The giant Chinese companies shaping the world's industries

Published February 9, 2019
The merger by Alstom and Siemens was vetoed by the European Union on Thursday, but concerns about the overwhelming power of vast, often state-backed Chinese companies is not limited to the rail industry. — File
The merger by Alstom and Siemens was vetoed by the European Union on Thursday, but concerns about the overwhelming power of vast, often state-backed Chinese companies is not limited to the rail industry. — File

It was fear of being dominated by a Chinese behemoth that sparked an attempt by large French and German rail companies to join forces to create a European industrial champion.

The merger by Alstom and Siemens was vetoed by the European Union on Thursday, but concerns about the overwhelming power of vast, often state-backed Chinese companies is not limited to the rail industry.

Here are some of areas in which Chinese companies control a large piece of the global market:

Rail

China's state-backed CRRC is the world's largest train manufacturer, with locomotives and wagons ordered across the globe from Boston to Philadelphia, Cambodia to Colombia, and customers including the iconic London Underground and Germany's Deutsche Bahn.

Its annual revenues of 26 billion euros ($29 billion) alone outweigh the three Western heavyweights Bombardier, Siemens and Alstom, each of which brings in around nine billion a year.

Agrichemicals

The state-owned ChemChina became one of the world's seeds and pesticide producers when it acquired Swiss pesticide giant Syngenta for $43 billion in 2017, putting it in competition with Monsanto and DowDupont.

It was the biggest overseas acquisition by a Chinese firm yet, ahead of the $15.1 billion purchase of Canada's Nexen Energy by China's state oil firm CNOOC in 2013.

ChemChina also controls Italian tyremaker Pirelli and German machinery firm KraussMaffei.

Energy

The state-run China National Nuclear Corp (CNNC) launched its locally developed Hualong One nuclear reactor in 2015 to compete with French and US models, selling to Argentina and Pakistan.

Chinese solar panel manufacturers Jinko, Trina and Solar dominate the global market.

And Chinese oil companies — CNOOC, CNPC and Sinopec — are investing heavily even as their global rivals cut spending.

Aviation

China's state-owned plane-maker Comac expects to deliver its first home-made passenger jet to a customer in 2021, as it seeks to challenge the dominance of Boeing and Airbus.

The company says it has received a thousand orders for its 168-seater C919 plane.

Food

The state-owned food giant COFCO is playing an increasing role in world grain trading after purchasing the agricultural arm of Singaporean commodities trader Noble as well as Dutch Nidera.

China's WH Group became the world's largest pork producer in 2013, when it purchased major US pork and hot dog producer Smithfield Foods Inc.

Drones

Founded by a Chinese university student in 2006, DJI has become the world's top civilian drone maker with 70 per cent of the market, outpacing its French rival Parrot.

Smartphones

Chinese smartphone makers are taking a larger slice of the global market, with Huawei at 15 per cent, Xiaomi 8.7 per cent and Oppo 8.1 per cent.

Phone sales by Huawei and Oppo surged by 30 per cent last year, defying a downward trend that hit rivals Apple and Samsung.

Home appliances

China's Haier Group is the world's leading manufacturer of home appliances with around 10 per cent of the market, ahead of rivals Whirlpool and Electrolux.

Haier even purchased the appliances arm of US giant General Electric in 2016.

Batteries

Chinese firm CATL, which supplies batteries for car titans Volkswagen, Ford and Daimler, is battling with Japan's Panasonic for the world's lithium electric car battery top spot.

Its production capacity will increase fivefold by 2020 due to a mammoth new factory in China, and the firm has announced a huge factory in Germany to supply European customers.

Freight

The state-owned Cosco Group is the world's third-biggest shipping company with 50 container ports across the globe, including Greece's Piraeus and Spain's Bilbao.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

‘Source of terror’
Updated 29 Mar, 2024

‘Source of terror’

It is clear that going after militant groups inside Afghanistan unilaterally presents its own set of difficulties.
Chipping in
29 Mar, 2024

Chipping in

FEDERAL infrastructure development schemes are located in the provinces. Most such projects — for instance,...
Toxic emitters
29 Mar, 2024

Toxic emitters

IT is concerning to note that dozens of industries have been violating environmental laws in and around Islamabad....
Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...