The list of the top 500 foreign enterprises in China (measured by sales revenues) for 2001-2002 was unveiled recently. Tianjin Motorola Electronics Co. Ltd. topped the list for the second year running. Next came SAIC-Volkswagen Sales Co. Ltd. up from its number five slot last year. In third place was the Shanghai Volkswagen Car Co. Ltd. slipping back from its number two position last year.

To win its pole position again in 2001, Tianjin Motorola achieved aggregated sale revenues of some 41.07 billion yuan (about US$4.97 billion). This represented an increase of nearly 10 billion yuan (US$1.2 billion) on 2000.

The full top ten list was:

1. Tianjin Motorola Electronics Co. Ltd.

2. SAIC-Volkswagen Sales Co. Ltd.

3. Shanghai Volkswagen Car Co. Ltd.

4. Beijing Capital-Nokia Mobile Telecommunications Co. Ltd.

5. FAW-Volkswagen Car Co. Ltd.

6. FAW-Volkswagen Sales Co. Ltd.

7. Legend (Beijing) Co. Ltd.

8. Huaneng Power International Inc.

9. Shanghai Siemens Mobile Telecommunication Co. Ltd.

10. Nanjing Ericsson Mobile Telecommunication Co. Ltd.

Sources at the Ministry of Foreign Trade and Economic Cooperation described the procedures used to ensure the accuracy of the recently released list. The rank order is derived by reference to the records arising from their regular annual monitoring of foreign enterprises.

According to the experts, the top 500 foreign enterprises share a number of common characteristics.

They return sustained growth in sales. The combined sale revenues of the top 500 foreign enterprises reached some 1,347.23 billion yuan (about US$162.96 billion) up nearly 20 percent on 2000. Average sales revenues are nearly 2.7 billion yuan (US$ 326 million) also up almost 20 percent on last year. No fewer than 429 of the 500 achieved sales of over 1 billion yuan (US$120.8 million), 78 more than the previous year.

Although they operate across a wide range of interests they are likely to be involved in pillar industries. They are to be found in the high-tech industries and in the service sector. Typically they are in telecommunications, electronics, automobiles, electricity, petrochemicals, steel, real estate and retailing.

The eastern coastal areas are still the first choice for foreign investment with 450 of the top 500 foreign enterprises located there. Guangdong Province is the favorite, playing host to 146 of these enterprises. Not surprisingly the eastern based enterprises account for nearly 90 percent of the sales revenues of the top 500.

Recent years may have seen the world economy languishing in recession but China's economy has proven to be a bright spark in the gloom. This has been due in no small measure to the contribution to China's development made by inward foreign investment. So, this in turn has fuelled a continuing influx of further international funds.

Statistics from the Ministry of Foreign Trade and Economic Cooperation show that the actual foreign funds attracted in the first 9 months of this year were some US$36.6 billion up 22.8 percent compared with the corresponding period last year.

Experts believe that this massive inward investment not only brings economic growth, job opportunities and advanced technology but also less easily quantified benefits like access to advanced management methods. They point to such intangible assets as key contributors to sustainable development of China's economy.

(china.org.cn by Tang Fuchun, November 20, 2002)