Profits of Chinese TOP 500 overtake US TOP 500 for the first time!

[Shuimo]

Per this online news of the Chinese portal website Sina "Profits of Chinese TOP 500 overtake US TOP 500 for the first time (http://finance.sina.com.cn/g/20090905/20486712414.shtml)", the net profits of Chinese TOP 500 companies totalled 170.6 billion US $ in the first half of 2009, while their US counterparts came to 98.9 billion US $ (Forbes figure), due to the strong ecnomic growth of China and its having a minor negative impact of the global economic downturn!

What do you make of such economic figures and the stories behind?

[Eye]

Does it mean that average Chinese will drive an Audi now?

[LaoSexMachine]

I welcome or new Chinese overlords. Kanpie!!!!!!

[FlintHillBilly]

It means we are still buying Chinese products.

[vinny_121_ND]

all lies. That's impossible.

[CMNot]

Seems like a reputable source, just surprised the FT aren't running it. You'd think it would be right up their street.

[vinny_121_ND]

wait, when I click on the link, it's in mandarin. Is there a translation?

[cn_habs]

It makes perfect sense since Chinese top 500 weren't hit as severely as their American counterparts which saw their net profits dropped by 84.67% compared with last year.

In 2008, it was 194.75B for China whereas the the figure for the U.S. was 6451B.

Sina is as reliable as it gets.

[Panchito12]

What do you make of such economic figures and the stories behind?

I make nothing of such economic figures and the stories behind it.

[Mu-Meson]

I suspect the US Top 500 will be back on top next year or the year after. This is probably a blip due to the nature of the situation.

[vinny_121_ND]

Let's wait and see if China's growth will continue. They are the world's number 1 exporter.

[Soldat_Américain]

Well considering that the Chinese continue to give out loans...they'll fall when the rest of us are in full recovery and they'll be behind for decades.

[Ordie]

What do you make of such economic figures and the stories behind?

How many of these 500 companies are state-owned?

[vinny_121_ND]

Well considering that the Chinese continue to give out loans...they'll fall when the rest of us are in full recovery and they'll be behind for decades.

I don't have a degree in economics, but are you sure? The US debt clock is a number I can't recognize, approximately 1.2^13 dollars. When will that be paid off?
http://www.brillig.com/debt_clock/

[Soldat_Américain]

It's like 13 trillion or thereabouts. Yeah I'm sure, but that's if their bubble bursts...which it should. Chinese banks due to pressure from the government continue to loan money...whereas things in the west have tightened extremely. Honestly even before this recession I had no idea how we were going to pay off what was 7 trillion dollars in debt because we we ran at the time what were huge deficits under Bush. People don't want to be taxed so it will take a long time to pay off the debt and with with two wars still going on there won't be a focus on that even though it would be nice.

[Ordie]

I don't have a degree in economics, but are you sure? The US debt clock is a number I can't recognize, approximately 1.2^13 dollars. When will that be paid off?
http://www.brillig.com/debt_clock/

The Chinese Government just throws people and money at any problem to placate the masses. They throw money at the Chinese stock market to keep it artificially up.

If they don't, masses of Chinese who put thier life savings into stocks will riot in the streets.

Lack of free elections, legitimacy of the CCP to rule is based on positive economic growth.

[vinny_121_ND]

I did not know that. Thanks for clearing that up.

[Shuimo]

How many of these 500 companies are state-owned?

I guess almost all of them are state-owned!
That is the quality difference bwt Chinese and American top 500s!

Moreover, these state-owned Chinese enterprises all run monopoly of the market!

[khukuri]

Correct me if Im wrong nut isnt chinese business mainly concetrated around very large firms. While in the west there tends to be a mix?

[Shuimo]

Correct me if Im wrong nut isnt chinese business mainly concetrated around very large firms. While in the west there tends to be a mix?

It is a 50/50 case for the Chinese side!
Privatedly-owned economy accutally accounts for 65% of China's GDP so far!

[Solvent]

The news is misleading. Profit of 2009 only means somebody else is doing better than others in 2009, which is normal in business world.

But the scales and strength of US top 500 are still much larger than China's. Once the economy recovers, US will catch up in terms of profits.

[Soldat_Américain]

I guess almost all of them are state-owned!
That is the quality difference bwt Chinese and American top 500s!

Moreover, these state-owned Chinese enterprises all run monopoly of the market!

That's why we laugh.

[Shuimo]

That's why we laugh.
So you really don't have to worry about the Chinese competivenss!
US/ Chinese TOP 500 are not on an equal footing!
There is just too long a way for us to go!

[Vandervahn]

...They are the world's number 1 exporter.

Not yet. Germany is still going strong ;)

[vinny_121_ND]

Not yet. Germany is still going strong ;)
oh right! German cars and german beer, real good.

[Soldat_Américain]

So you really don't have to worry about the Chinese competivenss!
US/ Chinese TOP 500 are not on an equal footing!
There is just too long a way for us to go!

I'm sorry but the US government doesn't own it's top 500 companies. Equal footing...my post has nothing to do with that. I feel it's a joke when your top 500 companies are state owned and you think for one second that warrants comparison, I have no doubt that the Chinese Dragon will one day be powerful economically with private industry that rivals it's American and European counterparts. But that will come a long way in the future, command economies aren't really the same.

[Shuimo]

I'm sorry but the US government doesn't own it's top 500 companies. Equal footing...my post has nothing to do with that. I feel it's a joke when your top 500 companies are state owned and you think for one second that warrants comparison, I have no doubt that the Chinese Dragon will one day be powerful economically with private industry that rivals it's American and European counterparts. But that will come a long way in the future, command economies aren't really the same.

I agree!
Figures indeed can be compared!
But there is just such a big story of differences and contrasts behind these figures! You really need to take care when being presented with such reports!:)

[CS1.6]

Americans pays much much more money to their employee than the Chinese companies,

Chinese companies take their employee as slaves, and then they call those saved money as profit; the CCP is slaving most of the Chinese;

Average monthly pay for the Chinese workers is somthing around 200 usd.

And i remember the labour cost in Germany is around 27 euro per hour(including the insurance and warefare), so it means the Chinese companies pay for their employees for one month as much as the Germany companies have to pay their employee for one day!!!

It's a big big big big big shame, i cant find another word but slave to describe the Chinese workers.

China is a rich country, but it has the poorest people.

The huge amount of money is owned and dominated not by the common Chinese people but by the vested interests class-CCP.

This so-called proletariat party has already been the richest party in the world, left another 1 billion poor people behind.

[vinny_121_ND]

There is no such thing as minimum wage in hong kong, even though it is a very very wealthy city. It's pure capitalism. A few will get very rich, and you will have a middle class, and a lower class.

Then again, in the US, what's the minimum wage, 5 dollars?

[Soldat_Américain]

There is no such thing as minimum wage in hong kong, even though it is a very very wealthy city. It's pure capitalism. A few will get very rich, and you will have a middle class, and a lower class.

Then again, in the US, what's the minimum wage, 5 dollars?

Federal is like $5.15...but in CA it is like $8 IIRC...and in Montana at McDonald's people make like $10 per hour starting because no one will work for less. And I thought high school kids in my home town were bad.

[Estopped]

I think it's a trend that will continue. Having a billion people in one market will allow Chinese firms to grow rapidly in much the same way that American firms benefit from the large size of the US market.

[Shuimo]

I think it's a trend that will continue. Having a billion people in one market will allow Chinese firms to grow rapidly in much the same way that American firms benefit from the large size of the US market.

Perhaps that is what we call SCALE EFFECT?:)

The major prob with these Chinese state-owned companies is that
its profits are purely a result of POPULATION effect, not Productivity improvement!

[Shuimo]

Americans pays much much more money to their employee than the Chinese companies,

Chinese companies take their employee as slaves, and then they call those saved money as profit; the CCP is slaving most of the Chinese;

Average monthly pay for the Chinese workers is somthing around 200 usd.

And i remember the labour cost in Germany is around 27 euro per hour(including the insurance and warefare), so it means the Chinese companies pay for their employees for one month as much as the Germany companies have to pay their employee for one day!!!

It's a big big big big big shame, i cant find another word but slave to describe the Chinese workers.

China is a rich country, but it has the poorest people.

The huge amount of money is owned and dominated not by the common Chinese people but by the vested interests class-CCP.

This so-called proletariat party has already been the richest party in the world, left another 1 billion poor people behind.

DOWN WITH the vested interests class-CCP!rofl

[DaveDash]

I think it's a trend that will continue. Having a billion people in one market will allow Chinese firms to grow rapidly in much the same way that American firms benefit from the large size of the US market.

A billion people don't matter at GDP of ~$5,000 per person.

If China want to increase the purchasing power of their 1 billion, they're going to need to pay them more... which leads to inflation... lower profit margins... etc. Higher inflation leads to less overseas investment, etc.

I don't think the trend is going to continue. Not from their domestic market in any case. One day China's artificial economy will break HARD worst case or stablize best case.

[plato]

A billion people don't matter at GDP of ~$5,000 per person.

If China want to increase the purchasing power of their 1 billion, they're going to need to pay them more... which leads to inflation... lower profit margins... etc. Higher inflation leads to less overseas investment, etc.

I don't think the trend is going to continue. Not from their domestic market in any case. One day China's artificial economy will break HARD worst case or stablize best case.

Are you sure about that? A billion people do matter even at GDP of $1000 per person.

[Estopped]

A billion people don't matter at GDP of ~$5,000 per person.

If China want to increase the purchasing power of their 1 billion, they're going to need to pay them more... which leads to inflation... lower profit margins... etc. Higher inflation leads to less overseas investment, etc.

I don't think the trend is going to continue. Not from their domestic market in any case. One day China's artificial economy will break HARD worst case or stablize best case.

Wishful thinking on your part methinks.

When China finally makes use of its own domestic market their economy will feel like it's got a jet engine stapped to the back.

[hsh2]

Wishful thinking on your part methinks.


I tend to agree with that.

What bothers me about this whole anti China (and also anti Russia/India) talk that is so prevalent in our (western) journals is that they are always built on the premise that the Chinese are completely stupid, completely unaware of their own weaknesses etc and that it takes some "eminent scholar" to set the record straight by using generalistic cookie cutter arguments (that would also apply to us).

I really dont see how a nation of +1Bio, which are fiercely nationalistic and extremely intelligent could not end up being the Superpower sooner or later.

Btw when it comes to inferior Chinese technology or ideas (another popular argument)...Have a look at the demographics of Silicon Valley or the Ivy Leagues...:lol: Talk about a big technology transfer in the near future:|