Focusing on growth markets whether they are selected geographies, specific industries or sizes of companies is the goal of most companies these days. With growth slowing in the US and across Europe, most eyes are turning to Asia and with China as potentially the biggest slice of the pie. And for good reason.
The Global 5000 was started with revenue in 2006 followed by continuing updates every year. As a starting point in 2006, there were 3,706 companies with $33.4 billion (USD) in revenue. Companies in China were 59 of those or 1.6% of the total. They had $1 trillion of revenue or 3% of the total.
Fast forward to the current period and we find 108 China based companies in the Global 5000 with $3.2 trillion of revenue now representing 8.6% of the total … and it shows no signs of slowing down.
Compare this with European countries which represented 32.8% of the revenue back in 2006 and is exactly the same portion of the market as today. If one were focused on a region (like Europe) growth over time would keep pace with the overall market growth, but capturing some of that potential would be hard to come by.
Hence the interest in areas like China as evidenced by the movement in The Global 5000 companies — the largest in the world.