500 list revealed that if Taiwan’s earnings were included, the Chinese dragon would have overtaken the US for the first time in history.
However, US profits are more than double what their Chinese counterparts take home, with US companies pocketing $1,246.3 billion this year, compared to China’s $560.99 billion.
China has moved closer to the US than ever before, with their companies bringing in nearly as much total revenue as world leaders America
Companies in China have brought in $204.6 million less than the US this year, which is the closest the two countries have ever achieved global revenues. US companies still take the top two of the Fortune Global 500 list, but four Chinese companies are on their heels
China’s GDP growth has slowed in recent years, but projections still indicate it could overtake the US for the first time ever by 2030.
Four Chinese companies and four American companies are included in the Fortune Global 500 top ten, with Walmart taking the number one spot for the ninth straight year.
Amazon came in a close second, reaching its all-time high, 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 a 19 percent increase over the past year, resulting in the highest annual growth rate in the list’s 33-year history.
US profits are more than double what their Chinese counterparts take home, with US companies pocketing $1,246.3 billion 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 in 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 adds four elements: consumer spending, business investment, government spending, and net exports (exports minus imports) to arrive at a total.
The GDP formula does not include voluntary services or illegal activities.
With most companies emerging from a COVID-19 crisis, cumulative profits are up 88 percent in the past year to a record $3.1 trillion.
Fortune List Editor Scott DeCarlo said: “A rebound from the worst depths of the pandemic has created a huge tailwind for the world’s largest companies in terms of revenue.
Total revenue and profit reached record levels in fiscal 2021 for the Fortune Global 500.
“The Global 500 is the ultimate scorecard for business success and companies will face another major test in 2022 by overcoming several global economic headwinds.”
Companies on the 2022 list employ 69.6 million people worldwide and are located in 229 cities and 33 countries and regions around the world.
The number of female CEOs of Fortune Global 500 companies has risen to 24 this year from 23 last year.
Fortune Editor-in-Chief Alyson Shontell added: “Here’s the catch: These numbers reflect the finances of 2021, when the world started to recover from COVID-19.
“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 difficult circumstances like this, especially if – or when – a recession of unknown length and depth enters. ‘
A better-known inflation gauge, the consumer price index, reached 9.1% in June
China’s GDP growth has slowed in recent years, but forecasts still indicate it could overtake the US by 2030 for the first time ever – with the Fortune Global 500 figures appearing to back that up
It comes as America is reportedly heading for a recession after the US economy met the classic definition of a downturn by contracting for the second consecutive quarter.
The U.S. Department of Commerce said in a report last month that U.S. gross domestic product shrank 0.9 percent in the second quarter, after falling 1.6 percent in the first quarter.
Biden, however, responded in a statement not mentioning the possibility of a recession, saying that “it is no surprise that the economy is slowing as the Federal Reserve tries to cut inflation.”
While two-quarters of shrinking GDP is the classic and informal definition of a recession, the White House has denied that the US meets the criteria for a recession, saying a panel of economists must officially declare the economy is no longer growing.
Republican critics accused the administration of going against reality, with House Minority leader Kevin McCarthy saying in a speech, “You’d rather redefine a recession than restore a healthy economy.”