The United States and China host various competing companies with a global reach aiming to assert dominance in multiple sectors. However, U.S. firms appear to be prospering, registering high valuations.

According to data compiled by Finbold, the top ten U.S. publicly traded companies have a cumulative market capitalisation of $12.82 trillion as of December 21, 2021. The valuation is at least five times more than China’s top ten counterparts that have a market capitalisation of $2.54 trillion.

Tech giant Apple ranks top with a market cap of $2.7 trillion, followed by Microsoft at $2.4 trillion, while Alphabet is third at $1.8 trillion. Amazon ranks fourth at $1.6 trillion, followed by Meta at $905.3 billion.

Other companies with a high valuation in the U.S. include Tesla ($903.7 billion), Nvidia ($690.7 billion), Berkshire Hathaway ($648.6 billion), United Health ($455.6 billion), and JPMorgan Chase ($454.9 billion).

In China, Tencent ranks as the largest firm with a valuation of $529.2 billion, followed by Kweichow Moutai at $401.2 billion, with eCommerce giant Alibaba ranking third at $311.7 billion. ICBC is in the fourth spot with a market cap of $242.2 billion, followed by CATL at $220.7 billion.

Other Chinese companies with a high valuation include CM Bank ($200.2 bank), China Construction ($171.1 billion), Meituan ($166.8 billion), Agricultural Bank of China ($157.4 billion), and Wuliangye Yibin ($140.9 billion).

The U.S. dominated by tech companies 

The report acknowledges that the U.S. companies are dominated by technology companies that have experienced significant growth over the recent months. According to the research report:

“The valuation comes after the technology sector experienced unprecedented growth inspired by the pandemic. The industry’s stocks gained prominence as their products offered consumers the means to navigate the lockdowns initiated to control the health crisis.” 

The U.S. companies are also backed by a large domestic market, a large GDP, and a homogenous language. Interestingly, despite China boasting of a significantly higher population, the domestic market seems to have minimal influence on the companies’ valuation.