Government Businesses on Top Ten in China's Biggest 500 Companies

Concerns are mounting in China over the high proportion of state-run businesses among the top 500 firms and the fact that despite their huge size, they have gained little advantages in earning ability.

The top ten of China’s latest list of the top 500 biggest companies for 2010 are all state-owned companies, according to a report released by China Enterprise Confederation and China Entrepreneur Association on Saturday.

China Petroleum & Chemical Corporation, the country’s oil giant, tops the list with $1.39 trillion by revenue for six straight years. Other government enterprises among the top ten are oil giants including China National Petroleum Corporation, huge lenders such as the Industrial and Commercial Bank of China, and infrastructure construction thumbs such as the State Grid, China Railway Construction Corporation and China Railway Group.

Huawei Technologies Co. Ltd, the largest networking and telecommunications equipment supplier in China, squeezed into the list ranking 37 as the biggest privately-run firm. Others including Shagang Group, Haier, Suning Appliance and Gome Appliance are also listed into the “multi-billion-dollar club.”

Concerns are mounting in China over the high proportion of state-run businesses among the top 500 firms and the fact that despite their huge size, they have gained little advantages in earning ability. Profit margin, for example, is 5.38 percent compared with 5.79 percent in privately-run businesses.