Firms moving up Fortune's ladder

China's growth slowed to 7.7 percent in 2013, 0.1 percentage point lower than a year before and at the slowest pace since 1999.

Luo said due to the global financial turmoil, the profitability of Chinese companies has been squeezed further by rising labor costs and commodities prices, as well as a rising yuan.

"Some SOEs saw their profits nibbled by private competitors as they lost their monopoly status," he said.

Seven Chinese companies made their debut in the rankings, including Nanjing-based Pacific Construction Group Co Ltd, which was ranked 166th with annual sales of $59.6 billion in 2013.

Shenzhen-headquartered network technology giant Huawei Investment Holding Co Ltd moved up 30 notches to 285 this year.

Although Chinese companies represent 16 out of the 20 fastest climbers on the list, Luo said that bigger scale does not necessarily translate into competitiveness.

"It's not the bigger, the better," he said, adding that companies bent on innovation rather than short-term profits will achieve sustainable growth.

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