Key Sequence

Notation

New Concepts

• Strong and Weak Duality
• Geometric Interperattion of the Dual
  • Complementary Slackness
  • KKT Conditions
• preturbation analysis
• dual transformation
• theorem of alternatives

Important Results / Claims

Questions

Interesting Factoids

Key Sequence

Notation

New Concepts

• Duality for Feasible Problems
• Approximation and Fitting
  • Huber Penalty Function

Important Results / Claims

• Farkas’ Lemma

Questions

Interesting Factoids

Key Sequence

Notation

New Concepts

• Lagrangian
• Lagrange Dual Problem
  • Strong and Weak Duality
  • constraint qualifications

Important Results / Claims

• Connection between duals and conjugates

Questions

Interesting Factoids

Revenue vs Market Cap

• large Chinese coporations are not listed on stocks or only a bit of their shares
• thus revenue / market cap is very different measures

Role of State-Owned Enterprises

1. almost 40 years after market reforms, China’s state-owned enterprises still have a large role
2. state owned enterprises are called on to support economic growth for China/deliver aid/satisfy industrial policies

Problems with SOEs

• lots of debt
• pushed down future productive growth and pushes up public debt
• current policies not tackling SOE performance

Private firms is contributing to about half of economic exports

China has two main forms of foreign involvement:

1. belt and road initiatives: construction projects in foreign countries
2. Investments in foreign countries (buying and building)

Expansions

Two key factors—

1. good forex reserves to finance this expansion
2. coordinated and financed by Chinese government with national priorities

Pros and Cons

Pros

• large foreign exchange ourselves

Cons

• largely based on debt financing internally since companies are not allowing to invest in foreign areas

Market Limitations

To invest overseas, a company needs permission from the government to move money out of the country: this means that China’s currency is non-convertible; thus it limits outwards expands, and domestic companies thus cannot move overseas.