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China Economy Forum

March 27, 2013, 10:30 a.m. ET

China's New Oil Reserves Rose 13% in 2012

By CHUIN-WEI YAP
BEIJING--China's discoveries of crude-oil and natural-gas reserves rose last year, which has helped to underpin the country's energy security, a senior Ministry of Land and Resources official said Wednesday.

New crude-oil reserves discovered on China's mainland increased 13% from a year earlier to 1.52 billion metric tons (1.68 billion short tons), said Xu Dachun, vice director for resources exploration with the Ministry of Land and Resources.

China also discovered 961.22 billion cubic meters (33.945 trillion cubic feet) of natural gas last year, up 33% from 2011, Mr. Xu said, according to the transcript of a media briefing.

Of the new deposits, 270 million tons of crude and 500.8 billion cubic meters of natural gas can be exploited with current technologies, Mr. Xu said.

China's crude-oil production last year rose 1% to 205 million tons while natural-gas output gained 5.4% to 106.76 billion cubic meters, he said.

Production of coal-bed methane, an unconventional energy resource, reached 2.57 billion cubic meters, up 24% from 2011, the ministry said.
 
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source from China Electronic Chamber of Commerce( CECC), in 2012, China's e-commerce market is 7.85 trllion Yuan(1.26trillion $), in chich business to business transaction volume is 6.25trillion Yuan(1trillion $ ), increased 27%; Online retail transactions amounted to 1.32 trillion Yuan(212billion $), increased 64.7%
 
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China semiconductors hold 50% globally

03/07/2013

CHINA'S semiconductor market now probably accounts for more than 50 percent of the global market, PricewaterhouseCoopers said yesterday.

The government policy support, a flourishing semiconductor design sector and huge demand were cited as factors for the achievement, PwC said.

At the end of 2011, China's semiconductor market contributed 47 percent to the global market, from 19 percent at the end of 2003.

"China has launched ambitious policy initiatives to develop specific next-generation technologies," said Gao Jianbin, analyst at PwC China.

The country's semiconductor market will benefit from China's rapid urbanization, rising consumer consumption and green energy programs, Gao said.

China's semiconductor market grew 34 percent in the past four years, double the global growth rate, on rising demand for smartphones and advanced TV sets, PwC said, adding that exports have been driving the growth of China's semiconductor market in the last decade.

China has identified semiconductors as one of the strategic industries in its 12th Five-Year Plan for the period between 2011 and 2015, according to the Ministry of Industry and Information Technology.
 
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Just for fun, some pictures, and the obama is making a speech for using American goods.

Don't know what did they use to hold the flag, they can say the thing holding flag is made in china, poor quality, hehe!
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BTW, ZPMC is Chinese company, famous for port crane, it occupy 70% share of Port crane in the world.
 
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China–Japan–South Korea Free Trade Agreement
Trade best guarantee of peace in East Asia - Asian Review - Globaltimes.cn
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There's an old story in China that tells of how three generals died when competing for two peaches. Some people use this story to describe the disputes between China, Japan and South Korea over two islands. In reality, these three countries are not as stupid as the three generals.

In spite of existing disputes over the islands, East Asia leads the development of the global economy. Such rapid economic development and increasingly close multilateral dependencies can maintain overall stability in this region. Positive cooperative factors are much greater than negative disputes and there is still room for cooperation to grow.

The first round of negotiations for the China, Japan and South Korea Free Trade Agreement (FTA) launched by the three countries successfully ended in Seoul Thursday. At the East Asia Summit in November last year, given the tense environments caused by the island disputes, leaders from these three countries still announced that trilateral FTA negotiations would be launched in March.

Although no trade or economic negotiations can be completed overnight and many difficulties remain for the negotiations to overcome, such an attitude is a promising beginning. It can demonstrate the three countries' close economic and trade relations, an urgent desire to enhance cooperation, the courage to withstand pressures and the political wisdom to focus on the overall situation.

The combined GDP of China, Japan and South Korea has reached $15 trillion, accounting for 20 percent of the world's total and 90 percent of East Asia's,70 percent of Asia, (Total imports and exports of the three countries in 2012 to approximately $ 5.4 trillion, 35 percent of the earth;), but the trade volume among the three accounts for less than 20 percent of their total foreign trade volume. Their economic relations are complementary. Establishing this trilateral FTA will reduce the influence of many trade barriers and build a huge market of 1.5 billion people.

There are many ongoing economic and trade negotiations in the Asia-Pacific region: the Trans-Pacific Partnership Agreement (TPP) led by the US, the ASEAN+6 FTA, and the China, Japan and South Korea FTA. Some people pay more attention to differences and conflicts while ignoring that these very conflicts can better demonstrate the development of East Asian cooperation. Economic and trade clashes show that this region is a meeting point of global interests. They also reflect that a cooperation mechanism that can adapt to the pace of development is needed.

Some people always hold that in the FTA negotiations between China, Japan and South Korea, it should remain true that "business is business." There are also some who would use political reasons to block economic cooperation. These are shallow perspectives.

To countries like China, Japan and South Korea, economic relations themselves are of political significance. In fact, without economic interactions and mutually beneficial mechanisms, friendship cannot last for long.

China, Japan and South Korea also have a common position in political, security and military fields. We all pursue peace and avoid war. Even Shintaro Ishihara, an outspoken hawk in Japan, has clearly stated that he has not sought a war with China.

Geographically, China, Japan and South Korea share the same region. An old Chinese saying holds that a far-off relative is less help than a neighbor close by. The US which is distant would have difficulty matching up with a regional neighbor. The relationship among the three countries should have become closer and the current situation in East Asia should not have come to pass after the end of the Cold War. Of course, the US may feel uncomfortable about this. However, the US cannot enjoy the advantages brought about by global peaceful development after the Cold War and insist on an outdated Cold War pattern at the same time. It is unfair and unsustainable.

China, Japan, South Korea and even the US should have common interests in achieving peaceful development by cooperation. This will be the best guarantee for all.
 
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China March services PMIs hit multi-month highs

BEIJING | Wed Apr 3, 2013 12:17am EDT

BEIJING (Reuters) - Growth in China's services sectors rose to multi-month highs in March as a construction boom and firmer demand lifted business and confidence, auguring well for a modest recovery in the world's second largest economy.

The official purchasing managers' index (PMI) for the non-manufacturing sector climbed to 55.6 in March from February's 54.5, aided by a buoyant construction sector. A PMI reading above 50 indicates accelerating activity.

A separate services PMI published by HSBC showed growth rebounding to a six-month high of 54.3 in March as improving economic conditions lifted demand, pushing business confidence to a 10-month high of 65.0.

Analysts welcomed the data as an encouraging sign that China's moderate economic revival is extending beyond its factories into an increasingly-important services industry.

"China is on track to beat the government's growth target for 2013," said Dariusz Kowalczyk, an economist at Credit Agricole CIB in Hong Kong, referring to Beijing's goal of expanding gross domestic product (GDP) by 7.5 percent this year.

"Services account for a larger share of GDP than manufacturing so improvement of sentiment here bodes well for the entire economy," said Kowalczyk, whose 8.5 percent GDP forecast for China in 2013 is among the most bullish in the market.

China's services industry has weathered the global slowdown much better than its factory sector, in part because it does not rely on exports for growth unlike manufacturers, who have been battered by crumbling foreign demand.

Twin PMI surveys for China's manufacturers published on Monday showed factory production quickened last month on firmer domestic demand, though the speed of the pick-up was not as brisk as some expected.

Indeed, the pair of services PMIs also showed that though firms expanded last month, business is not surging. Overall new orders in the services sector nudged up just 0.2 index points to 52.0 in March from February, the official PMI showed.

The services sector, which overtook factories as the biggest employer in China in 2011, accounted for 46 percent of the Chinese economy last year, as big as the manufacturing industry.

WELL-DISTRIBUTED RECOVERY

The National Bureau of Statistics, which publishes the official PMI, said the rise in new orders was evident across multiple sectors.

Firms in the information and communications sector and in the industries of retail, hotel and real estate all enjoyed more new orders in March compared to February.

But growth was strongest in the construction sector, where companies have thrived on big government infrastructure spending. The sector sub-index jumped 4.5 points from February to 62.5 in March.

Beijing had brought forward construction of about $150 billion worth of infrastructure last year as part of an effort to nudge the economy out of its worst slowdown in 13 years when annual growth sank to 7.8 percent.

That the rebound in activity extended across businesses in March indicates that China's economic recovery is well entrenched, said Qu Hongbin, a HSBC economist.

"Notably, the on-going recovery has translated into a continuous improvement of labor market conditions, which are supportive of consumer spending growth in coming quarters," Qu said.

The HSBC PMI showed staffing levels in services firms rose last month, albeit modestly, in the 49th consecutive month of gains as companies hired more workers to meet growing demand.

Yet busier activity did not fan inflation. Input prices rose more slowly in March compared with February. Moderate production inflation capped final prices, which barely rose last month from February.

Muted inflation should comfort investors worried that rising prices may lead China to tighten monetary policy too early and imperil its modest economic revival.

The central bank had raised money supply and cut interest rates twice last year by a total of 50 basis points to engineer a recovery in the economy.

Most analysts expect China's economy to enjoy a steady but gentle recovery this year, with infrastructure investment and household consumption helping compensate for softening demand for Chinese exports.

(Reporting by Nick Edwards, Aileen Wang and Koh Gui Qing; Editing by Simon Cameron-Moore)

China March services PMIs hit multi-month highs | Reuters
 
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Greater China opens up a 2,663 USPTO-granted patents lead on Germany!

Mainland China could pass France and the U.K. in the number of USPTO (U.S. Patent and Trademark Office) granted patents by next year. Greater China comprises mainland China, Hong Kong, and Taiwan.

The four largest exporters in the world (e.g. #1 China by using Greater China patents, #2 U.S., #3 Germany, and #4 Japan) are also the four largest USPTO patent holders.

PATENT COUNTS BY ORIGIN AND TYPE, CY 2012

Patents granted by the United States for the year 2012.

1. U.S. 134,187 patents
2. Japan 52,773
(Greater China 17,704)
3. Germany 15,041
4. South Korea 14,168
5. Taiwan 11,624
6. Canada 6,459
7. U.K. 5,876
8. France 5,857
9. China 5,341
10. Italy 2,546
...
India 1,733
Singapore 841
Hong Kong 739 (Patent office counts Hong Kong as a separate entity)
Russian Federation 339
Brazil 256
Malaysia 219

These countries are sometimes mentioned by the media as the "next China":

South Africa 158
Mexico 153
Poland 96
Greece 93
Argentina 67
Turkey 55
Thailand 46
Philippines 46
Ukraine 42
Chile 38
Egypt 28
Indonesia 12
Vietnam 4

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Size of USPTO-granted patents is inextricably linked to world's largest exporters

My claim is that the world's largest merchandise exporters attained their position by having the world's largest portfolio of USPTO-granted patents. If you agree with me then there will be no "next China."

To compete against China in manufacturing, a country must have approximately 17,000 in annual USPTO-granted patents. No developing country comes close. India's 1,700 patents is one-tenth of the necessary scale. Furthermore, India tends to have a bunch of meaningless software patents of dubious value. They are not a manufacturing competitor.

To compete against China, a country must have both quantity (e.g. a large scale of annual patents) and quality (e.g. advanced manufacturing patents like Taiwan's LED, LCD, machine tool, and notebook computer patents).

World's Largest Exporters and Importers, 2011

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On a different, but equally important Chinese economic issue:

China Widens Lead as World’s Largest Manufacturer

"China Widens Lead as World’s Largest Manufacturer
by David Sims | March 14th, 2013

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Credit: Constantine.nicky

Although China overtook the U.S. as the world’s largest manufacturing nation in 2010, the production margin between the two countries has been razor-thin. However, new data indicates that China recently widened its lead as the top global producer.

According to the latest research from the United Nations, China has further outpaced its competitors in world manufacturing, generating $2.9 trillion in output annually versus $2.43 trillion from the U.S., the world’s second-largest manufacturing economy.

Over the last two years, China’s manufacturing sector has made strong gains, while the U.S. has been mired in economic and political doldrums.

“In 2011, China’s manufacturing output surged by 23 percent while manufacturing output in the U.S. only increased by 2.8 percent,” the American Enterprise Institute explains. “That brought China’s manufacturing output last year to more than $2.9 trillion, which was almost half a trillion dollars (and 20 percent) more manufacturing output than the $2.43 trillion of manufacturing output that was produced in the U.S. last year.”

America’s trade gap with China also widened considerably over the same period. According to statistics from the Manufacturers Alliance for Productivity and Innovation (MAPI), the U.S. trade deficit with China rose by 8 percent to $498 billion in 2012, while the Chinese surplus increased 15 percent, to $755 billion.

MAPI officials point out that from 2009 to 2012, “the U.S. deficit rose by $172 billion, or 53 percent, while the Chinese surplus soared by $333 billion, or an extraordinary 79 percent.”

In addition to striking a blow to national pride, the comparatively slower growth in U.S. production versus Chinese manufacturing has also cost many jobs. MAPI found that the three-year increase in the U.S. trade deficit resulted in the loss of 700,000 to 1.4 million American manufacturing jobs, including 140,000 to 280,000 jobs in 2012 alone.

China’s output gains have been driven primarily through domestic demand, as “gains in new business allowed manufacturers to step up production by adding jobs and making more purchases,” the Associated Press reports.

HSBC’s chief China economist, Qu Hongbin Qu, told AP that while external demand was still “tepid,” the domestic-driven restocking process “is likely to add steam to China’s ongoing recovery in the coming months.”

However, many experts consider the rapid growth in Chinese manufacturing to be unsustainable unless the country begins to reorient its economy toward more advanced processes and complex products.

China is currently in an “edgy transition,” the Financial Times notes. “As the country ages and reaches the limits of physical labor and capital accumulation, its growth model will have to shift towards transformative technology and innovation.”

The factors putting stress on China’s industrial economy include a downturn in overall productivity, which is a vital part of economic growth and depends on technological change and institutional efficiency. So while China might have produce a higher quantity of manufactured goods, the U.S. still leads in quality and advanced manufacturing, particularly aircraft and other specialized products.

Moreover, the costs of offshoring production are becoming increasingly onerous for U.S. companies. Given the insecurity of intellectual property in China and other factors, many businesses are discovering that it makes more sense to keep production capacity at home.

Last year, Manufacturing Trends and News concluded that “changes in the economic environment are making homeshoring more and more attractive, with a number of manufacturers actively moving their offshore operations back to the home turf.”

Instead of simply looking at cheaper labor costs, manufacturers now look at the “total cost of ownership,” or TCO. This relies on a comprehensive view of the manufacturing industry, taking into account the cost of quality, delivery, transportation, energy consumption, labor monitoring, carrying stock, freight, packaging, and all other aspects of production.

In addition, Chinese labor costs are rising an average 15 to 20 percent per year, compared to only 2 percent increases in the U.S.

More importantly, the overall U.S. economy is considerably more diverse and less dependent on a handful of major industries than China’s, meaning that growth can continue despite slowdowns in individual industries.

“America’s household consumption alone generated $10.7 trillion of economic activity in 2011 – $3.5 trillion more than China’s entire gross domestic product,” the Atlantic observes. “This, despite the fact that our population is one quarter the size.”

Despite China’s accelerating growth, the U.S. continues to lead in top-end manufacturing and smart technologies. And if additive manufacturing, or 3-D printing, expands as forecast, America is likely to further solidify its position as the world’s leader in advanced production capabilities."
 
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Summary of China's economic miracle

Step 1: Innovation - Greater China's annual 17,704 USPTO patents permit China to charge higher prices for its innovative products. Greater China ranks as the world's third most-innovative country. Under the "One China" policy, virtually every nation recognizes Taiwan as part of China.

Step 2: Machine tools for production - China is the world's largest manufacturer of machine tools by far at $27.5 billion (see citation below).

Step 3: Export boom - According to WTO data, China is the undisputed world leader in annual exports of nearly $2 trillion.

Step 4: World's largest manufacturing economy - According to the U.N., China's $2.9 trillion manufacturing economy is 20% larger than the second-ranked $2.43 trillion U.S. manufacturing economy.

Final conclusion: China's demonstrated strengths in innovation and machine tool production are unique. There will be no "next China."

Citations:

Step #1: see previous post #1929
Step #2: see article below
Step #3: see previous post #1929
Step #4: see previous post #1929

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World Machine Tool 2012 Rankings

Machine tools are a reflection of the industrialization of a country. Modern manufacturing involves more precise and versatile machine tools. Hence, a country's factories must buy new modern manufacturing equipment to keep up with their foreign peers.

In the first citation page from Gardner (see below), China is comfortably ahead as the world's largest machine tool manufacturer at $27.5 billion. This means China has the scale/volume and the domestic capability to continue its massive industrialization without having to rely on foreign technology.
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The second citation page shows China's share of world machine tool manufacturing at 30%. The balance of power appears to have shifted irreversibly into China's favor as the world's largest manufacturer of machine tools. Given that China's share is almost equal to Japan's and Germany's combined share of 35%, economies of scale should provide China with an advantage in squeezing out its smaller rivals over the coming years.
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The third citation page shows Asia as the world's dominant region for producing machine tools. Europe is a distant second and the United States is almost non-existent. In other words, future machine tool advancements are likely to be developed in Asia.
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The fourth citation page illustrates China's commanding 41% consumption of world machine tools. The modern machine tools being placed into factories will function for 20 years. China's overwhelming dominance in annual consumption of world machine tools means China will be the world's manufacturing center for decades to come.
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The fifth citation page highlights China's consumption of machine tools (e.g. pace of continued industrialization and upgrade to modern equipment) as being equivalent to the next fifteen countries combined. China is the undisputed world leader in machine tool consumption.

When you see an advanced Chengdu J-20 or Shenyang J-31 stealth fighter, you should think that's very natural. Advanced five-axis or seven-axis machine tools are used to develop stealth fighters with unprecedented precision. For example, can you see the separation lines when the saw-toothed wheel and weapon bay doors are closed on the J-20 and J-31? You can't, because the tolerances are incredibly tight and only possible with the most-advanced modern machine tools.

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In the sixth citation page, we see the health of China's export industry in machine tools. While Chinese industry can barely meet the massive domestic demand from Chinese manufacturers, we expect China to rise among exporters of machine tools based on a more reasonable price and ever-improving quality and functionality.
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Source: https://docs.google.com/viewer?a=v&...o6ss5b&sig=AHIEtbS1GcfvLmY76j4wmOjoJS70Nv8PQw

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Power of accumulated machine tools over a ten-year period

What I am about to say seems a little counter-intuitive. Please pay careful attention as I walk you through the logic.

In the chart below for machine tool consumers, we see China consumes about $38.5 billion of machine tools each year. For India, it is $2.286 billion. The numbers for China and India remain relatively unchanged for 2011 and 2012 (as shown in the chart).

I use India as a basis for comparison, because those Indians like to compare themselves to China. However, the analysis applies equally to all countries.

Ratio of annual Chinese machine tool consumption to Indian machine tool consumption.

$38.5 billion / $2.286 billion = 16.84

Does this mean that India is only 17 years behind China in industrialization/machine tool consumption? Actually, no.

Over a ten-year period, China will have accumulated $385 billion of machine tools. India would have accumulated $22.86 billion of machine tools. The difference is $362 billion of machine tools.

$362 billion / $2.286 billion = 158

After a ten-year period, it will take India 158 years of machine tool purchases to match China's installed base of machine tools.

In conclusion, the disparity/ratio in annual machine tool consumption indicates a huge gulf between an industrialized and non-industrialized country. After a ten-year period of stable machine tool consumption, China has a 158-year lead on India in machine tools.

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First ARM Cortex-A57 Processor on TSMC's 16nm FinFET Technology

First ARM Cortex-A57 processor taped out by TSMC, ready for fab

"First ARM Cortex-A57 processor taped out by TSMC, ready for fab
By Steve Dent posted Apr 2nd, 2013 at 6:08 AM

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Your current smartphone just took another spin backwards on the obsolescence cycle thanks to a new landmark from ARM and TSMC: the first Cortex-A57 has reached the "tape out" stage, meaning it's ready for mass production. The new chip will use TSMC's 16nm FinFET technology (though the transistors will be 20nm for the A57) and will bring three times the CPU power of current chips for the same battery life -- or five times the battery life at the same speed. The companies said they ramped the chip from design to tape out in a mere six months, though there's no timetable for its arrival in specific devices. When it does start hitting next gen phones and slates though, expect the performance charts to get singed.

[Hide Press Release]

ARM and TSMC Tape Out First ARM Cortex-A57 Processor on TSMC's 16nm FinFET Technology

Hsinchu, Taiwan and Cambridge, UK – April 2, 2013 – ARM and TSMC (TWSE: 2330, NYSE: TSM) today announced the first tape-out of an ARM® Cortex™-A57 processor on FinFET process technology. The Cortex-A57 processor is ARM's highest performing processor, designed to further extend the capabilities of future mobile and enterprise computing, including compute intensive applications such as high-end computer, tablet and server products. This is the first milestone in the collaboration between ARM and TSMC to jointly optimize the 64-bit ARMv8 processor series on TSMC FinFET process technologies. The two companies cooperated in the implementation from RTL to tape-out in six months using ARM Artisan® physical IP, TSMC memory macros, and EDA technologies enabled by TSMC's Open Innovation Platform® (OIP) design ecosystem.

ARM and TSMC's collaboration produces optimized, power-efficient Cortex-A57 processors and libraries to support early customer implementations on 16nm FinFET for high-performance, ARM technology-based SoCs.

"This first ARM Cortex-A57 processor implementation paves the way for our mutual customers to leverage the performance and power efficiency of 16nm FinFET technology," said Tom Cronk, executive vice president and general manager, Processor Division, ARM. "The joint effort of ARM, TSMC, and TSMC's OIP design ecosystem partners demonstrates the strong commitment to provide industry-leading technology for customer designs to benefit from our latest 64-bit ARMv8 architecture, big.LITTLE™ processing and ARM POP™ IP across a wide variety of market segments."

"Our multi-year, multi-node collaboration with ARM continues to deliver advanced technologies to enable market-leading SoCs across mobile, server, and enterprise infrastructure applications," said Dr. Cliff Hou, TSMC Vice President of R&D. "This achievement demonstrates that the next-generation ARMv8 processor is FinFET-ready for TSMC's advanced technology."

This announcement highlights the enhanced and intensified collaboration between ARM and TSMC. The test chip was implemented using a commercially available 16nm FinFET tool chain and design services provided by the OIP ecosystem and ARM Connected Community partners. This successful collaborative milestone is confirmation of the roles that TSMC's OIP and ARM's Connected Community play in promoting innovation for the semiconductor design industry."

[Note: FinFET is 3D-chipmaking technology. Instead of flat layers like a pancake, the actual structures are vertical like a building.]

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Multigate device (FinFETs) | Wikipedia

"A 25-nm transistor operating on just 0.7 Volt was demonstrated in December 2002 by Taiwan Semiconductor Manufacturing Company. The "Omega FinFET" design is named after the similarity between the Greek letter omega (Ω) and the shape in which the gate wraps around the source/drain structure. It has a gate delay of just 0.39 picosecond (ps) for the N-type transistor and 0.88 ps for the P-type.

FinFET can also have two electrically independent gates, which gives circuit designers more flexibility to design with efficient, low-power gates.[12]"
 
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Tianjin to build cruise liner tourism zone

Xinhua, April 5, 2013

A national cruise liner tourism development zone in northern China's coastal city of Tianjin has received approval to be built, local authorities said Thursday.

The pilot project in the Binhai New District shows that Tianjin's cruise liner tourism is officially incorporated into the national development strategy, the city's tourism bureau said.

According to the China National Tourism Administration, the development zone will be the country's second after one in Shanghai.

"Cruise business is the so-called 'golden business in the golden waterway',"said She Qingwen, tourism bureau director. "Cruise tourism has already become a great engine for tourism development of the Binhai New District."

The international cruise home port in the Binhai New District was put into operation in June 2010. Since then it has attracted the world's three largest cruise liner companies -- America's Royal Caribbean Cruise Lines, Carnival Cruise Lines and Italy's Costa Cruise Lines. Official data showed that over the past two years, 85 international cruise liners have docked at the port. The number is likely jump to 90 in 2013 alone.

Tianjin to build cruise liner tourism zone - China.org.cn
 
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Chinese wages are 20% higher than in Mexico | Financial Times

Fact: "Not only are average hourly manufacturing wages in Mexico now lower than those in China in constant dollar terms, they are 20 per cent less." (See citation below from Financial Times)

Average manufacturing wage in:

China - $3 per hour
Mexico - $2.50 per hour

For over four years, I've been trying to tell all of you that Greater China's 17,704 annual USPTO patents underpin China's industrialization and rising standard of living. Chinese wages are far more expensive than in Africa, India, Southeast Asia, and now Mexico.

Notice that China's manufacturing average wage has quintupled in the last ten years (see chart below).

Despite significantly higher Chinese labor costs (e.g. $3 per hour), all of the manufacturing is still in China. How do you explain this? It's the abundance of Greater Chinese USPTO patents!

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Mexican labour: cheaper than China | beyondbrics

"Mexican labour: cheaper than China
Apr 5, 2013 12:26am by Pan Kwan Yuk

It is no secret that the wage gap between Mexico and China has been narrowing in recent years. While labour costs in Mexico were roughly 200 per cent more expensive than China a decade ago, wage inflation in China and wage stagnation in Mexico have combined to close the gap to nearly zero .

But could labour in Mexico now actually be cheaper than in China? Yes, according to Carlos Capistran, an economist at Bank of America Merrill Lynch. Not only are average hourly manufacturing wages in Mexico now lower than those in China in constant dollar terms, they are 20 per cent less.

Here’s the chart from Capistran’s note to clients on Thursday:

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Source: BofA Merrill Lynch"
 
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Taiwan remains the world's third-largest foreign holder of 125,749 USPTO patents

For 2012, Taiwan remains the world's third-largest cumulative foreign holder of 125,749 USPTO (ie. U.S. Patent and Trademark Office) patents during the last 35 years. Essentially, Taiwan is out-innovating every other country on the planet except for the United States, Japan, and Germany. This would explain Taiwan's ever-increasing standard of living and foreign exchange reserves.

Patents By Country, State, and Year - All Patent Types (December 2012)

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back Yuan data, 2011 China GDp 47.16trillion Yuan, 2012 China GDP 51.93 trillion Yuan
GDP by provinces, 1 $=6.2 Yuan now
1, Guangdong 5.706792 trillion yuan
2, Jiangsu 5.405822 trillion yuan
3, Shandong 5.001324 trillion yuan
4 3.46063 trillion yuan, Zhejiang
5, Taiwan NT $ 14,035,036,000,000, equivalent to 2.9951 trillion yuan
6, Henan 2.981014 trillion yuan
7, Hebei 2.657501 trillion yuan
8, Liaoning 2.48013 trillion yuan
9, Sichuan 2.38498 trillion yuan
10 Hubei 2.225016 trillion yuan
11, Hunan 2.215423 trillion yuan
12, 2.010133 trillion yuan in Shanghai
13, Fujian 1.970178 trillion yuan
14, 1.780102 trillion yuan
15, Anhui 1.721205 trillion yuan
16 Hong Kong of 2.0401 trillion Hong Kong dollars, equivalent to 1.6598 trillion yuan
17, Inner Mongolia 1.598834 trillion yuan
18, Shaanxi 1.445118 trillion yuan
19, Heilongjiang 1.369157 trillion yuan
20, Guangxi 1.303104 trillion yuan
21, Jiangxi 1.294848 trillion yuan
22, Tianjin 1.288518 trillion yuan
23, Shanxi 1.211281 trillion yuan
24, Jilin 1.193782 trillion yuan
25, Chongqing 1.1459 trillion yuan
26, Yunnan 1.03098 trillion yuan
27, Xinjiang 746.632 billion yuan
28, Guizhou 680.22 billion yuan
29, Gansu 565.02 billion yuan
30, Hainan 285.526 billion yuan
31 Macau $ 348.2 billion, equivalent to 275.3 billion yuan
32, Ningxia 232.664 billion yuan
33, Qinghai 188.454 billion yuan
34 Tibet 69.558 billion yuan
 
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