China in the Rankings of the World’s Largest Corporations: Shifts in Its Participation in the International Division of Labor

Abstract

The article tests the hypothesis that China’s transition to a knowledge-based post-industrial society requires the creation of large national corporations in many industries, and this should be reflected in the rankings of the largest corporations in the world. The analysis methodology is based on the principles of a systematic approach using historical, analytical, mathematical-statistical, and cartographic research methods. The shifts in the industry structure, nationality, and location of the headquarters of the world’s largest corporations by revenue for the period from 1995 to 2021, as well as the goals and strategy of Chinese companies going abroad, are analyzed. It has been revealed that the Chinese government is forcing the formation of large corporations, both state-owned and private, through mergers and acquisitions of numerous enterprises from the same and different industries. It has been revealed that the major activities of the largest Chinese corporations are concentrated inside China to protect domestic markets and national industry from the world’s largest TNCs. Every year China lets foreign companies enter and invest in new sectors of its economy, but only after national firms in the relevant industries have prepared to compete with world leaders. In the rich and sophisticated markets of developed countries, Chinese TNCs are primarily focused not on production, but on the promotion of national products. In developing countries, the largest corporations are building power plants, infrastructure, and basic industries’ enterprises to achieve the goals of the Belt and Road Initiative. As a result, in the international division of labor China is moving from a “world factory” to an innovative leader.