News on China's scientific and technological development.

escobar

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From its sprawling manufacturing base deep in China’s southwestern Hunan province, some 100 kilometers from where Mao was born, construction-machinery maker Sany Group plans to take on the world. While workers in blue overalls and yellow hard hats crawl over huge mobile hydraulic cranes and cement mixer trucks in a gleaming factory, Sany President Tang Xiuguo sits in his expansive office nearby, discussing the opening of Sany factories in Brazil, India, and Alabama, as well as the soon-to-be-completed $475 million acquisition of Germany’s Putzmeister, the world’s largest maker of cement pumps. The bespectacled Tang, one of four founders of the 22-year-old company, aims to lift overseas sales, now some 5 percent of its $16 billion revenue, to up to one-fifth of revenues within five years.

The phrase “Made in China” summons up images of cheap shoes, plastic toys, and electronics assembled in the vast factory complexes of Foxconn Technology Group (HNHPF). While China built its powerful export business—increasing 17 percent a year over the last three decades—on such light industry and electronics assembly, that is fast changing.
Rising labor costs, up 15 percent annually since 2005, plus an appreciating currency, are putting new pressures on China’s cheap manufacturing model and driving textile, shoe, and apparel factories to close or relocate to Vietnam, Cambodia, or Bangladesh. “China’s share of the world’s low-end exports has started to fall. This reflects a shift by Chinese producers into sectors where margins are higher rather than a failure to compete,” wrote U.K.-based Capital Economics in a March 28 note.

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Chinese-built ships, for example, dominated the global market with a 41 percent share last year, well ahead of South Korea and Japan, according to London-based shipping services company Clarksons. Data from the International Trade Centre, a joint agency of the United Nations and the World Trade Organization, also show strong gains in China’s global share of the markets for railway locomotives and wagons, machinery, and industrial boilers. In construction machinery, Sany’s specialty, three Chinese companies (Sany included) now rank in the top ten globally. Many of the new exporters are producing from inland China, rather than the coast, the traditional region for manufacturing.

Overall, the portion of China’s exports made up by heavy industry, about two-thirds of which is machinery, has grown from 29 percent in 2001 to 38.7 percent last year, surpassing light industry and electronics, according to Beijing-based economics consultants GK Dragonomics. “They are making different products with higher technology, things they can charge more money for,” says Andrew Batson, GK Dragonomics’ research director, who estimates that the new industries can help lift China’s share of global exports from 10 percent now to 15 percent by 2020. “The typical Chinese exporter is not a shoe factory in Guangdong anymore. Instead it is some kind of equipment or machinery maker.”

The Chinese makers of this machinery are targeting India, South America, and the Middle East, as Europe, still China’s largest export market, struggles with its debt crisis. Europe, the U.S., and Japan accounted for 48 percent of China’s total exports last year, down from 56.1 percent in 2003, with developing countries now taking the majority, says Louis Kuijs, an economist at the Hong Kong-based Fung Global Institute. “We have an advantage because our technology and our products level are more suitable for these countries,” says Sany’s Tang. “And our price is a bit lower than other international brands.”

Policy makers have made upgrading industry a national priority. Equipment manufacturing, shipbuilding, and cars are among the industries slated to receive $2.5 billion from the government this year to improve technology and product quality. Mergers and acquisitions inside China and overseas are also being encouraged. Says Shao Ning, vice minister of the powerful State-Owned Assets Supervision and Administration Commission of the State Council: “Our position is we support Chinese companies investing abroad.”

While China’s new manufacturers are not competing in developed markets yet, already they are challenging Caterpillar (CAT), Siemens (SI), General Electric (GE), and other established equipment makers in places like South America and Russia. China’s construction-machinery industry is expected to overtake Japan’s and Germany’s soon, making it the world’s second-largest exporter in the category, behind the U.S.

Winning market share in the U.S. and Europe could take years, in part because of concerns over Chinese quality (the crash of a Chinese-built high-speed train in Zhejiang province in July hurt China’s reputation as a manufacturer). Sany says it spent $240 million last year upgrading its factories, including the installation of welding robots. As Sany expands overseas, it aims to improve its products to match the quality achieved by its newest acquisition, Germany’s Putzmeister, which will share engineering know-how and suppliers with its Chinese parent. Says Tang, “We know that ‘Made in China’ doesn’t have a great reputation. We want to change this through selling high-quality products.”

The bottom line: Chinese exports have been rising 17 percent a year on average. To keep that pace, China is trying to grab market share in high-end machinery.
 

J-XX

Banned Idiot
No, I wrote it myself. That's why I was so pissed when I lost the whole thing, after writing it for a whole hour.

Hey thanks alot for the explanation. It was very helpful for noobs like me. I have been trying to learn from the pictures but you gave a great explanation.
So china basically has all the 4 major things; wafer production
, photoresist solution, photolithography machines @ 90nm and etch tools @ sub 28nm node for 200mm wafers.

Basically china just need photolithography machines for 32/28nm and etch tools @ sub 28nm nodes for 300mm wafers?
Then it will be upto date.

What about the mask, does china produce that?
 

antiterror13

Brigadier
China is also lack badly in high end software development, really the US is above everybody by big margin .... this is one of the key technologies China has to master ....., software control everything.

See ... Apple don't manufacture anything and have no ability to do so, what Apple has been doing is to control the software (o/s) and specs and let China make them.
 

CottageLV

Banned Idiot
Hey thanks alot for the explanation. It was very helpful for noobs like me. I have been trying to learn from the pictures but you gave a great explanation.
So china basically has all the 4 major things; wafer production
, photoresist solution, photolithography machines @ 90nm and etch tools @ sub 28nm node for 200mm wafers.

Basically china just need photolithography machines for 32/28nm and etch tools @ sub 28nm nodes for 300mm wafers?
Then it will be upto date.

What about the mask, does china produce that?

SMIC, 中芯, is able to make it. Not sure who else does it. It costs about 200-500 million USD just to build a photomask shops. Usually they are owned by the chip makers, such as Intel and IBM, in this case, SMIC. There are also contractors that does the same thing.

---------- Post added at 05:11 AM ---------- Previous post was at 05:04 AM ----------

China is also lack badly in high end software development, really the US is above everybody by big margin .... this is one of the key technologies China has to master ....., software control everything.

See ... Apple don't manufacture anything and have no ability to do so, what Apple has been doing is to control the software (o/s) and specs and let China make them.

You mean high end industrial software or consumer software distributed in large scale? If you are talking about industrial software, then yes. But if you're talking about consumer level software, then there is no gap. Since China got the worst copyright problem in the world. No single person buys legitimate software. Well, that's a bit exaggerated, but at least very few, to the point of being negligible. On the other hand, Chinese IT sector rebuilt itself pretty quickly. Although people no longer pay for software, IT sector found new way to grow. They now rely completely on advertising and occasionally VIP exclusive services. This is quite beneficial for China as a whole. It drives out foreign competitors and make domestic companies serve the population for free.

In terms of industrial software, it is not a life or death situation. China does have a pretty strong IT sector. Current indigenous software are decent, just not the most advanced.
 

RedMercury

Junior Member
I would not hold apple up as a paragon of software development. Apple has good interface designers and keen artists. Their software in terms of software engineering isn't out of the ordinary. In terms of technical excellence, google pretty much owns the field (by owning all the good phds).
 

CottageLV

Banned Idiot
I would not hold apple up as a paragon of software development. Apple has good interface designers and keen artists. Their software in terms of software engineering isn't out of the ordinary. In terms of technical excellence, google pretty much owns the field (by owning all the good phds).

I totally agree with that. Apple is more of a for profit company and a design firm, whereas Google is more oriented towards innovation and avant garde technologies.
 

CottageLV

Banned Idiot
Just found this video, it does a great job explaining how semiconductors are made.

[video=youtube_share;9rCyu8B0tYs]http://youtu.be/9rCyu8B0tYs[/video]3
 

escobar

Brigadier
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China has put the country's first oil spill response vessels (OSRV) into use, a move to strengthen emergency response capabilities in case of oil spill accidents.

The vessel named "Haite 191" was put into operation Thursday off southern China's Guangxi Zhuang autonomous region, said Li Guokai, chief of the region's Maritime Safety Administration (MSA).

The vessel is equipped with the world's most advanced oil spill recovery technology, and oil spill recovery rates could reach 200 cubic meters per hour, according to Li.

A comprehensive oil spillage surveillance, tracking and detection radar system was installed on the vessel, and lifting equipment was also available so as to install fencing equipment to contain the spilled oil at sea, said Li.

At a cost of 65 million yuan (10.3 million U.S. dollars), the kiloton vessel has a cruising range of 800 sea miles with a maximum speed of 15 knots.

The vessel, 60 meters long and 12 meters wide, also will serve as a daily cruising vessel, Li said.

The ship is among the first of three specialized OSRVs which was approved for construction by China's MSA in 2010. Another, named "Haite 071" was put into use on Monday off Qingdao, eastern Shandong province, and "Haite 111," will go into operation within one month in the sea off Zhejiang province.

As China has been witnessing increasing number of offshore oil projects and rapid development for oil sea transportation, the risk of oil spills is also mounting.

"The OSRVs will to a large extent improve our emergency response ability for oil spill accidents, and effectively reduce the impact on the marine ecosystem," said Yuan Zongxiang, chief of Shandong MSA.
 
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