Comparison Of Private Enterprises In China And Russia
Russia's private enterprises are generally higher than the profitability of
private enterprises in China, Chinese companies showed a typical "high growth - low margin"Although in many countries, a vibrant small business job creation and poverty alleviation is the main force, but the accumulation of wealth creation and profits in most major corporations. This is in the United States, China, Russia are no exception.
In these large enterprises, private enterprises between China and Russia's development is particularly interested because the two countries, their economies and being continually the planned to a full market economy. We want to look at large enterprises in China and Russia, particularly the development of private enterprises. Private enterprise about wealth creation and economic development in the role and function areas, as well as private enterprises compared with the performance of state-owned enterprises.
400 large companies
As the economies of scale, compared with U.S. companies, Chinese enterprises and the size of Russian enterprises are still small. In 2009, U.S. GDP was 14.26 trillion U.S. dollars, is about 5 trillion to 3 times the size, is 1.23 trillion U.S. dollars in the Russian economy more than 10 times the size.
However, a proportion of China and the U.S. agreed that the largest 400 companies consolidated revenue-GDP ratio, the two countries have reached 70%.
From 2004 to 2008, China's largest 400 companies in the consolidated income account for 70% of China's GDP to 80% peak in 2006. But in 2007, that figure plummeted to 70% or less, followed by rapid recovery in 2008. Among these 400 companies, some of Globalization has been presented, such as Huawei and Lenovo, to become the new vanguard of China's multinational corporations. Some are active in the domestic market performance of large state-owned enterprises rooted, such as China Mobile and Sinopec (600 028).
Russia's situation is more similar. 400 strong enterprises in the Russian share of GDP continued to increase, but Russia has a total of 400 strong enterprises accounted for 55% of the country's GDP.
Also 400 large companies, the average size of Chinese companies than from Russia. However, in addition to scale, in 2003 and 2008, the entire 400-strong list, the Russian companies, the average growth rate of 35.76%, China 24.65%; while the average corporate profit margins, the Russian company is 10.5%, Chinese companies was 4.7 %.
As expected, the Chinese companies show a typical high growth rate - the phenomenon of low profit margins. 2003 ~ 2008, Chinese companies averaged 4.7% profit margin, the United States reached 5.02%, a growth rate of 24.7% of Chinese companies, U.S. companies only 8.9%. If not the 2008 financial crisis adversely affected the United States, more profitable U.S. companies will probably be more beneficial.
Experts have low profit margins on the phenomenon of Chinese companies raised a number of theories. For example, the traditional value chain in the middle of role play Chinese companies, especially manufacturing companies, typically low profit margins. Chinese companies because the lack of capacity and well-known premium brands. On the positive side, it was insisted, many Chinese companies have been taken by way of accelerated depreciation, with a large number of rapid expansion of capital expenditures.
This does not take into account the ownership of 400 large companies, the number of private enterprises between China and Russia is an interesting question. Overall, in terms of quantity, the Russian 400 in 314, while China has only 72; percentage of revenue, Russia 59%, China's income of these private companies only to 16% share.
Russia's more prominent private enterprises
What we call "private enterprise" refers to the company's majority owned by individuals other than states and hold parties, corporate decision-making from state control.
However, this figure dropped to 29.5% in 2007. However, there are three sectors: oil and gas industry, the tobacco industry and non-ferrous metal smelting and rolling processing industry, is still firmly in state hands. However, since the financial crisis in 2008, this trend was reversed.
"People back into the country" phenomenon can be cured in many short-term economic pain, but it would be the Chinese economy and the competitiveness of Chinese companies have long-term harmful effects, not yet known. China's private enterprises since the 90s of last century economy began to transition to a market economy has been vibrant, but also a little true and correct, that is some of the best state-owned enterprises in China have been showing greater and greater momentum. In the past 30 years, private enterprises and state-owned enterprise model go hand in hand seems to have time-tested in China.
Through large-scale privatization process, the private enterprises in Russia has many economic areas play a leading role. Now the question is, in these areas, China will in the next 20 years, continues to maintain a distinct pattern of growth with Russia?
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