Chinese Economics Thread

siegecrossbow

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Domestic chips is coming and China is replacing Japan as the high tech exporter in Asia

China Breakthroughs: Charging ahead on "Made-in-China" chip technology
Editor: Qian Ding 丨CCTV.com

10-25-2017 20:17 BJT

By Tom McGregor, CNTV Commentator

The smartphone is an amazing device and along with its notable advances in 4G networks, since users can tap into the internet, watch a film, or instant message friends while even walking in a crowded street.

Such technology has transformed everyone's lives and the Chinese government is helping homegrown hi-tech firms to develop further upgrades on hardware and software for smartphones, as well as creating "Made-in-China" chips along with related technologies.

Speadtrum Communications Inc., a chip-maker for state-owned phones, plans to invest over 300mn. RMB ($US46.4mn.) from 2015 to 2020.

"Chip-making is critical technology for many areas, including smartphones," China.org quotes Ye Tianchun, director of the Institute of Microelectronics, as saying. "China is set to grow a strong chip sector, so we don’t have to beg other countries for key chip-sets."

Domestic hi-tech exports gain momentum

China has long been recognized as a low-tech manufacturing market, while Japan has captured global acclaim producing hi-tech consumer gadgets.

Yet, the tables have turned in recent years, which means Chinese smartphones manufacturers - Huawei, Xiaomi, ZTE, Meizu and Oppo - have become widely-popular for consumers worldwide.

And for more proof that Chinese hi-tech companies are overcoming Japanese firms in international rankings and status, the 2015 Asian Economic Integration report published by the Asian Development Bank disclosed that China had surpassed Japan to emerge as the number one hi-tech Asian exporter in 2014.

China's share of Asian exports had risen to 43.7 percent in 2014, compared to 9.4 percent in 2000. Japan's share had plunged to 7.7 percent, from 25.5 percent in 2000.


China's exports of low-tech goods had accounted for 28 percent of its export market in 2014, compared to 41 percent in 2000.

Moving forward to 2016 the figures are even better. According to statistics compiled by the World Bank, China is the leading exporter of hi-tech devices, totaling over US$560bn for 2016. In comparison, Japan exported hi-tech goods valued at US$105bn for the same year.

Nonetheless, many Chinese companies are not satisfied with prior success and they hope to enjoy even greater success in the long-term future.

Chinese smartphone manufacturers are looking ahead to adapt better software and hardware to be built into their smartphone devices, as well as to provide deeper support for domestic companies to develop new chips, so they can stand at the forefront to challenge their bigger global rivals, such as Qualcomm and Intel.

Huawei makes bold chip move

Shenzhen-based Huawei Technologies, a telecom equipment maker and China's largest smartphone vendor by shipments, has demonstrated support for "Made-in-China" chips by introducing a homemade processor, Kirin 950, installed in it's flagship device, Mate 8 that was introduced to the market in 2015.

HiSilicon Technologies Co. Ltd., a chipmaking subsidiary of Huawei, produces the Kirin 950 that boasts of faster processing speed and a power efficient design.

The Kirin series has already enjoyed remarkable success and had integrated into Mate 9 and 10 series from 2016 to 2017.

2017102520154121734.png

(Huawei’s Mate 10 smart phones, newly launched on Oct. 20, 2017 Photo from Xinhua)

HiSilicon Techonologies remains optimistic and has emerged as one of the leading contenders in the global mobile chip market, which include - US-based Qualcomm Inc. and Taipei-based MediaTek.

The new chip has already grabbed the hearts of Chinese consumers. Huawei had witnessed 81 percent year-on-year growth of sales in China in 2015, according to Canalys research firm.

Mobile e-commerce to benefit

Creating new chip technology offers numerous advantages. For example, cyber-attacks have become a rising concern for mobile online consumers since users place confidential personal information at risk when transferring data to legitimate online vendors.

Chinese technology firms are developing more enhanced chips to combat cyber-crimes, while increasing processing speeds. Huawei is a major player in the field. Such advances can add stronger momentum to the nation's mobile e-commerce market.

The research firm, Forrester's, reports that, China had surged to the world's biggest online economy in 2013. In that year alone, 25 percent of Chinese residents had shopped from smartphones weekly, and 69 percent of Chinese purchased at least one item from a mobile device.

The figures had surged to even greater heights from 2014 to 2016. And rising revenues from Chinese e-Commerce sales are expected to continue on for 2017 and the years ahead..

"Made-in-China" chips for the masses

Accordingly, with strong government support, Chinese hi-tech companies have added incentive to build more R&D (research and development) centers to develop innovations in the domestic chip industry.

Some hi-tech firms can boost their profit margins by developing new chip technologies that can be adapted to mobile devices.

By deepening endeavors to upgrade hardware chips or create new ones, this would not guarantee big money success overnight.

Nevertheless, chip technology companies should remain persistent, to work hard, take risks and conduct experiments so that they can enjoy a payoff in the long run.

[email protected]

(The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com. )

Just an aside --Tom McGregor is also an active answerer on Quora for China related topics.
 

AssassinsMace

Lieutenant General
Around a year ago there was an article how China was stockpiling oil reserves to the point of complaining that China wasn't going to be buying oil during global recessions and the price of oil would stay low thus it would be harder for the world to recover.

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CNN has an article on the death by gravity of a young daring Chinese skyscraper climber who posts his antics on the internet. The headline basically asks who's to blame for his death...

Then don't sell China natural gas...
 

Equation

Lieutenant General
Around a year ago there was an article how China was stockpiling oil reserves to the point of complaining that China wasn't going to be buying oil during global recessions and the price of oil would stay low thus it would be harder for the world to recover.

Please, Log in or Register to view URLs content!


CNN has an article on the death by gravity of a young daring Chinese skyscraper climber who posts his antics on the internet. The headline basically asks who's to blame for his death...

Then don't sell China natural gas...

Antics news like this will always find a stupid excuse to blame China for anything.
 

PiSigma

"the engineer"
Around a year ago there was an article how China was stockpiling oil reserves to the point of complaining that China wasn't going to be buying oil during global recessions and the price of oil would stay low thus it would be harder for the world to recover.

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CNN has an article on the death by gravity of a young daring Chinese skyscraper climber who posts his antics on the internet. The headline basically asks who's to blame for his death...

Then don't sell China natural gas...
Journalists are stupid people with typically barely passable grades. Just look at Dave mujamdar, barely made it to UofCalgary for a English degree.

China stockpiles crude now because oil is cheap. Why would they want to buy when it is 100$ /barrel. Journalist don't understand economics, not even the ones at Blomberg or WSJ.

Also, there are over 200 grades of oil, the entire oil market works off of differentials and not total costs based on Brent or wti.
 

Equation

Lieutenant General
Journalists are stupid people with typically barely passable grades. Just look at Dave mujamdar, barely made it to UofCalgary for a English degree.

China stockpiles crude now because oil is cheap. Why would they want to buy when it is 100$ /barrel. Journalist don't understand economics, not even the ones at Blomberg or WSJ.

Also, there are over 200 grades of oil, the entire oil market works off of differentials and not total costs based on Brent or wti.

It's not that some of them care to research the facts, it's that they look for any sensationalism to match their prejudice narrative to post their propaganda.
 

PiSigma

"the engineer"
It's not that some of them care to research the facts, it's that they look for any sensationalism to match their prejudice narrative to post their propaganda.
That is true. Just like any media source. You write what u get paid to write. And if Pepsi paid for advertising, then sugar is the best thing for you.
 

Equation

Lieutenant General
Looks like the One Belt One Road initiative are gaining some ground internationally.:)

StanChart and China's Ant Financial sign 'Belt & Road' partnership
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December 18, 2017


2017-12-18T105838Z_1_LYNXMPEDBH0SH_RTROPTP_3_STANCHART-RESULTS_original.jpg

FILE PHOTO: People pass by the logo of Standard Chartered plc at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo
LONDON (Reuters) - London-based bank Standard Chartered and Ant Financial, the payment affiliate of Alibaba Group Holding Ltd have agreed to collaborate in countries along China's 'Belt & Road' strategic initative.

StanChart said on Monday the two companies will work to increase access to financial services in countries along the route, without giving details on how the partnership will work.

China's Belt and Road initiative aims to recreate the old Silk Road with massive infrastructure projects to connect China to Europe and beyond.

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now I read
Reviewing China's 2017 economic transformation
2017-12-18 22:21 GMT+8
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The transformation of China's economic development model this year has achieved many results and overcome many difficulties, said Liu Chunsheng from the Central University of Finance and Economics.

“Consumption plays the biggest part among the three driving forces of economic growth, and it contributed about 50 percent to China’s GDP growth this year,” Liu told CGTN.

“High-end equipment and intelligent manufacturing are taking a larger share, while the service sector has also experienced rapid and healthy development. China is the world leader in e-commerce, big data economy and sharing economy,” Liu said.

Many international economic organizations have expressed optimism towards the future of the Chinese economy in their forecasts.

The International Monetary Fund (IMF) has raised its expectations for the Chinese economy four times this year, with October’s prediction for China’s GDP growth as 6.8 percent in 2017 and 6.5 percent in 2018.

“There are a number of challenges still on the plate,” said Einar Tangen, Current Affairs Commentator for CGTN, “for example, poverty, pollution and systemic risk. On the other side, it’s about encouraging innovation in the future and creating real economy vehicles.”
 
now I read
All eyes on price of natural gas, coal ban efforts at NDRC briefing
2017-12-18 18:03 GMT+8
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China's National Development and Reform Commission (NDRC) held a press conference Monday in Beijing, outlining the country's macroeconomic figures for the month of November, and plans for how the central planner will move to prevent natural gas shortages.

As regulations banning coal-burning rolled out, many villagers have been left freezing in the cold due to the fading affordability of natural gas. The increase in demand and price of natural gas, has caused worry for some. Meng Wei, spokesperson for the NDRC, said during the briefing that the country has plans to address this issue, “We have outlined several mitigation plans. We will focus on working with major natural gas providers specifically, ensuring a regular supply and maintaining stable prices.”

Meng said the central planner would also try to keep the impact of the lack of supply of natural gas in check by implementing regulations to establish a better framework for constructive pricing as well as monitoring the purchasing of liquefied natural gas.

“We will try to effectively allocate surplus resources from the south to the north, to prioritize the people's needs of natural gas in northern provinces,” she said, adding that the commission would also try to bridge the supply gap by continuing to seek alternative energy sources, and coordinate with larger corporations to reduce their usage of natural gas, to better serve the needs of civilians.

Regular figures were also released on food and commodity prices and investment.

Meng Wei said the NDRC approved 11 fixed asset investment projects in November, and currently six more are seeking approval. The projects are worth a combined total of 72 billion yuan, or nearly 11 billion US dollars, mainly in the sectors of high tech, hydrology, renewable energy and social enterprise.

Food prices in November saw a marginal drop, and remained relatively stable. Eggs prices have gone up 9.3 percent year-on-year, but the increase has been countered by a 10 percent drop in the price of lean meat.

Commodities such as steel have seen a price increase, while precious metals such as copper, aluminum and lead remained comparably stable. Petroleum products including gasoline and diesel have gone up 4.54 and 9.05 points respectively compared to October.
 

Equation

Lieutenant General
Following Trump's report, China urges US to accept its rise
7ed20e1daa904b44b366d651376de645.jpg

FILE - In this Thursday, Nov. 9, 2017, file photo, U.S. President Donald Trump waves next to Chinese President Xi Jinping after attending a joint press conference at the Great Hall of the People in Beijing. China's main official news agency is warning U.S.-Chinese relations will face "more pressure and challenges" following President Donald Trump's decision to label Beijing a rival. (AP Photo/Andy Wong, File)
BEIJING (AP) — The Chinese government on Tuesday criticized U.S. President Donald Trump's decision to label Beijing a strategic rival and called on Washington to "abandon a Cold War mentality" and accept China's rise.

Trump's decision reflects a "victory of hardliners" in his administration, the official Xinhua News Agency said. It warned U.S.-Chinese economic relations were likely to face "even more pressure and challenges."

"We urge the United States to stop deliberately distorting China's strategic intentions and abandon a Cold War mentality," said a foreign ministry spokeswoman, Hua Chunying. "Otherwise it will injure others and damage itself."

Trump's report Monday hit a series of sore spots for Beijing. It affirmed ties with Taiwan, the self-ruled island the mainland government claims as its territory, and pledged to "re-energize our alliances" with Southeast Asian governments, some of which have conflicts with China over claims to portions of the South China Sea.

The United States and China share one of the world's biggest trading relationships and cooperate in areas from clean energy to public health. But Beijing sees Washington as an obstacle to its ambitions to be East Asia's dominant power, and strains over Taiwan, trade, technology policy and the South China Sea are growing.

"It is selfish to put your national interest above other countries' interest and the mutual interest of the international community," said the Chinese Embassy in Washington in a statement.

"The Chinese side is willing to have peaceful coexistence with all countries," said the embassy statement. "The United States should also adapt and accept China's development."

U.S. officials are uneasy about Beijing's rising military spending — already the second-highest behind Washington. They see President Xi Jinping's "Belt and Road Initiative," a project to build railways and other infrastructure across countries from Asia to Europe and Africa, as part of efforts to erode American influence and nurture a China-centered political structure.

Especially sensitive is Taiwan, the democratic island Beijing has declared a "core interest" over which it will go to war, if necessary.

Trump's report promises to "maintain our strong ties with Taiwan" and provide for its "legitimate defense needs."

China has taken a tougher stance toward Taiwan since last year's election of President Tsai Ing-wen, who has refused to endorse Beijing's contention that Taiwan is part of the Chinese nation. Chinese commentators speculate on the possible need for military steps to put pressure on Tsai.

After Trump signed a law this month that opened the way for U.S. Navy ships to visit Taiwan, a Chinese diplomat quoted by state media said the mainland would attack the day that happened.

Trump's report doesn't change Washington's official stance but might aggravate tensions if Taiwanese who want formal independence see it as sign of U.S. support and "want to take advantage of it," said Xiong Zhiyong, a U.S. relations expert at China Foreign Affairs University.

"The Chinese government is also anxious," said Xiong. He said the Chinese diplomat's remark is a "warning out of real worry that something may happen unexpectedly."

Hua, the foreign ministry spokeswoman, urged Washington to stick to diplomatic commitments on how to handle Taiwan.

On Monday, Chinese warplanes flew around Taiwan in what the military said was a test of their "ocean combat ability." Taiwan's defense ministry said Japan launched fighter planes to track the Chinese aircraft, but the Japanese government would not confirm that.

Trump's report promises to "re-energize our alliances" with governments including the Philippines and Vietnam, which have conflicting territorial claims with Beijing in the South China Sea. It also pledges to expand military cooperation with India, a country Beijing sees as a rival.

The report emphasized economic security and repeated complaints that China steals technology and uses "economic inducements" to persuade other governments to serve its strategic interests.

It proposes restricting visas to prevent intellectual property theft by foreigners, particularly Chinese, who travel to the United States to study science, engineering, math and technology.

Foreign business groups in China report that companies are increasingly frustrated with market barriers and other restrictions they say violate Beijing's free-trade promises.

The report is another abrupt turn in Trump's stance toward Beijing, which has veered between blistering criticism on trade and currency and optimism about cooperation on North Korea and other problems.

"China seeks to displace the United States in the Indo-Pacific region, expand the reaches of its state-driven economic model, and reorder the region in its favor," the report says.

In April, Trump announced that he was setting aside complaints about trade and currency in hopes of winning Chinese cooperation on North Korea. U.S. officials resumed criticizing Beijing in July.

Trump switched back to friendly overtures during a visit to Beijing in November. He said the two sides could solve most of the world's problems if they cooperated.

The Global Times, a newspaper published by the ruling Communist Party, said the report "reflects Washington's reluctance to accept the reality of China's rise."

"It is impossible for the United States to restrain China," said the newspaper, known for its nationalistic tone. "As China continues to grow and its influence continues to spill over, this is the root cause of Washington's anxiety."

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