Over half of Chinese companies listed on Fortune 500 have operations in Pakistan

More than half of Chinese enterprises listed on the Fortune Global 500 for 2021 have invested or conducted business cooperation in Pakistan, demonstrating Chinese companies’ confidence in Pakistan’s future economic development.

The Fortune Global 500 is an annual ranking of the top 500 enterprises worldwide as measured by business revenues.

According to the latest report, out of the 143 Chinese companies on the list, more than half have operations in Pakistan.

The number of Chinese companies, including those from the Hong Kong Special Administrative Region (SAR) and the island of Taiwan, stood at 143 on the Fortune Global 500 list for 2021, making China No.1 on the list for a second consecutive year.

In 2020, the number of Chinese companies on the list stood at 133, the first time China’s number surpassed the US.

Chinese companies on the list, that have conducted operations in Pakistan, come from diverse sectors including energy, infrastructure, automobile, and telecommunication. Some of these companies have also participated in the China-Pakistan Economic Corridor (CPEC) projects.

China’s State Grid ranked second on the list, right behind the US-based retail tycoon Walmart. Two other Chinese companies made it to the top 10, namely China National Petroleum and Sinopec Group and State Grid Corporation of China. State Grid Corporation of China is also the executor of the ±660kV Matiari-Lahore high-voltage direct current (HVDC) transmission project.

The project was recently recognized by Pakistan’s Energy Minister Hammad Azhar as a safeguard to the power system of the country.

SAIC Motor, ranking 60 on the list, recently declared that the group will scale up its vehicle manufacturing plant in Pakistan in collaboration with its local joint venture. Its plant’s renovation is expected to complete by the end of this month, and locally produced vehicles will soon enter the Pakistani car market.

China’s FAW Group, ranking 66 on the list, is the co-launcher of Pakistan’s first locally assembled Chinese car, FWA-V2.

Sixty-one Chinese private enterprises made it to the prestigious list as well. Three internet-related companies, which made it to the Fortune Global 500 list, have business ventures in Pakistan.

In 2018, Alibaba acquired Pakistan-based online retailer Daraz Group, which helped develop the country’s e-commerce market.

In terms of mobile phone companies, the rankings of Huawei, Lenovo, and Xiaomi have also improved. Huawei rose from 49th position last year to 44th this year. Lenovo Group ranks 159, up 65 places from last year.

Huawei, ranking 44, has been working with Pakistan’s Higher Education Commission (HEC) since 2015.

Overall, Chinese companies’ revenue and profitability remained largely stable.

The average profit of 135 Chinese mainland companies on the list was about $3.54 billion.