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In the next decade China will loose its military and economic edge

No disrespect to Chinese on this forum but they think they are a technology economy where in fact, there are a slave labor country that can be replaced by any country, which it will as explained in the OP. China is stealing tech from other countries but the problem with that. When you steal, nobody will buy from you. They think China is like Japan. It needs light years to catch up with Japan in terms of technology. Now Japan is surging again. They have no chance with keeping up. Also Japan is investing in their allies in the region in terms of technology and economy. At the end of this decade China will be checkmate. They will be outcompeted by cheaper countries.

China had 6,597 USPTO patents last year. Turkey had 83. Chinese don't care what Turks think.

If Turks can conduct their own spacewalk then we'll talk. Until that time, Turks are irrelevant.

For everyone's information, my avatar is a Chinese Taikonaut with a Feitian spacesuit that was actually used on a Shenzhou mission.

"A Chinese spacesuit is displayed at the Shanghai Science & Technology Museum." (Source: China wants to dock in space – Light Years - CNN.com Blogs )


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.

Greater China comprises mainland China, Hong Kong, and Taiwan.
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PATENT COUNTS BY ORIGIN AND TYPE, CALENDAR YEAR 2013 | U.S. PATENT AND TRADEMARK OFFICE

Patents granted by the United States for the year 2013.

1. U.S. 147,652 patents
2. Japan 54,170
(Greater China 19,471)
3. Germany 16,605
4. South Korea 15,745
5. Taiwan 12,118
6. Canada 7,272
7. China 6,597
8. France 6,555
9. U.K. 6,551
10. Italy 2,930
...
India 2,474
Singapore 857
Hong Kong 756 (Patent office counts Hong Kong as a separate entity)
Russian Federation 432
Brazil 286
Malaysia 230

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

Mexico 204
South Africa 181
Poland 113
Thailand 104
Turkey 83
Argentina 80
Greece 70
Chile 57
Ukraine 38
Egypt 34
Philippines 34
Indonesia 15
Vietnam 10
 
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Mexico 204
South Africa 181
Poland 113
Thailand 104
Turkey 83
Argentina 80
Greece 70
Chile 57
Ukraine 38
Egypt 34
Philippines 34
Indonesia 15
Vietnam 10


NO Turkey 83 wow 555555555555555555
 
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Mexico 204
South Africa 181
Poland 113
Thailand 104
Turkey 83
Argentina 80
Greece 70
Chile 57
Ukraine 38
Egypt 34
Philippines 34
Indonesia 15
Vietnam 10


NO Turkey 83 wow 555555555555555555

It will take Turkey 79.5 years to match China's USPTO patents for last year alone.

Calculation:

6,597 Chinese USPTO patents / 83 Turkish USPTO patents = 79.5 years
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China had 23.5 million light-vehicle sales in 2014. Turkey had 0.8 million.

Who do you think has the stronger economy? China had 23.5 million light-vehicle (ie. cars, SUVs, and minivans) sales in 2014. Turkey had a ridiculously tiny 0.8 million.

References:

3 Auto Stocks Steering Toward Q4 Earnings Beat - January 27, 2015 - Zacks.com
"Further, sales in China reached an all-time high of 23.5 million last year...."

ODD, Automotive Distributors' Association, Turkey Passenger Car and Light Commercial Vehicle Market, 2014... -- ISTANBUL, January 12, 2015 /PRNewswire/ --
"Turkish passenger car and light commercial vehicle total market decreased 10.04% in 2014 compared to the last year, to 767,681."
 
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It will take Turkey 79.5 years to match China's USPTO patents for last year alone.

Calculation:

6,597 Chinese USPTO patents / 83 Turkish USPTO patents = 79.5 years
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China had 23.5 million light-vehicle sales in 2014. Turkey had 0.8 million.

Who do you think has the stronger economy? China had 23.5 million light-vehicle (ie. cars, SUVs, and minivans) sales in 2014. Turkey had a ridiculously tiny 0.8 million.

References:

3 Auto Stocks Steering Toward Q4 Earnings Beat - January 27, 2015 - Zacks.com
"Further, sales in China reached an all-time high of 23.5 million last year...."

ODD, Automotive Distributors' Association, Turkey Passenger Car and Light Commercial Vehicle Market, 2014... -- ISTANBUL, January 12, 2015 /PRNewswire/ --
"Turkish passenger car and light commercial vehicle total market decreased 10.04% in 2014 compared to the last year, to 767,681."
Turkey is not a technology economy (yet). The question is not really about Turkey right now who is by the way succesful in achieving their economic targets. The problem is China who is not being able to achieve their targets and soon to be outcompeted by other cheaper countries in the region in terms of production with the help of Japan.
 
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No disrespect to Chinese on this forum but they think they are a technology economy where in fact, there are a slave labor country that can be replaced by any country, which it will as explained in the OP. China is stealing tech from other countries but the problem with that. When you steal, nobody will buy from you. They think China is like Japan. It needs light years to catch up with Japan in terms of technology. Now Japan is surging again. They have no chance with keeping up. Also Japan is investing in their allies in the region in terms of technology and economy. At the end of this decade China will be checkmate. They will be outcompeted by cheaper countries.

China became too greedy too soon. The Chinese fell prey to their own propaganda. They believed they were invincible and managed to make whole SEA their enemy, plus India and USA. That's too many countries for China to handle alone. The fact that China is placing their bets on failed states is not helping their case either. The Chinese infra sector is going to be hit soon, mark my words. Their investment is trapped and they are not getting any returns.
 
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China became too greedy too soon. The Chinese fell prey to their own propaganda. They believed they were invincible and managed to make whole SEA their enemy, plus India and USA. That's too many countries for China to handle alone. The fact that China is placing their bets on failed states is not helping their case either. The Chinese infra sector is going to be hit soon, mark my words. Their investment is trapped and they are not getting any returns.
It is a typical paper tiger story of China. The cracks are already showing in the paper but they still insist that the tiger is not made of paper. It is the typical Chinese dilema. After being ruled by foreign powers for centuries they don't want to return to that. There is not much to do. The writing is on the wall. They made the wrong economic and political decisions as you said. It is a slow-motion crash course that we will all have to watch. In return we will see a higher Japanese presence in the region which will facilitate peace and prosperity in the region.
 
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Turkey is not a technology economy (yet). The question is not really about Turkey right now who is by the way succesful in achieving their economic targets. The problem is China who is not being able to achieve their targets and soon to be outcompeted by other cheaper countries in the region in terms of production with the help of Japan.

Tell me, how many of China's military technological accomplishments can Turkey match (see list below)?

You claim China is losing its military edge (see thread title). I disagree. Chinese military milestones are becoming more numerous per decade.
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China's Military Technological Milestones - includes China's AEGIS KILLER YJ-18 Supersonic EMP Missile

210 B.C. (2,200 years ago): China invents chrome-plating technology during Qin Dynasty under emperor Qin Shihuang.

1964: China detonated a 22-kiloton atomic bomb on October 16, 1964.
1967: China detonated a 3.3-megaton thermonuclear bomb on June 17, 1967.

1970: China successfully sends its first satellite into space - the Dong Fang Hong I
1971: China successfully launched its first DF-5 ICBM with 12,000-15,000km range and capable of carrying a five-megaton "city buster" thermonuclear warhead.
1972: China builds its first atomic clock at Shanghai Astronomical Observatory (SHAO).

1984: China built its first cryogenic YF-73 rocket engine.
1986: China built an indigenous DD3 nickel-based single-crystal superalloy. (Earliest English article citation is year 1995. However, the first published Chinese research paper on DD3 discovery was in 1986.)
1988: China test-detonates a 1- to 20-kiloton Neutron Bomb on September 29, 1988.
1988: Julang 1 (JL-1) SLBM is fully operational with the successful test firing from a submerged Xia SSBN in September 1988.

1998: Chinese J-10 Vigorous Dragon had its first flight. Officially unveiled in 2007.
1998: "At the 1998 Zhuhai Air Show, the [Chinese] Seek Optics Company displayed information of its stealth coating and software for stealth shaping.[63]"
1999: Chinese JSTARS Tu-154M/D Electronic Intelligence Aircraft in service (e.g. Careless B-4138).

2000: China successfully sends its first GPS satellite (Beidou) into space.
2001: Chinese Type 99 Main Battle Tank in service.
2002: China's Type 093 Shang-class nuclear attack submarine (SSN) is launched.
2003: China sends its first taikonaut Yang Liwei into space.
2003: China's KJ-2000 AWACS with domestic AESA radar has its first flight.
2003*: DD6 is China's indigenous second-generation nickel-based single-crystal superalloy (Earliest English article citation is year 2003. However, actual DD6 discovery was probably closer to year 2000.)
2005: China's Type 052C Lanzhou-class AESA-equipped destroyer entered service.
2006: China's WS-10A turbofan engine certified for production.
2006: First static test of the WS-13 turbofan engine with single-crystal turbine blades.
2007: China clones world's first rabbit.
2007: Chinese direct-ascent ASAT shoots down orbiting satellite.
2007: Chinese DF-31A MIRVed ICBM in service.
2008: China conducts its first spacewalk with taikonaut Zhai Zhigang.
2008: China orbits its first data tracking and relay communications satellite - Tianlian I
2009: Public disclosure of China's 5,000km "Underground Great Wall"

2010: China builds world's-fastest supercomputer Tianhe-1A.
2010: Chinese GBI (i.e. ground based interceptor) shoots down a ballistic missile during mid-course phase.
2010: Chinese WZ-10 Attack Helicopter in service.
2010: Chinese Type 094 Jin-class nuclear missile ballistic submarine (SSBN) in service.
2010: Chinese Yaogan 9 NOSS (Naval Ocean Surveillance System) satellite trio in orbit.
2011: Chengdu J-20 stealth superfighter has first flight on January 11, 2011.
2012: China sends its first woman taikonaut Liu Yang into space on a 10-day mission.
2012: Chinese Jialong manned submersible completes world record-breaking 7,000 meter dive.
2012: First sighting of next-generation AESA radar for Type 052C destroyer.
2012: DF-41 10-MIRV-capable ICBM with 12,000-15,000km range had first flight on July 24, 2012.
2012: Chinese Type 056 corvette enters service.
2012: New Chinese thermonuclear-capable IRBM with 4,000km range (to potentially strike Guam).
2012: China's Beidou System successfully covers all of China and the surrounding region.
2012: Shenyang J-31 medium-range stealth fighter has first flight on October 31, 2012.
2012: China builds its first optical clock (which is more precise than an atomic clock).
2013: China's Y-20 heavy-lift military transport conducts first flight on January 26, 2013.
2013: "The Chinese military has deployed its new anti-ship ballistic missile [ASBM or "carrier killer"] along its southern coast facing Taiwan, the Pentagon’s top military intelligence officer said today."
2013: "After a round of successful testing in 2012, the JL-2 appears ready to reach initial operational capability in 2013." (Source [p. 39, Pentagon 2013 report on Chinese Military Power]: http://www.defense.gov/pubs/2013_China_Report_FINAL.pdf)
2013: China has deployed H-6K "God of War" bomber that is capable of carrying thermonuclear-capable CJ-10 cruise missiles.
2013: Bill Gertz reports China is building 1,240 miles of special tracks for rail-mobile ICBMs.
2013: China deploys advanced SRBM with MARV (maneuverable reentry vehicle) thermonuclear-capable warhead
2013: China's "Lijian stealth UAV from Hongdu has made its first flight on Nov. 21 at 13:00 local time. The flight was 20 minutes."
2013: China's Yutu rover separates from Chang'e-3 Moon Lander on December 14, 2013.
2013: China's Z-20 military medium-lift 10-ton utility helicopter has its first flight on December 23, 2013
2014: China conducts its first HGV (hypersonic glide vehicle) flight on January 9, 2014.
2014: China conducts first flight test of its WS-20 large turbofan high-bypass engine.
2014: Deagel reports China's YJ-18 AEGIS KILLER has reached IOC (ie. initial operational capability) and it is currently an exclusive offensive weapon on the Chinese Type 052D destroyer

YJ-18 | Deagel

pef2OHj.jpg

D9SqJ3n.jpg


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"Published on Sep 19, 2013

Some Chinese media websites release a clip showing PLA might have been successful in making an Eagle Strike missile dubbed YJ-18. It will travel at subsonic speed initially, and at Mach 3 when approaching the target within the last 46 kilometers. What's amazing is that the missile can change its path showing 'S' pattern making it hard to intercept, even for Aegis class ships as claimed by the report."

[Note: Thank you to JDUS2020 for the video.]
 
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Tell me, how many of China's military technological accomplishments can Turkey match (see list below)?
----------

China's Military Technological Milestones - includes China's AEGIS KILLER YJ-18 Supersonic EMP Missile

210 B.C. (2,200 years ago): China invents chrome-plating technology during Qin Dynasty under emperor Qin Shihuang.

1964: China detonated a 22-kiloton atomic bomb on October 16, 1964.
1967: China detonated a 3.3-megaton thermonuclear bomb on June 17, 1967.

1970: China successfully sends its first satellite into space - the Dong Fang Hong I
1971: China successfully launched its first DF-5 ICBM with 12,000-15,000km range and capable of carrying a five-megaton "city buster" thermonuclear warhead.
1972: China builds its first atomic clock at Shanghai Astronomical Observatory (SHAO).

1984: China built its first cryogenic YF-73 rocket engine.
1986: China built an indigenous DD3 nickel-based single-crystal superalloy. (Earliest English article citation is year 1995. However, the first published Chinese research paper on DD3 discovery was in 1986.)
1988: China test-detonates a 1- to 20-kiloton Neutron Bomb on September 29, 1988.
1988: Julang 1 (JL-1) SLBM is fully operational with the successful test firing from a submerged Xia SSBN in September 1988.

1998: Chinese J-10 Vigorous Dragon had its first flight. Officially unveiled in 2007.
1998: "At the 1998 Zhuhai Air Show, the [Chinese] Seek Optics Company displayed information of its stealth coating and software for stealth shaping.[63]"
1999: Chinese JSTARS Tu-154M/D Electronic Intelligence Aircraft in service (e.g. Careless B-4138).

2000: China successfully sends its first GPS satellite (Beidou) into space.
2001: Chinese Type 99 Main Battle Tank in service.
2002: China's Type 093 Shang-class nuclear attack submarine (SSN) is launched.
2003: China sends its first taikonaut Yang Liwei into space.
2003: China's KJ-2000 AWACS with domestic AESA radar has its first flight.
2003*: DD6 is China's indigenous second-generation nickel-based single-crystal superalloy (Earliest English article citation is year 2003. However, actual DD6 discovery was probably closer to year 2000.)
2005: China's Type 052C Lanzhou-class AESA-equipped destroyer entered service.
2006: China's WS-10A turbofan engine certified for production.
2006: First static test of the WS-13 turbofan engine with single-crystal turbine blades.
2007: China clones world's first rabbit.
2007: Chinese direct-ascent ASAT shoots down orbiting satellite.
2007: Chinese DF-31A MIRVed ICBM in service.
2008: China conducts its first spacewalk with taikonaut Zhai Zhigang.
2008: China orbits its first data tracking and relay communications satellite - Tianlian I
2009: Public disclosure of China's 5,000km "Underground Great Wall"

2010: China builds world's-fastest supercomputer Tianhe-1A.
2010: Chinese GBI (i.e. ground based interceptor) shoots down a ballistic missile during mid-course phase.
2010: Chinese WZ-10 Attack Helicopter in service.
2010: Chinese Type 094 Jin-class nuclear missile ballistic submarine (SSBN) in service.
2010: Chinese Yaogan 9 NOSS (Naval Ocean Surveillance System) satellite trio in orbit.
2011: Chengdu J-20 stealth superfighter has first flight on January 11, 2011.
2012: China sends its first woman taikonaut Liu Yang into space on a 10-day mission.
2012: Chinese Jialong manned submersible completes world record-breaking 7,000 meter dive.
2012: First sighting of next-generation AESA radar for Type 052C destroyer.
2012: DF-41 10-MIRV-capable ICBM with 12,000-15,000km range had first flight on July 24, 2012.
2012: Chinese Type 056 corvette enters service.
2012: New Chinese thermonuclear-capable IRBM with 4,000km range (to potentially strike Guam).
2012: China's Beidou System successfully covers all of China and the surrounding region.
2012: Shenyang J-31 medium-range stealth fighter has first flight on October 31, 2012.
2012: China builds its first optical clock (which is more precise than an atomic clock).
2013: China's Y-20 heavy-lift military transport conducts first flight on January 26, 2013.
2013: "The Chinese military has deployed its new anti-ship ballistic missile [ASBM or "carrier killer"] along its southern coast facing Taiwan, the Pentagon’s top military intelligence officer said today."
2013: "After a round of successful testing in 2012, the JL-2 appears ready to reach initial operational capability in 2013." (Source [p. 39, Pentagon 2013 report on Chinese Military Power]: http://www.defense.gov/pubs/2013_China_Report_FINAL.pdf)
2013: China has deployed H-6K "God of War" bomber that is capable of carrying thermonuclear-capable CJ-10 cruise missiles.
2013: Bill Gertz reports China is building 1,240 miles of special tracks for rail-mobile ICBMs.
2013: China deploys advanced SRBM with MARV (maneuverable reentry vehicle) thermonuclear-capable warhead
2013: China's "Lijian stealth UAV from Hongdu has made its first flight on Nov. 21 at 13:00 local time. The flight was 20 minutes."
2013: China's Yutu rover separates from Chang'e-3 Moon Lander on December 14, 2013.
2013: China's Z-20 military medium-lift 10-ton utility helicopter has its first flight on December 23, 2013
2014: China conducts its first HGV (hypersonic glide vehicle) flight on January 9, 2014.
2014: China conducts first flight test of its WS-20 large turbofan high-bypass engine.
2014: Deagel reports China's YJ-18 AEGIS KILLER has reached IOC (ie. initial operational capability) and it is currently an exclusive offensive weapon on the Chinese Type 052D destroyer

YJ-18 | Deagel

pef2OHj.jpg

D9SqJ3n.jpg


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"Published on Sep 19, 2013

Some Chinese media websites release a clip showing PLA might have been successful in making an Eagle Strike missile dubbed YJ-18. It will travel at subsonic speed initially, and at Mach 3 when approaching the target within the last 46 kilometers. What's amazing is that the missile can change its path showing 'S' pattern making it hard to intercept, even for Aegis class ships as claimed by the report."

[Note: Thank you to JDUS2020 for the video.]
Most of it is stolen or given by the Soviet and the Russians. We all know this. I don't want to return to the story of the paper tiger.
 
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China is growing stronger technologically, not weaker

China's GDP: Bigger Than You Think - Businessweek

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Largest machine tool manufacturers based on revenue 2014 | Statistic

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Bloomberg Business

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Chart:

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As the U.S. Cuts R&D Spending, China Is Raising Its Stake - Businessweek

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Sources:

China High Speed Rail, China High Speed Train, China Bullet Trains, China Railway Network
China Ascendant | Science & Technology | Chemical & Engineering News

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China is the new leader on Nature Publishing Index (Asia)

Nature is one of the most prestigious science journals in the world. For the first time, China has published more papers in Nature than Japan. The key metric is the "corrected count" (or CC). The CC makes the proper adjustment to divide credit on joint research collaboration among countries.

Year-to-date, China is responsible for 343.27 articles that Nature accepted for publication. Japan trails at a distant 291.34. The year is practically over and there is no time for Japan to make up the difference. Next year, China will officially pass Japan in the number of science papers published in Nature when all of the data has been collected for year 2014.

This is a momentous shift as China claims the crown of the top rank on the Nature Publishing Index (NPI) for the Asia-Pacific region.
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Nature Publishing Index - Available in 20th June Nature - Advertising at NPG

"The Nature Publishing Index is an international ranking of top level research institutions based on the number of articles published in Nature’s world renowned research journals. We have created a database to derive rankings based on publication output....

The Nature Publishing Index provides valuable insight into the quality and quantity of research being carried out by top research organizations across the globe. The publishing rankings will recognize only the top countries and institutions that have produced quality research...."

Country rankings | Nature Publishing Index Asia-Pacific | Nature Publishing Group

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Lenovo is not the world largest computer company, they are the world largest NOTEBOOK MAKER.

Huawei IS NOT THE WORLD LARGEST TELECOMMUNICATION COMPANY, AT&T is. Huawei have about 40 billions USD revenue, while AT&T have about 120 billions...

Huawei is about the same size as Telstra in Australia, they are, the largest telecommunication equipment maker tho
 
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Most of it is stolen or given by the Soviet and the Russians. We all know this. I don't want to return to the story of the paper tiger.

Give me a break. You're a conspiracy theorist.

Russia doesn't have China's HGV (ie. hypersonic glide vehicle) or YJ-18 maneuverable warhead anti-ship Mach 3 missile. Also, China's thermonuclear warhead is based on refraction of X-rays. The Soviets/Russians used a layer-cake design and later changed to the American X-ray reflection.

Russia does not have the technology to build a Chinese DFH-4 10,000-pound 15-year-lifespan telecommunications satellite with 52 transponders. The Russians buy theirs from the Europeans.

Russia has never built an Aegis-class destroyer. In contrast, China built the Type 052C and Type 052D Aegis-class destroyers with AESA radar. The Russians couldn't miniaturize the components to fit the limited space on a destroyer.

The Russians have never come close to holding the title of the world's fastest supercomputer. In contrast, China has held the title twice with the Tianhe-1 and Tianhe-2 supercomputers. China is still the current holder of the world's fastest supercomputer at 33.86 petaflops.

China has succeeded in two shoot-downs of ballistic missiles with a Chinese GBI (ie. ground based interceptor). The Russians have no such technology.

China spent 16 years to build the carrier-killer ASBM (ie. anti-ship ballistic missile). The Russians also never had this technology.

China has shot down a tiny orbiting 4-feet-cubed satellite with a direct-ascent ASAT. The Russians only have a crude and time-consuming co-orbiting satellite killer.

China has built two true fifth-generation stealth fighter prototypes. The Russian T-50/Pak Fa is not a true fifth-generation stealth fighter. The Russian version does not have an S-duct and its metallic engine pods are exposed.

Logic dictates that China is not copying or stealing Russian technology as you allege. China cannot copy/steal technology that does not exist in Russia. Hence, I've proven that you are a conspiracy theorist and you believe in crazy things.

Lenovo is not the world largest computer company, they are the world largest NOTEBOOK MAKER.

Huawei IS NOT THE WORLD LARGEST TELECOMMUNICATION COMPANY, AT&T is. Huawei have about 40 billions USD revenue, while AT&T have about 120 billions...

Huawei is about the same size as Telstra in Australia

Huawei is a telecommunications manufacturer. AT&T is a retail phone company. In that category, China Mobile is the world's largest.

Lenovo passed HP to become the world's largest computer manufacturer.

You don't know what you're talking about.
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Citations.

Huawei knocks off Ericsson as world's biggest telecom vendor - TeamSpirit® Voice & Video engine

World's Top PC Maker Lenovo Posts 36% Profit Hike - Forbes
 
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Give me a break. You're a conspiracy theorist.

Russia doesn't have China's HGV (ie. hypersonic glide vehicle) or YJ-18 maneuverable warhead anti-ship Mach 3 missile. Also, China's thermonuclear warhead is based on refraction of X-rays. The Soviets used a layer-cake design and later changed to the American X-ray reflection.



Huawei is a telecommunications manufacturer. AT&T is a retail phone company. In that category, China Mobile is the world's largest.

Lenovo passed HP to become the world's largest computer manufacturer.

You don't know what you're talking about.
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Citations.

Huawei knocks off Ericsson as world's biggest telecom vendor - TeamSpirit® Voice & Video engine

World's Top PC Maker Lenovo Posts 36% Profit Hike - Forbes

lol dude, do you know what is telecommunication?

You said Biggest Telecommunication conpany Huawei, according to the reference you quote, is

telco infrastructure maker in the world.

Now, unless you actually think the biggest telecommunication field is ONLY about telco infrastructure (Which is laying cable, exchange or hubs) then Huawei IS NOT the world Largest Telco in the world. AT&T, a telecommunication company, IS

And retail fixed phone network, mobile phone network, wireless boardband network, telegraphic network and wireless boardcasting network were all fields of Telecommunications...

You simply got the wrong category in your post

And HP, at revenue above 110 Billions US is the Biggest Computer Company, Lenovo have more Notebook salez than HP but still at 38 Billions US.

Being the biggest company in the field not necessarily have the biggest sale, sale is only one part of a company, you still have many more field involve, technology development, R&D and so on...
 
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It is a typical paper tiger story of China. The cracks are already showing in the paper but they still insist that the tiger is not made of paper. It is the typical Chinese dilema. After being ruled by foreign powers for centuries they don't want to return to that. There is not much to do. The writing is on the wall. They made the wrong economic and political decisions as you said. It is a slow-motion crash course that we will all have to watch.

If USA applies anti-dumping laws then the Chinese economy will take a further hit. Chinese economy is based on mass production of consumer goods.
 
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Why China Is "The World's Factory" (AAPL)


Why China Is "The World's Factory"

By Prableen Bajpai | October 22, 2014 AAA |



Question: What do Lightening McQueen, a Nike sneaker and an iPad have in common? Answer: China. Chinese products seem to be everywhere: the majority of tags, labels and stickers display the legend “Made in China.” The Western consumer may ask, “why is everything made in China?” Some may think the ubiquity of Chinese products is due to the abundance of cheap Chinese labor that brings down the production costs, but there is much more to it. Here are five reasons China is "the world's factory.”

Lower Wages

China is home to approximately 1.35 billion people, which makes it the most populous country in the world. The law of supply and demand tells us that since the supply of workers is greater than the demand for low-wage workers, wages stay low. Moreover, the majority of Chinese were rural and lower-middle-class or poor and until the late 20th century when internal migration turned the country's rural-urban distribution upside-down. Immigrants to industrial cities are willing to work many shifts for low wages.

China doesn’t follow (not strictly at least) laws related to child labor or minimum wages, which are more widely observed in the West. However, this situation may change. According to the China Labour Bulletin, from 2009 to 2014 minimum wages have almost doubled in mainland China. Shanghai’s minimum hourly rate is now up to 17 yuan ($2.78) per hour or 1,820 yuan ($297.15) a month. In Shenzhen the rate is 1,808 yuan per month ($295.19) and 16.50 yuan ($2.69) per hour based on an exchange rate of 1 yuan = $0.16. The huge labor pool in China helps to produce in bulk, accommodate any seasonal industry requirement, and even cater to sudden rises in the demand schedule. (For more, see: Do Cheap Imported Goods Cost Americans Jobs?)

Business Ecosystem

Industrial production does not take place in isolation, but rather relies on networks of suppliers, component manufacturers, distributors, government agencies and customers who are all involved in the process of production through competition and cooperation. The business ecosystem in China has evolved quite a lot in the last thirty years. For example Shenzhen, a city bordering Hong Kong in the south-east, has evolved as a hub for the electronics industry. It has a cultivated an ecosystem to support the manufacturing supply chain, including component manufacturers, low cost workers, a technical workforce, assembly suppliers and customers.


For example, American companies like Apple Inc. (AAPL) take advantages of supply chain efficiencies in the Mainland to keep costs low and margins high. Foxconn (the main company which manufactures Apple products) has multiple suppliers and manufactures of components that are at nearby locations, and it would be economically unfeasible to take the components to U.S. to assemble the final product. (For more, see: China’s Economic Indicators.)

Lesser Compliance

Manufacturers in the West are expected to comply with certain basic guidelines with regards to child labor, involuntary labor, health and safety norms, wage and hour laws, and protection of the environment. Chinese factories are known for not following most of these laws and guidelines, even in a permissive regulatory environment. Chinese factories employ child labor, have long shift hours and the workers are not provided with compensation insurance. Some factories even have policies where the workers are paid once a year, a strategy to keep them from quitting before the year is out. Environmental protection laws are routinely ignored, thus Chinese factories cut down on waste management costs. According to a World Bank report in 2013, sixteen of the world’s top twenty most polluted cities are in China. (For more, see: Boom or Bust? The End of China's One-Child Policy.)

Taxes and Duties

The export tax rebate policy was initiated in 1985 by China as a way to boost the competitiveness of its exports by abolishing double taxation on exported goods. Exported goods are subject to zero percent value added tax (VAT), meaning they enjoy a VAT exemption or rebate policy. On the other hand, the U.S. doesn’t have a VAT and import taxes are only applicable to certain goods like tobacco and alcohol. Consumer products from China are exempted from any import taxes. Lower tax rates help to keep the cost of production low. (For more, see: Top 6 Factors That Drive Investment In China.)

Currency

China has been accused of artificially depressing the value of the yuan to provide an edge for its exports against similar goods produced by a U.S. competitor. The yuan was estimated to be undervalued by 30% against the dollar in late 2005. The Chinese yuan has, however, been steadily increasing in value against the dollar over the past few years. According to the Bank for International Settlements, the real appreciation of the yuan between the end of 2011 and March 2014 was about 7%. China keeps a check on the appreciation of yuan by buying dollars and selling yuan, a practice that has swelled Chinese foreign exchange reserves to approximately $4 trillion. (See: Why China's Currency Tangos With The USD.)

The Bottom Line

In the recent times, pundits have wondered if China will lose its spot as "the world's factory” as emerging economies offering cheap labor and rising wages dull China's competitive edge. The availability of cheap labor is just one of the many factors that have made China a manufacturing hub, however, and it will take more than cutthroat desire for emerging economies to set up a business ecosystem that can compete with China's. For some time to come, China will be "the world factory” with its low production costs, huge labor pool, vast talent base and business ecosystem.

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The so called post China 16 wont emerge in the next decade. China is the world's factory not just because of its labor wages. It is also due to its educated population, world class infrastructures, know-hows, political stability, ease of doing business, ect. If the only factor was population and labor wages, then India should have replaced China 2 decades ago.

Simply put, companies like Apple or Toyota won't move their production plants to somewhere like Africa with illiteracy and starvation rate in the 50's, where there are on going civil war, and little basic infrastructure to produce anything.

Same thing with moving to places like Laos and Cambodia, essentially landlocked countires with no infrastructure to speak of.

China will be the world's factory for a long time to come.
 
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