Recently, China unveiled the latest rankings of its 500 largest private enterprises. The minimum annual revenue required for a company to enter the list surpassed 27 billion yuan ($3.78 billion). In contrast, the total R&D spending of all companies on the list exceeded one trillion yuan, which highlights that China's private sector continues to grow stronger, more competitive and more resilient despite complex domestic and global conditions.
Enterprises are the "cells" of a market economy - the foundation of its vitality and also a key lens for observing China's economic development. The figures in this ranking reveal three clear trends in China's economy.
Workers operate at a production line of Chongqing Hwasdan Machinery Manufacturing Co, Ltd in Southwest China's Chongqing municipality, February 22, 2025. (File photo: Xinhua)
Changes in the entry threshold reflect rising strength
When the results were published, the "admission score" for entry attracted widespread attention. Since the All-China Federation of Industry and Commerce first released the top 500 list in 2011, the minimum annual revenue required for entry has risen steadily, climbing from 5 billion yuan to more than 27 billion yuan this year. Beyond revenue, asset sizes have also expanded rapidly. In 2024, the total assets of the top 500 reached 51.15 trillion yuan - about nine times the level in 2011.
This shift in the threshold reflects a broader rise in the "waterline" of development. With stronger foundations and wider resources, the private sector has become a major driver of China's steady economic growth and rising national strength. Today, China's private economy has reached a significant scale, holds a vital position in the overall economy and continues to expand in terms of the number of market players, providing solid confidence in the country's long-term prospects.
A staff member works at a new material firm in the Hongqi Canal Economic and Technological Development Zone of Linzhou City, Central China's Henan Province, March 19, 2025. (File photo: Xinhua)
Shifts in rankings reveal structural change
The rise and fall of different types of enterprises on the list act as a barometer of industrial frontiers and development trends. Several companies engaged in the production of new energy vehicles recorded rapid revenue growth, jumping in ranking, while newcomers from fields such as new materials, new energy and next-generation information technology entered the top 500 for the first time. One striking feature of this year's list is the sharp increase in the share of enterprises from strategic emerging industries.
Behind these changes lies an apparent reality: the top 500 private enterprises are getting "newer," which highlights China's economic restructuring and upgrading. By strengthening internal capabilities and unleashing endogenous momentum, China is building new engines for growth. In 2024, the value added of China's new industries, new business formats and new business models accounted for over 18 percent of the country's GDP, serving as a powerful driver of development.
A robot works at VIE Science and Technology Co., Ltd. in Diankou Town of Zhuji, East China's Zhejiang Province, April 7, 2025. (File photo: Xinhua)
Rising investment signals growing momentum in innovation
The top 500 private enterprises represent the most competitive large firms among hundreds of millions of business entities. Their strength lies not only in visible scale but also in their sustained and often less-visible commitment to investment. Increasingly, in the face of global headwinds, private enterprises are shifting from passive cost spending to proactive strategic investment, using innovation to break through bottlenecks. In 2024, the top 500 had an average R&D intensity of 2.77 percent, with more than one trillion yuan invested in R&D by over a million researchers.
Leading players exemplify this commitment: tech giant Xiaomi invested more than 100 billion yuan in R&D over the past five years, carving out a place in the fiercely competitive auto market; battery manufacturer CATL has made continuous breakthroughs in technologies such as ultra-fast charging batteries, driving growth across the entire supply chain; multinational technology conglomerate Tencent has made targeted investments in artificial intelligence models, helping industry-specific applications take root in finance, healthcare and beyond. Long-term innovation strategies and patient accumulation are building enduring "moats" for enterprise growth, forming a distinctive landscape within China's innovation-driven economy.
Those who observe the trends see clearly, and those who act on them move wisely. While China's economy still faces risks and challenges in the near term, its solid fundamentals - strong capacity, optimized structure, and powerful growth drivers - remain unchanged. With confidence, determination, and a focus on pursuing new heights, private enterprises are well-positioned to shine on the new journey ahead. The private economy in China remains robust, with broad prospects and vast potential.