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China's top 500 manufacturing businesses were announced for the first time on Saturday by the National Bureau of Statistics (NBS) in an effort to identify role models for the country's briskly expanding 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 employee numbers.

The top 500 generate approximately one third of total revenues and capital but employ less than 10 percent of workers, NBS sources said.

The top 10 enterprises are Baosteel, First Automobile Works, Dongfeng Motor Corporation, Lenovo, Haier Group, Motorola China, Shougang Group, Anshan Iron and Steel Group Corporation, Tangshan Iron and Steel Group Corporation and Wuhan Iron and Steel Group Corporation.

Most of the top 500 are drawn from just five sectors: telecommunications, IT and electronics product manufacture; transportation and communication equipment manufacture; fertilizer raw material and chemical product manufacture; ferrous metal smelting and 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," said Liu Fujiang, deputy director-general of the Department of Industry and Transport Statistics of the NBS. "Also, China's manufacturing sector is already fully market-oriented."

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 current increasingly overheated construction of infrastructure it was required that scientific development be emphasized and blind corporate development avoided, observed Ou Xinqian, vice-minister of the National Development and Reform Commission.

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

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 the industrial layout and to perfect the economic structure was the top priority for China's further economic growth and the development of leading enterprises.

As for the manufacturing industry more effort needed to be exerted 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," Ou stressed "Chinese companies should enhance their capabilities in market-oriented R&D and develop their own brands," emphasized Ou .

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

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

(China Daily August 21, 2006)