China Economy Forum

[bobsm]

China lays out vision for Web governance

China lays out vision for Web governance
Global Times | November 20, 2014 00:23
By Catherine Wong Tsoi-lai

President Xi Jinping called on the world to step up Internet governance in a congratulatory message sent to the opening of China's first World Internet Conference, seen by experts as presenting China's vision for future Internet development amid the nation's rising global influence over cyberspace.

"China is ready to work with other countries to deepen international cooperation, respect sovereignty on the Internet, uphold cybersecurity, and jointly build a cyberspace of peace, security, openness and cooperation, as well as an international Internet governance system [based on] multilateralism, democracy and transparency," said Xi in the congratulatory letter sent to the three-day World Internet Conference, which opened Wednesday in Wuzhen, Zhejiang Province, reported the Xinhua News Agency.

Centering on the theme of "An Interconnected World Shared and Governed by All," the conference is covering topics that include global Internet governance, mobile Internet, cross-border e-commerce, cybersecurity and combating terrorism on the Internet.

Internet specialists commented that the conference and Xi's statement show China's commitment to strengthening Internet governance as it becomes an Internet superpower.

"The Internet has evolved from a virtual space to an integral part of Chinese society. [The conference and Xi's message] show that the Chinese government has placed higher priority on managing the Internet, as China is becoming an Internet superpower, with a huge number of Web users and the global influence of Chinese Internet companies like Alibaba," Wei Wuhui, an Internet and new media expert with Shanghai Jiao Tong University, told the Global Times.

Official statistics show that China currently has 632 million Internet users, including 527 million who access the Web from mobile devices. The total number could rise to 850 million by 2015.

more from the link.

 

[Martian2]

The most shocking aspect of the new 2014 IC Insights' semiconductor leaders (see table below) is that GlobalFoundries dropped out of the Top 20 list.

Intel remains the world leader at x86 CISC microprocessors. Sales still hover at $50 billion.
Samsung retains its stronghold in DRAM memory chips.
Taiwan's TSMC continues to chalk up double-digit gains in worldwide foundry market-share growth. TSMC remains the world leader at manufacturing RISC-based ARM chips. At this rate, TSMC could catch Intel in revenue in about five years. TSMC's net income of US$8 billion this year is approaching Intel's net income of US$9.6 billion for last year.

If you're curious, Freescale used to be the semiconductor division of Motorola.
Taiwan's UMC has reclaimed its former position as the world #2 in the foundry business. UMC will slip back into #3 as GlobalFoundries buys IBM's chip manufacturing business.
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Top 20 Global Semiconductor Sales Ranking for 2014 | PCBDESIGN007

"Top 20 Global Semiconductor Sales Ranking for 2014
Friday, November 07, 2014 | IC Insights

Later this month, IC Insights’ November Update to The 2014 McClean Report will show a forecast ranking of the 2014 top 25 semiconductor suppliers with the companies’ sales broken down on a quarterly basis. A preview of the forecast for the top 20 companies’ total 2014 sales results is presented in Figure 1. The top 20 worldwide semiconductor (IC and O S D-optoelectronic, sensor, and discrete) sales ranking for 2014 includes eight suppliers headquartered in the U.S., three in Japan, three in Europe, three in Taiwan, two in South Korea, and one in Singapore, a relatively broad representation of geographic regions.

This year’s top-20 ranking includes two pure-play foundries (TSMC and UMC) and six fabless companies. Pure-play IC foundry GlobalFoundries is forecast to be replaced in this year’s top 20 ranking by fabless IC supplier Nvidia. It is interesting to note that the top four semiconductor suppliers all have different business models. Intel is essentially a pure-play IDM, Samsung a vertically integrated IC supplier, TSMC a pure-play foundry, and Qualcomm a fabless company.

IC foundries are included in the top 20 ranking because IC Insights has always viewed the ranking as a top supplier list, not as a marketshare ranking, and realizes that in some cases semiconductor sales are double counted. With many of our clients being vendors to the semiconductor industry (supplying equipment, chemicals, gases, etc.), excluding large IC manufacturers like the foundries would leave significant “holes” in the list of top semiconductor suppliers. Foundries and fabless companies are clearly identified in Figure 1. In the April Update to The McClean Report, marketshare rankings of IC suppliers by product type were presented and foundries were excluded from these listings.

As shown, it is expected to require total semiconductor sales of over $4.2 billion to make the 2014 top 20 ranking. In total, the top 20 semiconductor companies’ sales are forecast to increase by 9% this year as compared to 2013. However, when excluding the two pure-play foundries (TSMC and UMC) from the ranking, the top “18” semiconductor companies’ sales are forecast to increase by 8% this year, the same rate as IC Insights’ current forecast for total 2014 worldwide semiconductor market growth.

Outside the top six spots, there are numerous changes expected within the 2014 top-20 semiconductor supplier ranking. In fact, of the 14 companies ranked 7th through 20th, 10 of them are forecast to change positions in 2014 as compared with 2013 (with NXP expected to jump up two spots)."

Link to IC Insights: Nine of the Top 20 Semiconductor Suppliers are Forecast to Register Double-Digit Growth in 2014! | IC Insights

 

[ahojunk]

China commits $45.6 bln for economic corridor with Pakistan

Pakistan sees the latest round of Chinese investments as key to its efforts to solve power shortages that have crippled its economy.

World Bulletin/News Desk
21 November 2014 Friday

The Chinese government and banks will finance Chinese companies to build $45.6 billion worth of energy and infrastructure projects in Pakistan over the next six years, according to new details of the deal seen by Reuters on Friday.

The Chinese companies will be able to operate the projects as profit-making entities, according to the deal signed by Prime Minister Nawaz Sharif during a visit to China earlier this month.

At the time, officials provided few details of the projects or the financing for the deal, dubbed the China-Pak Economic Corridor (CPEC).

The deal further cements ties between Pakistan and China at a time when Pakistan is nervous about waning U.S. support as troops pull out of Afghanistan.

Pakistan and China, both nuclear-armed nations, consider each other close friends. Their ties are underpinned by common wariness of India and a desire to hedge against U.S. influence in South Asia.

Documents seen by Reuters show that China has promised to invest around $33.8 billion in various energy projects and $11.8 billion in infrastructure projects.

Two members of Pakistan's planning commission, the focal ministry for the CPEC, and a senior official at the ministry of water and power shared the details of the projects.

The deal says the Chinese government and banks, including China Development Bank, and the Industrial and Commercial Bank of China Ltd (ICBC), one of China's 'Big Four' state-owned commercial banks, will loan funds to Chinese companies, who will invest in the projects as commercial ventures.

"Pakistan will not be taking on any more debt through these projects," said Pakistan's minister for water and power Khawaja Asif.

Major Chinese companies investing in Pakistan's energy sector will include China's Three Gorges Corp, which built the world's biggest hydro power scheme, and China Power International Development Ltd.

Sharif signed more than 20 agreements during his trip to China earlier this month, including $622 million for projects related to the deepwater, strategically important Gwadar port, which China is developing.

The port is close to the Strait of Hormuz, a key oil shipping lane. It could open up an energy and trade corridor from the Gulf across Pakistan to western China that could be used by the Chinese Navy - potentially upsetting rival India.

Pakistan sees the latest round of Chinese investments as key to its efforts to solve power shortages that have crippled its economy.

Blackouts lasting more than half a day in some areas have sparked violent protests and undermined an economy already beset by high unemployment, widespread poverty, crime and sectarian and insurgent violence.

Under the CPEC agreement, $15.5 billion worth of coal, wind, solar and hydro energy projects will come online by 2017 and add 10,400 megawatts of energy to the national grid, officials said.

An additional 6,120 megawatts will be added to the national grid at a cost of $18.2 billion by 2021.

"In total we will add 16,000 MW of electricity through coal, wind, solar and hydel plants in the next seven years and reduce power shortage by 4,000 to 7,000 megawatts," said Asif.

"This will take care of a growing demand for power by a growing economy."

The CPEC deal also includes $5.9 billion for road projects and $3.7 billion for railway projects, all to be developed by 2017. A $44 million optical fibre cable between China and Pakistan is due to be built.

 

[Edison Chen]

Interest rate cuts tackle financing costs


BEIJING -- The People's Bank of China (PBOC), China's central bank, announced on Friday the first interest rate cuts in more than two years.

"The purpose of cutting the deposit and lending rate is to bring actual interest rates back to a proper level and lower the financing costs facing many enterprises," said a PBOC statement after the rate cut was announced.

China's economy is still under pressure, problematic for businesses, especially smaller ones. "Tackling high financing burdens is especially important in stabilizing growth, creating jobs, and benefiting consumers," the statement said. The adjustment should provide a neutral and reasonable monetary environment for sustainable economic development.

"China has done a lot to address corporate financing difficulties this year, such as cutting the reserve requirement ratio for certain banks, but cutting interest rates is the most direct way to bring down costs," said Wang Jun of the China Center for International Economic Exchanges.

UBS chief China economist Wang Tao said in a research note that the cut is an important step toward lowering of real borrowing costs.

The central bank insists that the cuts are not a shift away from "prudent monetary policy", and the adjustment was a "neutral operation"; mere fine-tuning of monetary policy in line with changes in the real economy, which is still growing at a healthy rate. With industrial upgrades underway, the PBOC reckons growth is now more reliant on innovation than investment and "there is no need for strong stimulus."

Jin Zhongxia, director of the PBOC research institute also calls the rate cut "neutral".

"If the rates were not lowered with the economy under pressure, then one could argue that monetary policy is too tight," Jin said.

The cuts came as GDP expanded 7.3 percent year on year in Q3, compared with 7.5 percent in Q2 and 7.4 percent in Q1. Q3 growth was the slowest since Q1, 2009.

Wang Jun said that low consumer prices also provided room for the cuts. The consumer price index, a main gauge of inflation, grew 1.6 percent year on year in October, the lowest for more than four years.

The cuts, which took effect on Saturday, mean that the one-year deposit rate stands at 2.75 percent, while the one-year lending rate is at 5.6 percent.

Zhao Qingming, chief analyst of CFFEX Institute for Financial Derivatives, said that the asymmetric cut narrowed banks' profit margins, which could be interpreted as an attempt to shift part of the banks' profits to enterprises.

"The profits of banks are much higher than average profits in the real economy. In the perspective of China's long-term economic development,banks must portion part of their profits to the real economy and find new ways of generating profits," Zhao said.

Wang Tao argues that although the cut will hurt banks' net interest margin, it could benefit them by strengthening borrowers' balance sheets and reducing the risk of bad loans.

"The main effects of today's rate cut will be to reduce the debt servicing burden and improve corporate cash flow and balance sheets. This should help slow the pace of non-performing loan formation and reduce overall financial risk," Wang said.

She added that the biggest near-term beneficiary group will be mortgage borrowers, as mortgage rates will be reduced in tandem with the benchmark lending rate, helping to support property demand.

Interest rate cuts tackle financing costs - Business - Chinadaily.com.cn

 

[Edison Chen]

央行降息最强解读，没有之一_热点聚焦_中国贸易金融网

央行周五晚间突然宣布降息。机构们、经济学家们纷纷对此次降息给出了自己的观点，大伙纷纷表示在意料之中，干得漂亮，并且好戏在后头。为大家搜罗了些他们的观点，仅供参考。

　　央行官方：中性操作，取向不变

　　此次利率调整仍属于中性操作，并不代表货币政策取向发生变化。当前我国经济运行保持在合理区间，物价涨幅总体呈回落态势，中央银行需要根据经济基本面的运行态势，灵活运用利率工具进行微调，保持适当的实际利率水平。这是坚持和完善正常利率调整机制的应有之义，也是提高稳健货币政策针对性和有效性的要求。总体看，我国宏观经济仍保持中高速增长，物价涨幅回落，经济结构不断优化升级，经济增长正从要素、投资趋动转向创新驱动。因此不需要对经济采取强刺激措施，稳健货币政策取向不会改变。

　　马骏（人民银行研究局首席经济学家）：此次降息不代表货币政策转向

　　此次降低基准利率并不代表货币政策的转向。我在上面提到了实际利率由于物价涨幅趋缓而面临上行压力，因此适当降低名义利率有利于保持货币条件的稳定（实际利率是货币条件的重要组成部分）。从这个意义上讲，这次利率调整恰恰是为了保持货币政策的连续性和稳定性。

　　巴曙松（国务院发展研究中心金融研究所副所长）：央行降息降准难改住宅调整趋势

　　针对此次降息降准，巴曙松表示，虽然央妈降息降低了购房者的月供负担，但本轮市场调整源于供过于求，住宅市场调整的趋势无法改变。

　　郭田勇（中央财经大学金融学院教授）：此次降息并非大规模刺激

　　我并不认为此次降息属于大规模刺激，而更愿将其理解为在经济下滑、通胀率很低状态下货币政策进行的适应性调整。理论上说，数量型与价格型货币政策工具具有可代替性，但在我国，由于利率尚未市场化，这一替代是有限的，央行通过数量型工具向金融体系注入流动性，只能增加货币供给而难以有效增加微观主体货币需求。因此，尽管央行前期采取定向降准及SLF、SLO、PSL等创新工具增加流动性，但未来降息仍是大概率事件。

　　贾康（经济学家）：降息是“相机抉择”的微刺激调整

　　经济下行的过程中，经历了此前几次定向将准后，央行推出全面降息措施，是“相机抉择”下的微刺激调整。“并不能理解为强刺激，放松银根并配套利率浮动的改革，总体对宏观经济向好是有必要的，利率市场化也是导向内容”。对于财政的影响，资金投放将增加。

　　连平（交通银行首席经济学家）：不会形成降息通道

　　央行降准时机比较合适，当前经济下行压力较大，降息会降低企业融资成本，尽管此次幅度不大，但对企业融资来讲仍是重要利好。但不会形成降息通道，连续降息可能性不大，但不排除还有一次降息的可能性。连平认为此次降息并没有改变稳健货币政策的基调，属于中性偏松的一边

　　汪涛（瑞银经济学家）：降息是是绝对正确的行动

　　中国央行下调利率是绝对正确的行动。随着经济增速和通胀放缓，实质利率已经大幅攀升，这有损企业的现金流和资产负债表，并可能导致不良贷款增加。由于房贷利率将随基准利率一道下降，短期内从降息中获益最大的将是房贷借款人、从而有助于支撑房地产需求。虽然非对称降息会抑制银行净息差，但降息同时可以改善借款人资产负债表质量改善、减缓不良贷款生成速度，从而有利于银行业的基本面。

　　管清友（民生证券研究院执行院长）：预计下一次降准降息不会太远

　　宽松空间打开，预计下一次降准、降息不会太远，宽松一直持续到社融余额增速拐头向上，经济内生动力增强为止。无风险利率下降利好股市和房地产，也直接利好债市，但考虑到市场预期充分，效果不会太明显。当房地产销售带动经济转暖，则股强债弱。

　　鲁政委（兴业银行首席经济学家）：有助于系统性下调融资成本

　　本次降息有助于在明年初存量贷款重定价时系统性下调融资成本，特别是以贷款基准利率为定价基准的小微、三农，当然还有房地产。存款上限的提高，在为最终完全解除奠定基础，也是避免吸储困难。

　　洪灝（交银国际董事总经理兼首席策略师）：中国降息令人意外

　　中国降息令人意外，将刺激投资者热情，推动股市进一步上涨。这是利多，由于预期利率以及/或存款准备金率可能再度被下调，市场将继续走高。

　　徐高（光大证券首席经济学家）：此次举措有点出人意料

　　此次举措有点出人意料，因为政府之前一直都暗示不愿降息。中国房地产投资将显著受益于此次降息。银行利差将缩小，因为贷款利率下调，与此同时存款利率可能变动不大，因为银行已经因存款流失而苦恼。预期12月份的经济数据，包括制造业PMI将开始显示出降息的影响。

　　姜超（海通证券宏观债券首席分析师）：降息周期展开，宽松有望延续

　　从流动性的角度来看，降息周期展开，宽松有望延续：①央行宣布自11月22日起下调金融机构人民币贷款和存款基准利率，标志着降息周期的正式开始。②1年贷款基准利率下调40bp，有望大幅降低企业贷款融资成本。③1年存款利率下调25bp，但上浮上限由1.1倍扩大至1.2倍，意味着利率市场化加速推进，而存款利率基本未变，助于银行利润向实体经济的转移，降低经济风险。④预测15年GDP增速7%、CPI增1.5%，通缩是主要风险，泰勒规则下7天回购利率应在2.5%以下，判断未来仍有一次以上降息，流动性宽松有望延续。

　　林采宜（国泰君安高级经济学家）：降准就要来了

　　意料之外的降息和预期中的降准将给资本市场带来一场巨大的资金面繁荣。由于需求低迷，大量流动性没有进入实体，短期内对通胀不会构成实质性影响，但会推动资产价格上涨，尤其是股市。预计央行或许还有下一步动作，鉴于融十条将其他金融机构同业存款纳入一般性存款统计指标，估计在不久的将来央行还会推出降准措施来对冲准备金增加造成的流动性紧缩效应。

　　滕泰（万博兄弟资产管理公司董事长）：中国将进入降息周期

　　降息是正确且必要的举措。中国经济连续十几个季度的下行，物价也出现通缩的趋势，近几年，高融资成本是经济下行的一个重要原因，央行降息可以说“亡羊补牢，犹为未晚。中国将进入降息周期。降息将降低企业的融资成本，对制造业的回暖有利，而地方债的融资成本也将下降，对基建、房地产行业形成利好；同时也将极大提振消费，促进明年的经济增长。

　　马光远（经济评论员）：央行降息是完全正确的

　　很多人，包括我们很多专家学者对流动性紧张的状况视而不见，用房地产绑架货币政策，实属愚蠢。美国量宽退出终结，加息在即，国际资本流出中国在加剧，中国将迎来至少两年的钱荒，不降准，不降息，要搞死经济吗？但降息不够，还要降准。

　　甘犁（西南财大中国家庭金融调查与研究中心主任）：中小微企业融资成本不会降低

　　中小微企业的融资成本远高于基准利率，对基准利率并不敏感，融资成本也不会降低。各类理财产品及“宝宝”们存款利息也远高于3%，很难止血资金从银行存款流出。可能产生影响的房市，但其影响范围需要估算。最大的利好是股市。

　　钟正生（国信证券首席宏观研究员）：全面降准概率大幅上升

　　非对称降息传递强宽松预期的同时实质意义有限，同时会遇到来自银行相关部门的巨大阻力，我们一直认为不太可能推行。但是现在既然推出了，可能意味着经济和就业可能陷入了较大的困境，降低社会融资成本的迫切性明显上升。如果是这样那么单纯价格工具是不够的，后续一定是需要数量配合的。也就是说，无论是全面降准或者大规模流动性注入的概率都会大幅上升。另外一种可能是，如果将贷存比口径调整和非对称降息合在一起看，明年或许银行吸储的压力会相对较小，这样存款利率也可能不用一浮到顶，会有所下降，这样对于降低银行负债端成本和社会融资成本是有意义的。

　　张仕元（西南证券首席研究员）：应该降，再不降不行了

　　至少降息也呼应了市场上大家的预期。周三国务院常务会议决定的“十条”表示希望从国际上引进低成本的资金，国内的资金成本没必要保持那么高了，这种提法以前从来没有。其一主要是消费不振，尤其是地产政策松动以来，房地产市场经过短暂反弹后又出现下降，包括一些一线城市的地产销售和信贷数据都是负增长。也就是说现在老百姓认为目前总体的资金利率成本仍然是比较高，没有购房的意愿。现在整个地产去库存的压力非常大，搞不好明年经济就会失速。第二，从企业的财务成本，尽管央行持续引导利率下行，但是企业的财务成本仍然是在保持20%以上的速度增长，抑制了企业进一步拿资金的需求。整个产业产能过剩，企业没有扩大产能的需求，导致尽管央行在引导资金下行，但企业没有实际的积极性。

　　杨红旭（易居房地产研究院副院长）：降息助涨房价

　　8月9月，我曾在全国率先喊出一口号：新一轮购房季正在来临！预言大城市成交量已见底，几个月后房价就会止跌反弹！核心逻辑正是政策暖风频吹，货币政策与政府救市双轮驱动，市场只有一种可能：苏复。而10月成交量大增，印证了逻辑。今全面降息，进一步加强逻辑，一线城市必然率先反弹！

　　任志强（华远地产董事长）：杨红旭降息助涨房价一说“太乐观了”。

　　张大伟（中原地产首席分析师）：房企最困难时间已过去

　　已明显企稳升温的楼市，在再次降息的影响下难免出现暖上加暖现象。一二线城市楼市资金面将明显好转。房价再跌的可能性接近于0。三四线因为库存绝对值过高，即使信贷刺激，出现全面回暖可能性也不大。房企最困难时间已过去。

　　申银万国：央行此次开启了降息周期

　　降息是必要的，我们之前就反复强调存贷款利率对市场利率的制约很明显，不降息，债券利率没有下降空间，贷款利率也下不去。非对称降息意味着政府在降低融资成本方面决心很大。经济依然是后期的核心。强调目前经济最大的不确定性不是地产，是基建。在债务改革的大方向下，基建增速在短期持续回落的概率极大。经济不轻言见底。央行此次开启了降息周期，但是银行间货币市场在新的货币政策框架下重要性提升是必然。未来银行间释放流动性、降低银行间利率的趋势同样明显、利率曲线还是会保持平坦。利率品的下行空间是确定的，短期内中高等级信用品预计依然会跟随。

　　中金公司：降息反映货币政策放松导向

　　降息证实了我们的判断，贷款利率下降幅度高于预期，降息反映货币政策放松导向。利率调整迈出了关键的一步，利率政策将在今后更多地发挥逆周期的调节作用。降息有助于经济企稳；将降低房地产销售和投资继续大幅下行的风险，并有利企业盈利。降低实体经济融资成本，对提高企业盈利增速有利。未来政策继续放松，人民币汇率保持稳定。未来下调存款准备金率空间仍然较大。但借助人民币贬值来“稳增长”不具备操作性。后续如有进一步降息，预计不会采用非对称方式。这次降息后，明年银行盈利预计零增长或小负。

　　■本文各方观点均来自网易财经、新浪财经略作删减和整理。

I wish I had time to translate all these opinions about PBOC's interest policy recently...

 

[Martian2]

China develops first mathematical proof of Universe's origin

Proof that the Universe Could have Come from Nothing? - From Quarks to Quasars

"Proof that the Universe Could have Come from Nothing?

The big bang is supported by a plethora of evidence. As such, the current scientific consensus is that that universe “exploded” into existence about 13.7 billion years ago. Gravitational waves, the cosmic microwave background, and the over abundance of primordial elements all add great weight to the validity of the big bang theory. However, despite all of this evidence, scientists are still left with a nagging question: What caused the big bang? Where did all of this stuff come from?

Image Credit: Chaoss/Shutterstock

Many scientists assume that the universe came from nothing, which is an idea that can only be true in light of quantum theory. Ultimately, quantum fluctuations could allow a universe to spontaneously form from nothing. However, without a mathematical proof, the idea that the universe spontaneously popped into existence has no real substance. And therein was the problem. We didn’t have the math to support the “universe from nothing” hypothesis.

This is where Dongshan He and his team from the Wuhan Institute of Physics and Mathematics (WIPM) comes in. They have managed to develop the first mathematical proof that the big bang could have been the result of quantum fluctuations. The Wheeler-Dewitt equation and the Heisenberg uncertainty principle are at the heart of this new proof.

The Wheeler-Dewitt equation is the first generation of a theory of everything. In the 1960s, John Wheeler and Brice Dewitt came up with a mathematical framework that created an unholy marriage between quantum mechanics and general relativity. The equation lays a lot of the groundwork for the idea of quantum gravity (one of the main problems we have with understanding everything about everything is that we have no model to unite gravity and quantum mechanics). The equations biggest problem is that it doesn’t include time. So it’s not grand unification, but it’s the best we have right now.

Heisenberg’s uncertainty principle, on the other hand, is more widely known. Is its simplest terms, this principle states that an observer cannot know both the location and the momentum of a quantum particle (otherwise, you’d have to violate thermodynamics). From the uncertainty principle, we see that empty space isn’t really empty. Inside the vacuum, particles are allowed to pop in and out of existence due to probabilistic quantum fluctuations (this is where the idea of the “false vacuum” came from.)

So, how does any of this help us? Dongshan explained, “We proved that, once a small true vacuum bubble is created, it has the chance to expand exponentially.”

Image Credit: National Geographic

The WIPM team describe these bubbles of true vacuum as a perfect sphere. They use this information to figure out how fast the radius of the sphere can expand. From here, they must analyze the bubble in the three possible geometries of spacetime – open, closed, or flat. Regardless, the WIPM team found that the bubble would expand to a size that would result in a big bang.

This new equation allows for some extremely interesting insights into the universe. The hypothesis explains dark energy, the energy that is causing the expansion of spacetime, as a quantity called quantum potential. Quantum potential comes out of the pilot-wave theory, which is a lesser-known interpretation of quantum mechanics (basically, a replacement or completion for quantum theory as we understand it today). Pilot-wave theory is able to reproduce all of the predictions made by current quantum theory, explains things like the Schrodinger’s cat paradox, and adds the quantity of quantum potential.

The biggest problem with the pilot wave theory is it doesn’t make predictions that are unique to the theory. All of the predictions made by pilot-wave are either identical to the more widely accepted interpretation of quantum theory, or the predictions are not testable. That is, until this new derivation from WIPM was released.

Pilot-wave has never taken off because it hasn’t been able to do anything that conventional quantum theory doesn’t already do. Since quantum potential is a key part of this new equation, it’s possible that scientists will reinvestigate the pilot-wave idea, and perhaps push our understanding of the universe one step further.

You can see the WIPM paper on arxiv.

----------

http://arxiv.org/pdf/1404.1207v1.pdf

 

[TaiShang]

Chinese health food producer to acquire company in NZ
Source:Xinhua

Nanjing Sinolife United Co., one of the leading health food producers in China, announced plans on Sunday to buy a New Zealand company.

Shanghai Weiyi, a limited liability company 60 percent owned by Sinolife, will conduct the acquisition of the New Zealand-based Good Health Products Ltd., according to the announcement.

The deal is estimated at over 23 million New Zealand dollars (18 million US dollars).

Good Health has a substantial market share in New Zealand and Australia and has established an online sales network in Asia including China's Hong Kong, Singapore and the Republic of Korea, which is attractive to Sinolife as it is eager to expand abroad.

Sinolife board chairman, Gui Pinghu, expects both sides to gain from the deal and for it to change the traditional cooperative model between Chinese and foreign companies.

Sinolife was listed on the Hong Kong bourse in January.

 

[grandmaster]

China develops first mathematical proof of Universe's origin

Proof that the Universe Could have Come from Nothing? - From Quarks to Quasars

"Proof that the Universe Could have Come from Nothing?

The big bang is supported by a plethora of evidence. As such, the current scientific consensus is that that universe “exploded” into existence about 13.7 billion years ago. Gravitational waves, the cosmic microwave background, and the over abundance of primordial elements all add great weight to the validity of the big bang theory. However, despite all of this evidence, scientists are still left with a nagging question: What caused the big bang? Where did all of this stuff come from?

Image Credit: Chaoss/Shutterstock

Many scientists assume that the universe came from nothing, which is an idea that can only be true in light of quantum theory. Ultimately, quantum fluctuations could allow a universe to spontaneously form from nothing. However, without a mathematical proof, the idea that the universe spontaneously popped into existence has no real substance. And therein was the problem. We didn’t have the math to support the “universe from nothing” hypothesis.

This is where Dongshan He and his team from the Wuhan Institute of Physics and Mathematics (WIPM) comes in. They have managed to develop the first mathematical proof that the big bang could have been the result of quantum fluctuations. The Wheeler-Dewitt equation and the Heisenberg uncertainty principle are at the heart of this new proof.

The Wheeler-Dewitt equation is the first generation of a theory of everything. In the 1960s, John Wheeler and Brice Dewitt came up with a mathematical framework that created an unholy marriage between quantum mechanics and general relativity. The equation lays a lot of the groundwork for the idea of quantum gravity (one of the main problems we have with understanding everything about everything is that we have no model to unite gravity and quantum mechanics). The equations biggest problem is that it doesn’t include time. So it’s not grand unification, but it’s the best we have right now.

Heisenberg’s uncertainty principle, on the other hand, is more widely known. Is its simplest terms, this principle states that an observer cannot know both the location and the momentum of a quantum particle (otherwise, you’d have to violate thermodynamics). From the uncertainty principle, we see that empty space isn’t really empty. Inside the vacuum, particles are allowed to pop in and out of existence due to probabilistic quantum fluctuations (this is where the idea of the “false vacuum” came from.)

So, how does any of this help us? Dongshan explained, “We proved that, once a small true vacuum bubble is created, it has the chance to expand exponentially.”

Image Credit: National Geographic

The WIPM team describe these bubbles of true vacuum as a perfect sphere. They use this information to figure out how fast the radius of the sphere can expand. From here, they must analyze the bubble in the three possible geometries of spacetime – open, closed, or flat. Regardless, the WIPM team found that the bubble would expand to a size that would result in a big bang.

This new equation allows for some extremely interesting insights into the universe. The hypothesis explains dark energy, the energy that is causing the expansion of spacetime, as a quantity called quantum potential. Quantum potential comes out of the pilot-wave theory, which is a lesser-known interpretation of quantum mechanics (basically, a replacement or completion for quantum theory as we understand it today). Pilot-wave theory is able to reproduce all of the predictions made by current quantum theory, explains things like the Schrodinger’s cat paradox, and adds the quantity of quantum potential.

The biggest problem with the pilot wave theory is it doesn’t make predictions that are unique to the theory. All of the predictions made by pilot-wave are either identical to the more widely accepted interpretation of quantum theory, or the predictions are not testable. That is, until this new derivation from WIPM was released.

Pilot-wave has never taken off because it hasn’t been able to do anything that conventional quantum theory doesn’t already do. Since quantum potential is a key part of this new equation, it’s possible that scientists will reinvestigate the pilot-wave idea, and perhaps push our understanding of the universe one step further.

You can see the WIPM paper on arxiv.

----------

http://arxiv.org/pdf/1404.1207v1.pdf

Buddha already saw and said about this about 2500 years ago!

 

[TaiShang]

Singapore signs deals worth $2.3 bn with Chinese province | The BRICS Post


China’s largest foreign investor Singapore has inked 15 agreements worth over 3 billion Singapore dollars ($2.3 billion) with a Chinese province on Monday.

The agreements in financial services, marine economy development, environment and education were signed at the 10th Singapore-Zhejiang Economic and Trade Council meeting held in the city-state.

Singapore’s actual investments in Zhejiang, a coastal province in eastern China, reached $322 million in the first nine months of this year, according to the Department of Commerce of Zhejiang local government. As of October, the cumulative actual investments amounted to $4.14 billion in 1,063 projects.

In the first nine months, bilateral trade increased 8.4 per cent to hit $3.79 billion.

China is Singapore’s top trading partner while Singapore is China’s largest foreign investor.

China allowed direct trading between the yuan and the Singapore dollar from last month, making it easier for Singapore companies to do business with their Chinese counterparts.

Singapore’s Prime Minister Lee Hsien Loong met Chinese President Xi Jinping on the sidelines of the APEC Economic Leaders’ Meeting earlier this month where both leaders vowed to boost economic cooperation.

In a landmark achievement, 21 Asian nations including China and Singapore have recently signed on as founding members of a new infrastructure investment bank which would rival the World Bank.

 

[TaiShang]

China dairy giant opens NZ factory, to spend over $400 mn
November 25, 2014, 5:21 am

Yili announced last Friday it will invest 2 billion yuan ($327 million) in four dairy projects in New Zealand [Xinhua]

Chinese dairy giant Yili launched its first major foreign factory in New Zealand’s South Island on Tuesday with the announcement that it will almost triple its investment in the plant by 2019.


The factory in Glenavy, South Canterbury built at a cost of 236 million NZ dollars ($185.14 million) was built by Oceania Dairy Ltd., a wholly-owned subsidiary of the Yili Industrial Group.

The factory is expected to process 220 million litres of milk generating 33,000 tonnes of milk powder this season.

Yili also confirmed it planned to invest another 400 million NZ dollars ($313.79 million) in the factory, which is already producing infant formula, over the next five years.

“The Oceania Dairy factory at Glenavy is Yili’s first major offshore investment and the company is very focused on ensuring the success of the operation,” said Yili Group executive president Zhang Jianqiu.

“As the world’s largest milk exporter, New Zealand is ideally positioned to work with China to meet the country’s escalating demand for milk,” he said.

“We expect to be handling more than 630 million liters of milk from local farm suppliers by the end of the expansion project in 2019, generating export revenues in excess of 700 million NZ dollars ($549.23 million),” Oceania Dairy chief executive Aidan Johnstone said in the statement.

Increasingly more Chinese prefer overseas dairy products as the reputation of local brands was damaged in the melamine-tainted baby formula scandal in 2008.

Yili has also signed an agreement with Lincoln University of New Zealand to focus research on how to improve nutrition and to ensure quality of dairy products.

Yili, which purchased Oceania in April last year, is listed on the Shanghai stock exchange and claims its 2013 revenue of $7.6 billion makes it the 10th largest dairy company in the world.

 

[bobsm]

NJU develops magic detecting device just second to the U.S. | ENGLISH.JSCHINA.COM.CN

NJU develops magic detecting device just second to the U.S.
2014-11-20 16:08:00

A research team led by Lu Hai, a distinguished professor hired by the College of Electronic Science and Engineering of the Nanjing University (NJU) under the Changjiang Scholars Program, recently made breakthrough for the first time in China in developing a super-sensitive solid ultraviolet single photon detector, allowing China to become the second country to master this core technology after the United States.

The detector, based on the silicon-carbide semiconductor chip technology, can sensitively capture ultraviolet single photons, and it also broke the bottleneck of relying on super-low temperature condition in the past. Moreover, the detector with an apparent low-cost advantage is expected to be widely promoted in such civilian applications as remote detection and positioning of corona and pollution flashover on the high-voltage power transmission lines or power supply lines for high speed trains.

Postscript: The Changjiang Scholars Program is a higher education development program in China jointly established by China’s Ministry of Education and Li Ka Shing Foundation.

 

[TaiShang]

Microsoft to pay $140m in back taxes: report
2014-11-27

Software giant Microsoft Corporation was in the media spotlight Wednesday as it was said to have to pay about $140 million in back taxes to Chinese authorities over involvement in potential cross-border tax evasion, as China vowed to join international efforts to fight against this problem.

"In 2012 the tax authorities of China and the US agreed to a bilateral advanced pricing agreement with regards to Microsoft's operations in China… China receives tax revenues from Microsoft consistent with the terms of the agreed advanced pricing agreement," Microsoft told the Global Times in an e-mail reply on Wednesday.

The company's reply is in response to a Reuters report published Tuesday (US time) that said Microsoft was involved in tax malpractice in China.

Chinese State media Xinhua

News Agency had first reported on Sunday that a US multinational with a name starting with the letter "M" must pay the Chinese government a total of 840 million yuan ($137 million) in back taxes and interest, as well as additional tax of more than 100 million yuan annually in the future.

Reuters alleged that the multinational was Microsoft, saying it was the only company that matches the descriptions of the firm in question in Xinhua's report as being one of the world's top 500 companies and having established a wholly owned subsidiary in Beijing in 1995.

If confirmed, it would be the first major case of multinational corporation cross-border tax evasion in China, Reuters reported on Wednesday.

An advanced pricing agreement sets the tax treatment of methods of booking prices and sales between subsidiaries, a strategy often adopted by multinationals globally.

The State Administration of Taxation, China's top tax regulator, was not immediately available to confirm this matter when reached by the Global Times on Wednesday.

Multinational corporations often practice tax avoidance or evasion by making use of their global presence and transferring profits to countries which charge lower tax rates while allocating tax-deductible expenses and costs to those that charge higher rates, said Zhang Guangtong, vice president of School of Taxation at Central University of Finance and Economics.

"Microsoft's payment in back taxes indicates that it has acknowledged its previous tax malpractice," he told the Global Times Wednesday, noting that the bilateral advanced pricing agreement is the result of negotiations between the company and tax authorities.

Tax evasion is regarded as illegal and is usually subject to a fine, yet it is difficult to find as large corporations usually keep cross-border tax maneuvers a secret.

Given the difficulty in uncovering secret unlawful tax practices, an advanced pricing agreement sets agreed pricing terms recognized by the tax authorities, and the multinational must pay taxes accordingly.

The move is also a reflection of China's commitment to join international law enforcement to clampdown on illegal tax practices, Zhang said.

Combating tax evasion was a key objective for the G20 Leaders Summit held in Australia during November 15-16.

"Tax evasion is prevalent globally, particularly in China," Lü Junshan, a tax lawyer and a director at the Finance and Tax Law Research Society, told the Global Times on Wednesday, noting a large number of multinationals' subsidiaries in China reported low profit or even losses for many years due to such tax malpractices, resulting in heavy losses for China's tax revenues.

According to Microsoft's fiscal 2014 annual report, its overall effective tax rate was 21 percent, which is well below the US and China's standard corporate rates of 35 and 25 percent respectively, triggering skepticism of its funneling earnings through "foreign regional operations."

China's tax regulator has ramped up its efforts against tax evasion in recent years. It recovered 46.86 billion yuan worth of tax revenues in 2013 from multinationals, 100 times the amount it recouped in 2005, the People's Daily newspaper reported in October citing the tax authorities.

The tax payment is the latest setback for Microsoft in China, where it is already under an antitrust investigation.

 

[TaiShang]

Chinese company buys Cooper's share of joint venture

A joint venture founded by China's Chengshan Group and U.S.-based Cooper Tire & Rubber Company will be wholly owned by Chengshan.

According to the announcement by Chengshan on Thursday, the two companies have reached an agreement in which Chengshan will buy the 65 percent of shares held by Cooper in the joint venture at a price of more than 280 million U.S. dollars.

Last year, more than 5,000 Chinese employees of the joint venture, Cooper Chengshan (Shandong) Tire Co. Ltd. in east China's Shandong Province, halted production to

vent discontent over the highly leveraged acquisition of the parent company Cooper by India-based Apollo Tyres Ltd.

Workers feared the acquisition might worsen the joint venture's financial strain and harm their interests.

The large crowd was joined by employees of factories owned by Cooper in the U.S. and Britain. The planned acquisition failed at last.

Chengshan and Cooper agreed in late January to resume production and operation of the joint venture and to give Chengshan the priority of buying Cooper's shares or selling its own in the joint venture.

According to the Chengshan's updated announcement, the new company will be named Pulin Chengshan (Shandong) Tire Co. Ltd. The transaction will be completed by the end of November.

 

[yusheng]

November 28th is the day China stock market shocks the global capital market day; a day of Chinese Shanghai and Shenzhen stock market turnover amounted to 710400000000 yuan (710.4b), about $115700000000(115.7b), passed the record a $99500000000 (99.5b) in America stock market in 2007 July 26 (about 610000000000 yuan). At the same time, China A share market value also surpassed Japan, ranking second in the world.

 

[DeVice]

^
If Chinese government don't control China stock market, the number will be much higher since a long time ago.

I don't understand why they loosen the grip recently.