Because China is out of the ranking of the largest companies in the world
The new list of the ten largest capitalization companies is dominated by American Big Tech, while China is out. The most important Asian company in the world is now Taiwanese Tsmc. All the details
According to new QUICK-FactSet data, there are no Chinese companies on the list of ten companies with the largest market capitalization in the world. Tencent and Alibaba, both operating in the technology sector, dropped out of the ranking: at the end of 2020, Tencent was in seventh place (now it is in eleventh), while Alibaba was ninth.
WHO IS IN THE LIST
The list – as the Japanese newspaper Nikkei Asia points out – is dominated by US technology giants: on the podium there are, in order, Apple, Microsoft and Alphabet (the parent company of Google). The fourth place is occupied by the state oil company of Saudi Arabia, Saudi Aramco . Followed by Amazon, Tesla (electric vehicles), Meta (formerly Facebook), NVIDIA (processors and graphics cards; American) and Berkshire Hathaway (Warren Buffett's holding company; American).
In tenth place, to close the ranking, there is TSMC, which produces microchips and is Taiwanese: it is the Asian company with the highest value in the world.
HOW MUCH THE WORLD HAS CHANGED
The list of 2021 is even more impressive when compared to that of 2007: at the time the Chinese presence (four out of ten positions, including the first) was very significant, and reflected the great expectations on the country's economy.
If the ranking of 2021, then, is dominated by companies in the technology sector, that of 2007 was made up mostly of energy companies: PetroChina, ExxonMobil and Royal Dutch Shell deal with oil; General Electric had divisions dedicated to public utility services; Gazprom markets natural gas; Sinopec works in petrochemicals.
THE CHINESE CLOSE ON BIG TECH
After the financial crisis of 2008, writes the Nikkei Asia , Chinese technology companies have grown tremendously, thanks to the possibilities offered by the gigantic domestic market. Recently, however, the Beijing government's efforts to harness the industry and bring it back under state control have impacted these companies. Didi Global, for example, which offers a ride hailing service similar to Uber, decided last December 3 to withdraw its listing on the New York Stock Exchange just five months after its debut: it has to do with the most careful supervision of the Chinese authorities on data of national companies listed abroad.
On the other hand, the restrictions imposed by the United States on investment and trade between American and Chinese companies have also penalized Beijing's technology industry. These decisions must be read taking into account the economic-political clash between the two superpowers, which revolves a lot around the primacy of new technologies.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cina-aziende-maggiore-capitalizzazione/ on Sun, 26 Dec 2021 15:11:42 +0000.