News on China's scientific and technological development.

gadgetcool5

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I understand it as the following. Real GDP is growing at a 5% annual clip, after adjusting for inflation. But since producer price inflation has dropped and even gone into deflation, and China's taxes are based on the VAT which is sensitive to producer prices, then tax revenues have dropped as a percentage of the overall economy.

In my mind the government has two options. One is to raise taxes in order to have more money to stimulate the economy. However, this would be robbing Peter to pay Paul. The other is to reflate by monetizing the debt -- accepting a depreciation of the yuan, a higher fiscal deficit and higher inflation in order to boost aggregate demand. This is the way to go. China's risk fron U.S. protectionism is insufficient aggregate demand, leading to idle factories and layoffs. Yuan depreciation would mitigate the impact of tariffs abroad and give the government more breathing room to spend at home, keeping people employed making stuff for use at home.
 

tonyget

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From Partner to Rival: Understanding China’s Technological Rise through Patent Data​

April 03, 2025
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In today’s global economy, a country’s technological capabilities increasingly determine its economic power and influence. One way to track these capabilities is through international patent filings—the legal protections countries seek for their citizens’ innovations in foreign markets. These patents can signal how nations position themselves in the global innovation landscape.
China’s evolution over the past decade provides an interesting case study. Once known primarily as a producer of lower-cost goods, China has transformed into a competitor in more-advanced high-tech industries traditionally dominated by advanced economies. We use the INPACT-S international patenting dataset developed by Jesse LaBelle and other researchers to document these trends.
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What Patent Filings Tell Us about Global Strategy​

When inventors or companies file patents abroad—what we call “patent exports”—they are making strategic decisions that reveal much about their global ambitions. According to recent research by Immaculada Martínez-Zarzoso and Ana Maria Santacreu, companies typically pursue international patents to secure exclusive rights to sell their innovations in valuable foreign markets.
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They also use patents to prevent foreign competitors from copying their technologies. Additionally, patents help demonstrate the quality of their innovations by meeting the stringent standards of prestigious patent offices, particularly in advanced economies like the United States.
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When a country receives many patent applications from foreigners—referred to as “patent imports”—it signals several factors. The country is seen as a valuable market worth protecting, has domestic companies capable of replicating advanced technologies, and maintains a reliable intellectual property system. These patent flows offer insights into how countries view one another’s technological capabilities and market potential.

How Similar Are China’s Patents to Those of Advanced Economies?​

To understand China’s technological positioning, we can examine the Export Similarity Index (ESI) for patents, which is based on a method formally introduced by J. Michael Finger and Mordechai E. Kreinin in 1979. This index measures the similarity in how countries distribute their international patent filings across different industrial sectors, revealing overlaps in the international protection of their innovations.
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As shown in the first figure, Japan consistently maintains the highest patent similarity with China (hovering between 78% and 83%). The U.S. follows at 80% in 2021, having experienced steady increases since 2014. The ESI for European countries has increased, as the index for the euro area (European Union member states who use the euro) rose from 66% in 2014 to 75% in 2021. Germany, in particular, demonstrates a pronounced rise in technological alignment with China, growing from 67% to 78% over the same period.
Export Similarity Index between China and Selected Advanced Economies
A line chart shows the change in index between China and five advanced economies: euro area, Germany, Japan, the U.K. and the U.S. Description is in text above.

SOURCE: LaBelle, Martínez-Zarzoso, Santacreu and Yotov (2023) and authors’ calculations.
The second figure breaks down the change in similarity. It shows that the growing similarity is mainly driven by the machinery and equipment sector (blue bars), with a smaller contribution from the chemicals industry.
Sectoral Breakdown of the Change in the Export Similarity Index, 2013-2021
A column chart shows the index’s change broken down by key industrial sector (chemicals; food and tobacco; machinery and equipment; motor vehicle and transport equipment; other; rubber, plastics and metals; and wood and paper) for the euro area, Germany, Japan, the U.K. and the U.S. Description in surrounding text.

SOURCES: LaBelle, Martínez-Zarzoso, Santacreu and Yotov (2023) and authors’ calculations.
NOTE: “Other” includes the following sectors: construction; electricity, gas, steam and hot water supply; manufacture of furniture and manufacturing not elsewhere classified; mining; oil; publishing, printing and reproduction of recorded media; recycling; textile, and water collection, purification and distribution.
These patterns suggest that China’s technological specialization has increasingly converged with advanced economies, especially in sectors like machinery and equipment, indicating China’s strategic shift toward high-value innovation and its growing role as a direct competitor in technology-intensive industries traditionally dominated by developed nations.
 
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tonyget

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Matching Innovation Supply with Demand​

The Partner Similarity Index (PSI) offers another perspective on technological positioning. This index measures how well one country’s outbound patent sectors align with the sectors in which another country receives foreign patent applications.
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The next two figures illustrate China’s increasing strategic alignment with some advanced economies, as reflected by the PSI. China has increasingly sought patent protection abroad in sectors in which advanced economies receive numerous foreign patent applications. Among these, the U.S. maintains the highest and most stable alignment with China’s strategic patenting choices, consistently around 90%. The U.K. also exhibits high alignment (ranging from 85% to 90%), although its pattern is more volatile. Germany, however, stands out for its notable increase, showing a clear upward trend from 2013 through 2021. This pattern indicates that Germany has become increasingly central to China’s international patent strategy, which might indicate China’s intent to penetrate sectors highly valued and actively protected in European markets.
Partner Similarity Index between China’s Patent Exports and Patent Imports of Selected Advanced Economies
A line chart shows the change in index between China and five advanced economies: euro area, Germany, Japan, the U.K. and the U.S. Description is in text above.

SOURCE: LaBelle, Martínez-Zarzoso, Santacreu and Yotov (2023) and authors’ calculations.
Sectoral Breakdown of the Change in the Partner Similarity Index for China’s Patent Exports, 2013-21
A column chart shows the index’s change broken down by key industrial sector (chemicals; food and tobacco; machinery and equipment; motor vehicle and transport equipment; other; rubber, plastics and metals; and wood and paper) for the euro area, Germany, Japan, the U.K. and the U.S.

SOURCE LaBelle, Martínez-Zarzoso, Santacreu and Yotov (2023) and authors’ calculations.
NOTE: “Other” includes the following sectors: construction; electricity, gas, steam and hot water supply; manufacture of furniture and manufacturing not elsewhere classified; mining; oil; publishing, printing and reproduction of recorded media; recycling; textile, and water collection, purification and distribution.
Conversely, the next two figures show that advanced economies maintain relatively stable patenting strategies toward China, with Germany showing the strongest increase in alignment after 2018. This selective approach to patent protection in China suggests caution about protecting leading-edge technologies—a pattern that aligns with Federal Reserve research highlighting China’s reduced imports of specialized European products.
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Partner Similarity Index between Patent Exports of Selected Advanced Economies and China’s Patent Imports
A line chart shows the change in index between China and five advanced economies: euro area, Germany, Japan, the U.K. and the U.S. Description is in text above.

SOURCES: LaBelle, Martínez-Zarzoso, Santacreu and Yotov (2023) and authors’ calculations.
Sectoral Breakdown of the Change in the Partner Similarity Index for China’s Patent Imports, 2013-2021
A column chart shows the index’s change broken down by key industrial sector (chemicals; food and tobacco; machinery and equipment; motor vehicle and transport equipment; other; rubber, plastics and metals; and wood and paper) for the euro area, Germany, Japan, the U.K. and the U.S.

SOURCES: LaBelle, Martínez-Zarzoso, Santacreu and Yotov (2023) and authors’ calculations.
NOTE: “Other” includes the following sectors: construction; electricity, gas, steam and hot water supply; manufacture of furniture and manufacturing not elsewhere classified; mining; oil; publishing, printing and reproduction of recorded media; recycling; textile, and water collection, purification and distribution.

Patents as signal of Technological Credibility​

Beyond legal protection, patents serve as signals of innovation quality and reliability. In their 2023 paper, Gong and his co-authors found that obtaining patents from advanced economies like the U.S. significantly improves Chinese firms’ credibility in global markets, helping overcome information barriers that might otherwise limit their international expansion.
This quality signaling function is particularly important for firms selling sophisticated products to demanding international customers. As Martínez-Zarzoso and Santacreu explained in their 2024 article, cross-border patenting serves as a strategic signal of innovation quality that benefits companies competing in quality-intensive, differentiated product markets.

The Machinery Sector: China’s Strategic Focus​

The machinery sector stands out in both patent and trade data. As shown in all three figures, machinery and equipment technologies drive the increasing similarity between China and advanced economies. This pattern may indicate China’s strategic approach of first developing technological capabilities in targeted machinery sectors, then protecting these innovations through international patent filings, and finally scaling up manufacturing and expanding exports in these same sectors. As a result, China has been positioning in high-value industries where advanced economies have traditionally dominated.
Federal Reserve research confirms this pattern, noting
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, particularly in the automotive sector.

From Partnership to Rivalry​

China’s transformation from a cooperative economic partner to a technological rival in advanced machinery sectors has significant implications. For advanced economies, international patent activities can serve as early warning signals of competitive shifts, prompting reconsideration of intellectual property policies and innovation protection. Indeed, patent data offers a uniquely revealing window into countries’ technological strategies before these strategies fully manifest in trade statistics or market shares.
 

supercat

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AI model to predict the recurrence of colorectal cancer after surgery:
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A google engineer just went back to China.

Ex-Google engineer joins Shanghai robotics start-up to take lead on advanced AI research​

Newly appointed AgiBot chief scientist Luo Jianlan, who previously worked at Google, spearheads the advanced AI research effort

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tokenanalyst

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Research realizes millisecond-level integrated quantum memory​

The team led by Guo Guangcan, an academician of the Chinese Academy of Sciences and a professor at the University of Science and Technology of China, has made progress in the field of integrated quantum storage. Based on the team's original noise-free photon echo (NLPE) scheme, the research group led by Li Chuanfeng and Zhou Zongquan has increased the storage time of integrated quantum memory from 10 microseconds to milliseconds, surpassing the efficiency of traditional optical fiber delay lines.

Optical quantum memory is a core device for overcoming channel loss and building large-scale quantum networks. Large-scale application of optical quantum memory requires the integration of devices to achieve the goals of small size and low power consumption. Since 2011, the international community has used a variety of processes to prepare integrable quantum memories in rare earth-doped crystals. However, since noise in integrated devices is difficult to filter out and storage efficiency is limited, existing devices can only achieve storage in atomic excited states, with a storage time of only 10 microseconds. The storage efficiency is lower than the transmission efficiency of optical fiber delay lines, which fundamentally limits its practical application in long-distance quantum communications.

To solve this problem, the research group of Li Chuanfeng and Zhou Zongqun used femtosecond laser micromachining technology to prepare a circularly symmetric depressed cladding optical waveguide in europium-doped yttrium silicate crystals, realizing noise filtering based on polarization freedom. At the same time, combined with the team's original NLPE quantum storage solution, they improved the storage efficiency and realized the integrated quantum storage of spin waves in the atomic ground state.

Recently, the team integrated a coplanar electric waveguide on the surface of the crystal, and achieved dynamic decoupling control of the nuclear spin transition of europium ions in the optical waveguide by applying a radio frequency magnetic field, thereby extending the quantum storage lifetime of the spin wave to the millisecond level. When the storage time of the optical quantum bit reaches 1.021 milliseconds, its storage efficiency reaches 12.0±0.5%. This efficiency far exceeds the transmission efficiency of the optical fiber delay line with the corresponding delay, proving that the integrated quantum storage device can no longer be replaced by the optical fiber delay line in terms of function.

This work has increased the lifetime of integrable quantum memory from 10 microseconds to milliseconds, achieving for the first time a breakthrough in storage efficiency that exceeds that of optical fiber delay lines, laying the foundation for the practical application of integrable quantum storage in long-range quantum networks. At the same time, this achievement demonstrates the potential of the NLPE solution in solving the signal-to-noise ratio problem of long-life quantum storage.

On March 26, the relevant research results were published in Science Advances and received high praise from reviewers. The research work was supported by the Science and Technology Innovation-2030 Major Project, the National Natural Science Foundation, the Chinese Academy of Sciences and related projects of Anhui Province.

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