In 2023, however, China lost its top spot on the Fortune Global 500 list, raising questions about the future of global economic dominance. This shift in power raises the question of whether the US and China will continue to exchange positions in the coming years. Despite China’s previous dominance, there are six reasons to believe that it is unlikely to recover the top spot on the list. This presents an opportunity for US, European, and Japanese firms to exploit China’s fundamental weaknesses in the future.
In 2019, it was predicted that China would surpass the US in terms of the number of companies on the Fortune Global 500 list. At that time, this prediction seemed bold, given that the US had held the number one position since the list’s inception in 1995. Additionally, the US economy was significantly larger than China’s, making it a formidable opponent. However, just one year later, in 2020, China did indeed top the list with 124 firms, edging out the US with 121. This shift in power highlighted the potential for China to dominate the global stage.
In 2023, the situation changed once again as China lost its top spot on the list. This change raised questions about the future of global economic dominance and the ongoing struggle between the US and China. Despite China’s previous dominance, the US, European, and Japanese firms have an opportunity to exploit China’s fundamental weaknesses in the years ahead. This shift in power presents new opportunities for global economic competition and the potential for a new leader to emerge.