Tag Archives: china

Stratfor: China Is Building Its Future on Credit

Summary: China, like the US, has surprised the bears by the resilience of its economy. Here Strafor examines one source of its economic strength, one that might haunt its future — massive and imprudent accumulation of debt.

Stratfor

China Is Building Its Future on Credit
Stratfor, 20 July 2016

Summary

As China tries to overcome slowdowns in its industrial and trade sectors, the country’s banks have continued to increase the pace of lending, issuing 1.38 trillion yuan ($205.8 billion) worth of loans in June. The figure confirms some economists’ expectations that lending will keep rising as China’s central government attempts to revive economic growth and boost property markets that showed signs of another slump in May. It also indicates that despite Beijing’s repeated pledges to reduce the economy’s reliance on credit and state-led investment, the easy flow of financing from state-owned banks remains the country’s primary bulwark against widespread debt crises among corporations and local governments.

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China takes the lead in supercomputing while America sleeps

Summary: The Apollo program demonstrated America’s superpower status in the 1960’s. Today’s contests are more diffuse, such as the race to build the most and largest supercomputers. China has moved into the lead in this, another milestone in its quest to again become the Middle Kingdom. Helping in their quest is America’s unwillingness to invest in itself, preferring to fund the 1%, a massive military, and foreign wars.

Sunway TaihuLight Supercomputer

China’s New Supercomputer Puts the US Even Further Behind

By Brian Barrett, Wired, 21 June 2016 — Excerpt.

“This week, China’s Sunway TaihuLight officially became the fastest supercomputer in the world. The previous champ? Also from China. What used to be an arms race for supercomputing primacy among technological nations has turned into a blowout.

“The Sunway TaihuLight is indeed a monster: theoretical peak performance of 125 petaflops, 10,649,600 cores, and 1.31 petabytes of primary memory. That’s not just “big.” Former Indiana Pacers center Rik Smits is big. This is, like, mountain big. Jupiter big.

“TaihuLight’s abilities are matched only by the ambition that drove its creation. Fifteen years ago, China claimed zero of the top 500 supercomputers in the world. Today, it not only has more than everyone else — including the US — but its best machine boasts speeds five times faster than the best the US can muster.

“…Its 10.6 million cores are more than three times the previous leader, China’s Tianhe-2, and nearly 20 times the fastest U.S. supercomputer, Titan, at Oak Ridge National Laboratory. ‘It’s running very high rates of execution speed, very good efficiency, and very good power efficiency,’ says University of Tennessee computer scientist Jack Dongarra. ‘It’s really quite impressive.’  {Its peak power consumption under load (the HPL benchmark) is 15.37 MW, or 6 Gflops/Watt. It would have taken the #2 spot on the November 2015 Green500 list.}

“…TaihuLight is faster than anything scheduled to come online in the US until 2018, when three Department of Energy sites will each receive a machine expected to range from 150 to 200 petaflops. That’s ahead of where China is now — but two years is half an eternity in computer-time.

“…The other significant TaihuLight achievement stings US interests even more, because it’s political. China’s last champ, Tianhe-2, had Intel inside. But in February of 2015, the Department of Commerce, citing national security concerns — supercomputers excel at crunching metadata for the NSA and their foreign equivalents — banned the sale of Intel Xeon processor to Chinese supercomputer labs.

“Rather than slow the rate of Chinese supercomputer technology, the move appears to have had quite the opposite effect. ‘I believe the Chinese government put more research funding into the projects to develop and put in place indigenous processors,’ Dongarra says. ‘The result of that, in some sense, is this machine today.'”

—————————- End excerpt. —————————-

The operating system is a Linux-based Chinese system called Sunway Raise. Bloomberg gives more detail about this remarkable achievement by China.

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Good news from China about climate change!

Summary: The headlines report almost nothing but bad news about climate change as journalists exaggerate much of the bad news and mute much of the good news. Here is an example of wonderful news — from China, the top source of global pollution growth — about another step in the world’s shift away from coal. It deserves attention.

World in A Forest

Those horrific forecasts of our future climate describe different effects, but have a common source: the RCP8.5 scenario, worst of the four used in the IPCC’s AR5 report. It describes a future in which many things go wrong, especially rapid population growth and slow tech progress, so that coal become the major fuel of the late 21st century — as it was of the late 19th C.

Much of the world has been shifting away from coal at an accelerating rate, so that coal prices are collapsing and coal companies are going bankrupt. Even in China, long the top coal growth story. There are indications that coal use has begun to decline in China. They’re rapidly closing older plants, major sources of the toxic clouds over their cities (Beijing has shut all of its coal-fired plants) — and the mines that feed them (1,000 in 2016, 4300 over 3 years). Now comes even better news about policy changes China’s government has made to further this wonderful trend.

Excerpt from an article at the World Resources Institute
by and

China has emerged as a leader in renewable energy. Investment soared from $39 billion to $111 billion in just 5 years, while electric capacity for solar power grew 168-fold and wind power quadrupled.  Actual renewable energy utilization also grew. The total share of non-fossil fuels in primary energy consumption increased from 8.3% in 2010 to 12% in 2015, beating the country’s target of 11.4% and putting China well on track to meet its Copenhagen pledge to reach 15% by 2020 and Paris commitment to reach 20% by 2030.

In the last two months, China’s government has thrown three punches to tackle the problem.

Punch 1: An emergency ban on new coal power construction

The central government has ordered 13 provinces to suspend coal-fired power plant approvals in the current pipeline, and another 15 provinces to delay new construction of projects that have already been approved, according to media reports.

The government has also set up an on-going early warning mechanism to anticipate and discourage local decisions that may exacerbate coal power plant overcapacity in the future. Projecting to 2019, the government has issued a “red alert” for 28 provinces (in Chinese), asking local authorities to suspend approval and companies to reconsider investment.

By curbing the development of new coal power plants, the dominant source of fossil fuel electricity in China, the government aims to prevent destructive competition with renewables.

Punch 2: Rules to guarantee sale of renewable energy generation on the grid …

Punch 3: Consumption and generation targets for renewables …

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