China is now neck and neck with the U.S. in Fortune Global 500 members, reflecting a shift in economic power that lies at the heart of trade tensions between Beijing and Washington.

This year’s ranking of the world’s 500 largest businesses by year-earlier revenue includes 119 Chinese companies, up from 111 in 2018. U.S. enterprises declined to 121 from 126. Two decades ago, Chinese entries numbered in the single digits. So “though China has a stronger presence near the bottom of the roster than the top, it’s clear where the momentum is,” wrote Clifton Leaf, editor-in-chief of Fortune magazine.

Among the 39 Chinese companies in this year’s top 150, all but five are state-owned enterprises. They include banks, automakers, and such energy giants as Sinopec Group, China National Petroleum and State Grid, which have solidified their positions in the top 10.

Major Chinese major technology companies are rapidly moving up the ladder, with Alibaba Group Holding and Tencent Holdings climbing 118 and 94 rungs to No. 182 and No. 237. Hong Kong-listed Xiaomi debuted on the list at No. 468.

These patterns highlight core issues underlying the Sino-American trade war: China’s rising economic prowess, a technology race where it is rapidly catching up, and a clash of economic paradigms.

Washington accuses Beijing of unfair trade practices including forced technology transfers, theft of trade secrets, and state subsidies. The two sides, having slapped punitive tariffs on many tens to hundreds of billions of dollars in each other’s goods over the past year, are struggling to reach a trade agreement.

Huawei Technologies, which has fallen victim to the tensions, moved up 11 notches to No. 61 this year. But founder and Chairman Ren Zhengfei said in June that revenue will be about $30 billion lower than forecast in 2019 and 2020 on such recent U.S. measures as barring American companies from supplying it with components.

American tariffs on $250 billion in goods from China are also sapping its economic momentum, presenting an obstacle to Chinese companies’ climb.

And although Chinese technology players are quickly catching up, only Huawei made the top 100, where American giants including Apple, Amazon and Google parent Alphabet sit comfortably.

The U.S. is also maintaining its dominance when it comes to the next generation of tech companies. It is home to 49% of the world’s unicorns — private companies with valuations above $1 billion — in a June report by venture capital research firm CB Insights. Second-place China’s share fell to 25% from 28% a quarter earlier.

The Fortune Global 500 list is a companion to the Fortune 500 list, which focuses solely on U.S. companies.