China: #2 Economic Power -- Absolutely Nothing To Do With The Bakken

Some time ago I was taken to task when I suggested it was only a matter of time -- very short time -- when China would overtake the United States as the #1 economic power in the world. In fact, by my criteria, it already has. I use the instantaneous slope of the curve as my criteria. Be that as it may. China is now #2 by generally agreed-upon criteria.

Two years after eclipsing Japan as the world's second-largest economy, China stole the number-two spot on the Fortune 500 list of the biggest global companies from its Asian rival. 

Two data points:

Although the US still hosts the lion's share of Global 500 corporations, no country has lost more companies during the last decade. There are 132 US-headquartered businesses on this year's list, down from 197 a decade ago.

And,

China added 12 companies to the list this year, while the number of European firms fell to 161 amid the eurozone debt crisis, from 172 in 2011.

"One of the more remarkable shifts has been in the number of Chinese companies on the list," Fortune said, pointing out there were only 11 Chinese firms on the Global 500 in 2002, while the number of Japanese companies has fallen from 88.

China has 73 companies on the list compared to Japan's 68. 

Back-of-the-envelope calculations: Japan's drop from 88 to 68 is a 23% drop. The US drop from 197 to 132 is a 33% drop. Wow. In that period of time (one decade, China has gone from 11 companies to 73 companies, close to 300% increase).  If 30 US companies drop off the list and 30 Chinese companies make the list, China is #1 based on this one criterion.

I think China still uses a lot of coal.