A genius? I just love studying.

Chapter 242 Stochastic Analysis Will Ultimately Bridge the Gap Between Theory and Industry
Unfortunately, there were no surveillance cameras in the lab, just as there were no cameras in Zhou Zhen's own office. He didn't want anyone watching him while he was working, so he didn't require his students to do the same.

The good news is that there are surveillance cameras in the corridors, which can show who has entered and exited the lab in the past few days.

Strangely, apart from Wang Qiming and Chen Hui, even Lin Hao hasn't entered the lab in the past few days.

While checking the surveillance footage, Lin Hao couldn't help but blush for a while. The feeling of being caught slacking off in public was quite embarrassing.

"If it wasn't Professor Chen, I really can't think of anyone else."

After watching the surveillance footage, Zhou Zhen said to Wang Qiming.

It is often said that when all impossible answers are eliminated, the one that remains, no matter how absurd, can only be the correct answer.

But between the two answers—Chen Hui solving the problem that had plagued them for years in just a few minutes, and the mysterious force that placed this stack of draft paper on Lin Hao's desk—Zhou Zhen found it difficult to choose.

Because both of those answers were utterly absurd.

Fortunately, they could ask Chen Hui directly.

……

In October in Chengdu, the cicadas' chirping, still carrying the summer heat, seeped into the cracks of the conference room glass.

The air conditioning in the conference room of FAW-Volkswagen Purchasing Department in Chengdu was on full blast, but Wang Jianguo's palms were sweaty as he gripped the third test report—the edges of the report were frayed from his grip, and the red stamp of "total oxygen content 0.0062%" burned like a ball of fire in his chest.

Across from him, the Japanese representative, Matsumoto Ichiro, was slowly wiping his gold-rimmed glasses. His small eyes behind the lenses were squinted into slits. The Japanese teacup in front of him was still steaming, and a Japanese test report was pressed under the bottom of the celadon cup. The "JFE Steel" logo on the cover was so bright that it hurt one's eyes under the light.

“Mr. Matsumoto,” Wang Jianguo pushed the third test report across the dark wood conference table, “this was done by the Guojia Steel Materials Testing Center, which we commissioned. The total oxygen content exceeds the standard by 0.0012%, and the inclusion rating is Level II—your JFE standard is ≤0.005% total oxygen, with a rating of Level I.”

He tapped the report with his knuckles. "This is the third time. The first time they said it was due to vibration during transportation, the second time they said the temperature and humidity in the laboratory were not right, and the third time they even questioned the testing equipment."

Matsumoto finally took off his glasses and carefully wiped the lenses with a silk handkerchief, his movements so slow they seemed like a performance. "Wang-san,"

His Mandarin had a deliberate accent, "Testing clean steel isn't like buying cabbage; it requires specialized equipment for calibration." He suddenly pointed out the window, "The humidity in your Chengdu province is 30% higher than in Tokyo. Ordinary spectrometers in this environment..."

"Enough!" Old Chen from the technical department stood up abruptly, slamming the instruction manual for the oxygen and nitrogen analyzer on the table. "We're using the Shimadzu MOA-7000F from Japan, the same model as your JFE lab! We just had it remotely calibrated by the Tokyo lab last month, and the error is no more than 0.0001%!"

His face flushed red. "Tell me, is it our equipment that's faulty, or your steel?"

A deathly silence fell over the conference room. Matsumoto's lips curled into a cold smile as he pulled a document from his suit pocket and shoved it towards them. "Mr. Wang," he said, "do you know why cleanroom steel testing requires our Japanese equipment?"

His fingertip traced the patent number on the document. "The core algorithm of this MOA-7000F, as well as the calibration procedure for oxygen and nitrogen analysis, are all patented by JFE." He suddenly raised his voice, "You use our technology in every test, and now you're questioning the results?"

"Is there a problem with our steel, or do you not know how to use the patented technology?"

Wang Jianguo's temples throbbed. He recalled the bill the technical department received last week: the technical usage fee for a single test was as high as 8 Chinese yuan. In a year, the testing fees alone would be enough to buy half a truckload of steel.

“Mr. Matsumoto,” he grabbed a copy of the contract from the table, “Article 7.3 of the contract clearly states, ‘A quality dispute shall be settled by a third-party test mutually agreed upon by both parties.’ We contacted the China Iron and Steel Research Institute, and they also use Shimadzu equipment. Their results were exactly the same as ours!”

"A Chinese institution?" Matsumoto scoffed, leaning back in his leather chair. "Mr. Wang, your Chinese testing standards are ten years behind JIS."

He opened his notebook, a disdainful sneer on his face. "Last year, 800 tons of the cold-rolled steel you supplied to Toyota were returned because of excessive inclusions—oh, by the way, that batch of steel was also inspected and approved by you yourself."

"That's because Toyota's standards are different from ours!" Purchasing manager Li Fang suddenly interjected, her voice almost choked with tears. "We're using this for the gear shift mechanism in the Sagitar, and the tolerance requirement is 0.02 millimeters. Your steel can't even meet 0.03!"

She picked up a physical sample from the table. "Look at this folding defect. You can count three layers under a microscope—can this be installed in a car?"

Matsumoto's gaze swept over the sample, then quickly looked away. He picked up his teacup, took a sip, and said, "Mr. Wang, business cooperation requires sincerity."

His tone suddenly softened, “Returning or exchanging goods would result in too much loss. How about this: you cover 30% of the testing fee, and we will compensate you for 5% of the purchase price.”

"5%?" Wang Jianguo slammed his hand on the table, splashing tea from the teacup and staining the contract. "You've delayed our production schedule by three weeks, and we've lost 200 million just in mold idle fees!"

He pointed to the countdown timer on the wall, "The new Sagitar model is going to be launched next month, there's no time to change suppliers now!"

“That’s your own problem.” Matsumoto’s tone hardened again. “JFE has always been strict with delivery times. It’s your own fault for not confirming the quality in advance.”

He stood up and straightened his cufflinks. "Besides, even if we return or exchange the goods, you'll have to pay for the shipping and customs clearance fees—international shipping isn't like domestic express delivery."

"Enough!" Wang Jianguo grabbed the Japanese test report. "Look at it yourselves!" He threw the report in front of Matsumoto. "The total oxygen content tested internally at JFE is 0.0048%, which is only 0.0003% different from our first test result of 0.0051%. How come it became 0.0062% in our lab?"

His voice trembled with excitement, "Is it because your manufacturing standards are different from the ones you give us?"

"You should ask yourselves that question!"

Matsumoto Ichiro said confidently, "You've wasted so much of my time, and I'm already being lenient by not asking you for compensation. If this is all you have to offer as so-called 'evidence,' then I'm afraid I won't continue this conversation."

After saying that, he stood up and walked out of the meeting room.

Purchasing manager Li Fang stared intently at Matsumoto Ichiro, her eyes seemingly making a difficult decision. "If this is your attitude, perhaps we should consider finding another partner!"

“In that case, your future procurement prices will increase by 5% from the current level.” Matsumoto Ichiro glanced back at Li Fang, chuckled, and left the conference room without looking back.

"Too deceiving!"

Wang Jianguo slammed his hand on the conference table, his teeth almost grinding to powder.

“Back then, Sumitomo Metal Industries of Japan supplied 600 tons of low-alloy steel to the Three Gorges Project. If it had not been found to be substandard, its use could have caused damage to the key structure of the Three Gorges Dam.”

"Those Japanese devils, they're always up to no good!" Old Chen from the technical department said angrily.

"Our technical response time is 50% longer than that of European and American customers. We have to pay an additional 30% handling fee for replacing key components. They prohibit our companies from using their patented technologies outside of the contract, and even if we make process improvements, we have to pay licensing fees."

"This is nothing. Back then, when we purchased a steel production line from Japan, they even included the toilets in the blueprints. It cost $20."

Wang Jianguo said with a sneer, "These Japanese devils, don't be fooled by their smiling faces, they use all sorts of despicable tricks behind the scenes."

Several people in the conference room poured out their grievances. In recent years, due to its backward technology, China has suffered setbacks in foreign trade, which can be described as a humiliating history.

Fortunately, China has gradually risen in recent years, and this situation has greatly improved. However, the impression that outsiders have of China seems to be stuck in the past.

Of course, continued efforts are needed to completely change this situation.

"But what can we do? Baosteel itself is not up to par, and the steel it produces does not meet the standards, so we can only buy it from Japan."

Li Fang from the purchasing department gave a similarly helpless, bitter smile. "So what do we do now?"

The old man from the technical department looked solemn. As someone who worked in technology, he knew that Baosteel's technology was actually quite good. It wasn't that their materials didn't meet the standards, but rather that their materials couldn't pass the tests of the Japanese testing agency. Everyone knew the trickery involved.

He had heard a few days ago that a batch of steel from Baosteel had been detained by Japanese customs because it failed to pass the tests of a Japanese testing agency, and it still hadn't been cleared. The various fees involved had already reached an astronomical figure.

Knowing this doesn't mean they can use Baosteel's steel. Otherwise, if someone exposed that they used steel that didn't meet the testing standards, you can imagine what public opinion would be like.

People here are not experts in this industry. They don't know the specific parameters, don't want to know, and shouldn't be allowed to know. So even if Baosteel's steel actually meets the standards, it cannot eliminate their panic.

"Talk to the German side."

Wang Jianguo snorted coldly, "So what if the new product is delayed? At the same price, why shouldn't we use German products instead of buying from the Japanese?"

Germany and Japan have similar steel technology. The reason they choose to import steel from Japan instead of Germany is because German steel is more expensive. But now is not the time to consider whether it is expensive or not.

Li Fang nodded. This was the only option left. "Our purchasing department has already been in contact with them for the past few days."

"I really hope that one day we can establish our own testing system!"

Old Chen sighed deeply, having come to a profound understanding that backwardness invites aggression.

"It's not that easy. To obtain internationally recognized qualifications, you have to be technologically ahead of them."

Wang Jianguo shook his head, not wanting to talk about such unrealistic things.

China has indeed become powerful, but they must also clearly recognize that China is still in the catching-up stage.

……

After Chen Hui finished dealing with Chloe's matter, Professor Zhou Zhen from the School of Chemistry appeared at the hospital entrance.

Not only Professor Zhou, but also Wang Qiming and a mathematics professor who looked somewhat familiar to Chen Hui were also present.

"Professor Chen, is your student alright?"

Professor Zhou greeted him warmly.

"It's just a superficial wound, nothing serious."

"I made a suggestion to the school a few days ago to ban vehicles from outside the school from entering the campus. Professor Chen, would you be interested in joining us?"

Chen Hui was speechless; he had thought the other party was coming to discuss academic matters.

Wu Wenyue, however, was too lazy to deal with these matters. He took the draft paper and came to Chen Hui, asking excitedly, "Professor Chen, did you write this formula?"

Chen Hui nodded.

The draft paper in Wu Wenyue's hand looked familiar to him; it was the very paper he had casually scribbled in the chemistry lab a few days ago.

"It's really you!"

Zhou Zhen was overjoyed. Having watched the surveillance footage, he knew that Chen Hui had been in the lab for less than ten minutes from the moment he entered until he came out. Yet, in those ten minutes, this guy had solved the problem that had been troubling them for years.

Wu Wenyue also perked up, looking intently at Chen Hui, and pointed to the formula on the draft paper, saying, "The proof of the absolute continuity of Lemma 2.4, there are 37 steps here, I spent three hours filling in the gaps but it's still missing one link."

"You are stuck on the variational inequality of Skorokhod integrals."

Chen Hui looked around for some paper and pen, but found that he was in a hospital, not his familiar office.

Wang Qiming also interrupted Chen Hui and his companion, who were preparing to discuss things at the hospital entrance, saying, "Let's find a meeting room."

Fortunately, the two had only just begun their discussion; otherwise, it would have been difficult to interrupt them when inspiration struck.

δu=∫0TutδWt∫0TE[DtutFt]dt
In the conference room, Chen Hui wrote down the mathematical expression for the traditional Skorokhod integral.

Wu Wenyue interjected hastily: "But the dtut of the non-adaptive process ut is undefined."

Chen Hui did not answer, but instead wrote another formula below the one above: δu=n→∞limk=1∑nξkΔWtk∫0TDt+utdt
"I introduced the right Malliavin derivative!"

"That's it, that's it!"

Wu Wenyue was overjoyed. Chen Hui's imaginative proof opened a new door for him. He had never thought that mathematics could be played with in this way before.

Zhou Zhen and Lin Hao stood there dumbfounded, completely unable to understand what the two were saying.

Wang Qiming was different. Having already given up on the path of mathematics, he simply ignored it and calmly watched the two people having a heated discussion. Thinking of his own journey north, a sense of pride welled up within him.

I'm so wise!

Wang Qiming felt that the red scarf on his chest had become even brighter.

"You're trying to use the Clark-Ocone formula, but you've forgotten its applicable conditions..."

When Zhou Zhenlin and Hao came to their senses, they realized that they could no longer understand what Chen Hui and the others were discussing. It felt like they had been daydreaming in class and were now listening to the teacher's lecture again.

Wu Wenyue and Chen Hui exchanged questions and answers, and several hours passed in the blink of an eye.

Finally, when all the questions were answered, Wu Wenyue's knuckles turned white as he gripped the draft. "So... the unadaptive process of turbulent pre-excitation..."

Chen Hui nodded, took out his phone, and played a slow-motion video of argon bubbles bursting inside an RH refining furnace at a steel plant.

“Look at this microsecond-level vortex pre-formation.” He paused at 23.4ms, superimposing his model’s prediction curve. “My framework has captured information about the future!”

"The future is terrifying!"

Wu Wenyue's eyes were filled with relief and excitement.

Chen Hui shook his head, "I'm just standing on the shoulders of giants. As you said in your paper in the fourth issue of Applied Probability, stochastic analysis will eventually bridge the gap between theory and industry!"

(End of this chapter)