The National Bureau of Statistics (NBS) unveiled China's top 500 manufacturing powers for the first time on Saturday, in a bid to create role models for the country's rapidly developing economy.

Assessing the country's 250,000 enterprises with annual incomes exceeding 5 million yuan (US$625,000), the NBS ranked companies on core business revenues, total assets and number of employees.

The top 500 generate about one third of total revenues and capital, but employ less than 10 per cent of workers, sources from the NBS said.

Most of the top 500 are in just five sectors: Telecommunications, IT and electronics product manufacturing;transportation and communication equipment manufacturing; fertilizer raw material and chemical product manufacturing; ferrous metal smelting & rolling (iron and steel) and textiles.

"The motivation driving us to compile the list is that China's manufacturing sector is crucial, representing the bulk of the country's production forces. Also, China's manufacturing sector is already fully market-oriented," said Liu Fujiang, deputy director-general of the Department of Industry and Transport Statistics of the NBS.

While the top 500 are ahead of the pack domestically, they still have a way to go to match global business giants, Liu pointed out.

In light of the increasingly overheated infrastructure construction at the moment, scientific development should be emphasized and blind corporate development avoided, warned Ou Xinqian, vice-minister of the National Development and Reform Commission.

"It is not recommended that enterprises simply seek expansion in size and scale, without considering responsibility for the environment and society. Blind development just for the sake of it may backfire," Ou warned.

Large enterprises should play a positive role in saving natural resources by restricting the development of high energy-consumption industries, Ou said.

The vice-minister said working out how to adjust industrial layout and perfect the economic structure is the top priority for China's further economic growth and for the development of leading enterprises.

As for the manufacturing industry, more effort should be spent enhancing research and development (R&D) capability and boosting brands, according to Ou.

"Instead of just serving as equipment manufacturers, Chinese enterprises should pay more attention to innovation, patents and technology development. Chinese companies should enhance the capability of market-oriented R&D, and develop their own brands," Ou stressed.

Zhao Weichun, vice-president of Beiqi Foton Motor Co Ltd, agreed that innovation was essential.

"Without self-developed technologies and products, we will have no way to be national leaders, let alone world powers. The experience of China's auto industry has demonstrated clearly that we can never succeed in trading core technology for market share," Zhao said.

Source: China Daily