China is making progress up the Global Power Ranking if you count market caps.
Chinese publicly traded companies are now dominating the top 10 list of biggest market capitalizations worldwide. A Le Figaro article of 30 October highlighted that 5 out of the top 10 largest market caps are Chinese, including world #2 PetroChina at $446 billion USD, behind the ExxonMobil at $511 billion. China Mobile is fourth at $398B.
There are 3 US companies in the top 10 (ExxonMobil, GE #3 at $413B and Microsoft #6 with 327B). Royal Dutch Shell and Gazprom (Russian with $253B) round out the top 10. In other words, there is only one [true] European country represented.
Of course, this is just a snapshot before a currency revaluation, a downward shift in oil prices [what?] or another Enron were to occur. Nonetheless, it speaks to the prospective valuation of future earnings.
Another interesting slice of the top 10 shows that 5 of the companies are in Petrol & Gas, 3 are financial institutions (including GE which is classified as diversified financials by Fortune, but go figure), and 1 each for computer software & telecom.
On another angle, and not to be forgotten is the size according to sales… The Fortune 500 is still widely dominated by US companies (162) with Japan (67) #2 and France at #3 (with 38), just ahead of Germany (37) and England (33). Six of the top 10 are US and the first Chinese company in the Fortune 500 is Sinopec at #23, albeit with the fifth highest sales growth. But, one can expect the composition of the top 100 to change dramatically over the course of just the next five years.
Of note, tracing back the data from Fortune 500, as limited merely to US companies, there are now 4 financial-related companies in the Fortune 500 top 10, as opposed to just one basically since 1955 (always the same company, GE which, naturally, couldn’t always be considered a financial company). Since 1955, there have been between 3 and 4 oil & gas companies year in and year out, with communications and computer (IBM) rounding out the top 10 historically.
For an interesting blog and further reading about the shifting balance of power, visit Global Power Europe (link no longer available). Plenty of commentary and numbers on the world balance and the need for a stronger, united Europe. I also enjoyed this post from America vs the World, a subjective listing of the International Power Rankings dating to last year ,but still pertinent. Last posting on the topic was August 2006. I loved the fact that the Football World Cup is included in the concept. Note to Gordon: time to update! Meanwhile, thanks to Gordon, I found this link to an IHT article [defunct link] referring to Paris’ perception of the US and the terminology of ‘hyper power.”‘
And for a thread that seems plentiful and dynamic, try the World Affairs Board, Whose Who… Power Ranking [defunct link]. An interesting point: can a superpower be a power if a large portion of its population remains illiterate?