China Becomes Top 5 U.S. Patent Recipient for First Time | Bloomberg

[MultaniGuy]

US GDP per capita (2016): 57467
China GDP per capita (2016): 8123
India GDP per capita (2016): 1709

In the US, only utterly irresponsible or drug addicts are in poverty.

14.3% of Americans are in poverty for a developed country.

China is still a developing country.

 

[LeGenD]

14.3% of Americans are in poverty for a developed country.

China is still a developing country.

American conception of poverty might be different from the same in developing countries in general.

GDP per capita represent a reasonable cross-country comparison of living standards. Average living standard in the US is much higher than in China at present. However, average living standard in China is much better than in India and Pakistan at present.

 

[F-22Raptor]

Firstly, China consumes 34% more total energy annually than the United States.

Secondly, China buys about 50% more cars than the United States annually.

Cars are important, because it is the most costly consumer good after houses. Since we can't compare houses (because the real estate market is vastly different in different countries), we use car sales as a surrogate measure.

China buys about 25 million cars (technically light vehicles) per year.

The United States buys about 17 million cars per year.

If you use cars as a benchmark, China's economy should be roughly 50% larger than the United States.

50% is pretty close to the 34% more total energy that China consumes. The point is that important metrics point to an already larger Chinese economy today.

50% larger than the US economy? I'm sure institutions such as the IMF and World Bank would love to have your expertise Marty.

 

[LeGenD]

Firstly, China consumes 34% more total energy annually than the United States.

Secondly, China buys about 50% more cars than the United States annually.

Cars are important, because it is the most costly consumer good after houses. Since we can't compare houses (because the real estate market is vastly different in different countries), we use car sales as a surrogate measure.

China buys about 25 million cars (technically light vehicles) per year.

The United States buys about 17 million cars per year.

If you use cars as a benchmark, China's economy should be roughly 50% larger than the United States.

50% is pretty close to the 34% more total energy that China consumes. The point is that important metrics point to an already larger Chinese economy today.

This is not an appropriate comparison.

American society is high-tech and mobile in general. Whereas in China, there is room for people to buy stuff they haven't bought before as they come out of poverty.

Compare the two countries in terms of GDP per capita and you will understand.

 

[Martian2]

50% larger than the US economy? I'm sure institutions such as the IMF and World Bank would love to have your expertise Marty.

China does not have a free-floating currency.

It is whatever the Chinese government sets the exchange rate at.

If the Chinese government sets the exchange rate at 6 Yuans per US dollar, did the Chinese economy magically grow 10% overnight? Of course it didn't. Thus, the current size of the Chinese economy is strictly dictated by the Chinese government.

In the absence of a free-floating exchange rate, we have to use surrogate measures such as total energy consumption and annual car purchases to compare the two countries.
----------

It is ridiculous to compare apples to oranges, right? They are two different things.

The US currency is determined by the market. Hence, "market" exchange rate.

The Chinese currency is NOT determined by the market. It is determined by the Chinese government. Thus, it is useless to compare US market exchange rate GDP to the Chinese government-determined "nominal" GDP.

You cannot compare an apple to an orange.

In the absence of a market-determined Chinese exchange rate, I propose looking at total energy consumption and annual car consumption to compare China and the United States. The benchmark MUST be the same for both countries. In the case of energy consumption and cars, the METRIC IS THE SAME.

Comparing US market-exchange GDP to Chinese government-set GDP is a waste of time. The METRIC IS DIFFERENT.

How does China control the exchange rate of its currency? | PBS News Hour (January 11, 2008)
"The Chinese currency is not 'convertible,' which means it is not traded on a market but managed by the government."

 

[Martian2]

Let's try a thought-experiment.

We have three reliable pieces of information.

In 2017, Country A consumed 3,053 MTOE (Million Tonnes Oil Equivalent) of energy.
In 2017, Country B consumed 2,273 MTOE.

In 2017, Country A purchased 25 million cars.
In 2017, Country B purchased 17 million cars.

In 2017, Country A consumed 6 trillion kilowatt-hours of electricity.
In 2017, Country B consumed 4 trillion kilowatt-hours of electricity.

Country A consumed 34% more total energy, bought almost 50% more cars, and consumed 50% more total electricity than Country B.

Which country has the bigger economy?

Did you pick Country A? If you did, you think China has a larger economy than the United States.

 

[q12093487q]

Let's try a thought-experiment.

We have three reliable pieces of information.

In 2017, Country A consumed 3,053 MTOE (Million Tonnes Oil Equivalent) of energy.
In 2017, Country B consumed 2,273 MTOE.

In 2017, Country A purchased 25 million cars.
In 2017, Country B purchased 17 million cars.

In 2017, Country A consumed 6 trillion kilowatt-hours of electricity.
In 2017, Country B consumed 4 trillion kilowatt-hours of electricity.

Country A consumed 34% more total energy, bought almost 50% more cars, and consumed 50% more total electricity than Country B.

Which country has the bigger economy?

Did you pick Country A? If you did, you think China has a larger economy than the United States.

This is what always puzzles me，with all these statistical results suggesting china should already have a larger GDP than USA ，but the reality is opposite，my only conclusion is that Yuan is currently highly undervalued or the dollar is highly overvalued.

Just have a look at the serious imbalance between Chinese-American trading number you will know there must be something wrong with currency exchange rate

I guess maybe chinese government want the Yuan to stay low right now to avoid international capital flow in ,so china can upgrade its industrial structure quietly and steaily？

 

[Martian2]

Let's try a real-world test of our annual car sales comparison.

US exchange rate GDP: $20 trillion (annual car sales 17 million)
Japan exchange rate GDP: $5 trillion (annual car sales 4 million)

Using the same market-determined exchange rates, we conclude the US economy is four times larger than Japan's (e.g. $20 trillion / $5 trillion = 4).

Now, let's look at the car sales ratio. 17 million US car sales per year / 4 million Japanese car sales per year = 4.25 times larger US economy than Japan's

The agreement between the market-exchange rate multiple and the car sales ratio is pretty close: 4 vs. 4.25

We don't have the market-exchange rate data for China's GDP, because the Chinese government controls its currency exchange rate.

However, we do have the annual car sales data for China.

25 million Chinese car sales yearly / 17 million US car sales = 1.47 larger Chinese economy vs. US economy

The 1.47 larger Chinese economy is in close agreement with the 1.34 multiple for Chinese annual energy consumption vs. US consumption. The multiple is also very close to the 1.5 multiple of Chinese electricity consumption vs. US consumption.

In the absence of market-exchange Chinese GDP, car sales looks like a pretty accurate indicator. The data points towards a larger EXISTING Chinese economy that is 1.47 times bigger than the US economy.

 

[TaiShang]

This is what always puzzles me，with all these statistical results suggesting china should already have a larger GDP than USA ，but the reality is opposite，my only conclusion is that Yuan is currently highly undervaled or the dollar is highly overvaled.

Just have a look at the serious imbalance between Chinese-American trading number you will know there must be something wrong with currency exchange rate

I guess maybe chinese government want the Yuan to stay low right now to avoid international capital flow in ,so china can upgrade its industrial structure quietly and steaily？

I think China will continue to adopt a very cautious, step by step approach to let Yuan grow in value.

First, it still makes more sense for China to keep Yuan undervalued because, as a developing economy, China still needs hard cash from exports (if it does not want to grow on borrowed money like SP12 style) although the share of exports in total GDP of China has been declining while the GDP is growing.

Second, having a "smaller" GDP makes more strategic sense because it allows the US (and the West) to enjoy the continued sense of superiority. It also keeps smaller nations at bay which would otherwise demand more from China (protection, help etc.). China does not want (and won't) a US style military hegemonism way beyond its strategic borders.

The Indian SP12 member who often talks about population divident is lost to the idea that his SP12 is sitting on a population time-bomb while his adopted country is being ethnically transformed, reducing the quality of population, as seen in the lower quality US military servicemen.

***

Yuan IPO in HK may raise cash for Belt and Road Initiative
China Daily, January 10, 2018

The government is considering giving a green light to high-quality companies involved in the Belt and Road Initiative to raise funds through a yuan-denominated initial public offering in the Hong Kong stock market.


The move would strengthen the market's role as a key offshore yuan business hub, according to a former vice-minister with the nation's top economic regulator.


The government would select some top companies related to the initiative and facilitate their fundraising in the offshore market, but there is no timeline for when an IPO plan might take place because it remains under discussion, said Zhang Xiaoqiang, vice-chairman of the China Center for International Economic Exchanges. Zhang was consulted on the development plan for the Guangdong-Hong Kong-Macao Greater Bay Area, which has not yet been publicly released.


"Through such attempts, the government hopes Hong Kong would be able to play a greater role in facilitating the initiative on the investment front and further promoting internationalization of the yuan," Zhang said.


Hong Kong's lack of restrictions on capital and currency convertibility makes it ideal as a core center for raising capital for Belt and Road Initiative-related projects, he added.


Huang Shaoming, head of the macroeconomy research department of Haitong International Securities, said raising more money in the offshore market will be helpful to fill the financing gap related to the initiative. That's especially so as the appetite to invest in initiative-related projects is under downward pressure from such external challenges as the corporate tax cut in the United States and China's increased efforts to lower leverage ratios.


Huang cited data from the Asian Development Bank saying more than 50 percent of the financing of infrastructure projects in Asia will need to be filled by private capital as of 2020.


In the meantime, the government push would help boost the current lackluster sentiment toward renminbi-denominated IPOs in the Hong Kong market.


In May 2011, Hong Kong tycoon Li Ka-shing's Hui Xian real estate investment trust completed Hong Kong's first yuan-denominated IPO, raising 12.1 billion yuan ($1.85 billion).


Since then, there has been no major renminbi-denominated IPO in Hong Kong, and securities traded in renminbi have only a negligible share of the main board's total turnover.


More overseas capital would be willing to bet on renminbi-denominated equities once foreign exchange rate risks are dealt with, providing that the yuan's exchange rate can be stabilized in the next few years, said Billy Mak Sui-choi, an associate professor at the Finance and Decision Sciences Department of Hong Kong Baptist University.


He said he expects the renminbi exchange rate to be stable in the medium term, while long-term prospects depend on Chinese economic growth.

http://www.china.org.cn/business/2018-01/10/content_50210082.htm

 

[Han Patriot]

Let's try a thought-experiment.

We have three reliable pieces of information.

In 2017, Country A consumed 3,053 MTOE (Million Tonnes Oil Equivalent) of energy.
In 2017, Country B consumed 2,273 MTOE.

In 2017, Country A purchased 25 million cars.
In 2017, Country B purchased 17 million cars.

In 2017, Country A consumed 6 trillion kilowatt-hours of electricity.
In 2017, Country B consumed 4 trillion kilowatt-hours of electricity.

Country A consumed 34% more total energy, bought almost 50% more cars, and consumed 50% more total electricity than Country B.

Which country has the bigger economy?

Did you pick Country A? If you did, you think China has a larger economy than the United States.

Bro, you need to understand US includes the casino GDP of wall street which is nothing more than credit pushing. China invest billions in HSR, they invest to bail out casino banks. Tht's the difference. However, the average living standard of America is definitely better than China, more jobs, less population, less competition, more space. That's why China needs to reduce her population, gradually, there is no other way to achieve that kind of living standard. In China, everything is under constant competition, the stress is bad for the society. India is in an even shittier state, those who survived India end up some of the world's most stress resistant people.

 

[AndrewJin]

US GDP per capita (2016): 57467
China GDP per capita (2016): 8123
India GDP per capita (2016): 1709

In the US, only utterly irresponsible or drug addicts are in poverty.

Not a good trend

See the blue part.....

Bro, you need to understand US includes the casino GDP of wall street which is nothing more than credit pushing. China invest billions in HSR, they invest to bail out casino banks. Tht's the difference. However, the average living standard of America is definitely better than China, more jobs, less population, less competition, more space. That's why China needs to reduce her population, gradually, there is no other way to achieve that kind of living standard. In China, everything is under constant competition, the stress is bad for the society. India is in an even shittier state, those who survived India end up some of the world's most stress resistant people.

Intangible GDP, America's biggest assets.

 

[Martian2]

Mainland China has three companies among USPTO Top 50 Companies list

China's Huawei is the world's largest telecommunications equipment manufacturing company. It had sales of $92 billion in 2017. Huawei is ranked #20 among all companies worldwide in USPTO (United States Patent and Trademark Office) patent grants for 2017.

Beijing OptoElectronics (BOE) Technology Group is ranked at #21.

Shenzhen China Star Optoelectronics Technology Co., Ltd. is a subsidiary of TCL Corporation and ranked at #45.

Mainland China is making good progress in securing USPTO patents to defend its technological innovations in the important US market.

Taiwan has one company among the Top 50. TSMC is ranked #9. TSMC had $32 billion in sales for 2017 and a net profit of $10 billion. TSMC is the world's largest semiconductor fabrication foundry with 56% worldwide marketshare.

TSMC will implement its advanced 7nm logic-chip semiconductor fabrication technology to build Apple's A12 processor in the second half of 2018.
----------

2017 Top 50 US Patent Assignees | ifi Claims Patent Services

----------

BOE Technology Group | Forbes

----------

Company Overview of Shenzhen China Star Optoelectronics Technology Co., Ltd. | Bloomberg