State-owned oil giant, Sinopec generated 2.55tr yuan ($402bn) in revenue last year.
In a list of the nation's top 500 companies, China Enterprise Confederation and the China Enterprise Directors Association have declared Sinopec Group China's largest company by revenue in 2011.
The state-owned oil company generated 2.55 trillion yuan ($402 billion) in revenues last year, with second place going to rival China National Petroleum Corporation (CNPC which also reported revenues at over two trillion yuan ($317 billion).
The next eight largest companies were comprised of state-owned firms in other sectors, including: the State Grid, Industrial and Commercial Bank of China, China Construction Bank, China Mobile, Agricultural Bank of China, Bank of China, China State Construction, and China National Offshore Oil Corporation. Combined, the top 500 companies contributed a total of 44.9 trillion yuan ($7.1 trillion) towards the nation's GDP.
Although these economic powerhouses continue to generate revenue, deputy-head of the State-owned Assets Supervision and Administration Commission, Shao Ning, believes these companies still need to modernise their operations. Shao believes that in the age of globalisation, a country's competitiveness relies on that of its major companies. “Compared to China's status in the world economy, Chinese companies are still weak, lack innovation, and command no major international influence,” he said. Shao, a fervent advocate of reform, also pointed out the need for state-owned enterprises to improve management and innovation.