Hua-Chen new theory of economic optimization

Between 1957 and 1985, the Chinese mathematician Loo-Keng Hua pioneered economic optimization theory through three key contributions: establishing economic stability's fundamental theorem, proving the uniqueness of equilibrium solutions in economic systems, and developing a consumption-integrated model 50 days before his death. Since 1988, Mu-Fa Chen has been working on Hua's theory. He introduced stochastics, namely Markov chains, to economic optimization theory. He updated and developed Hua's model, and came up with a new model (Chen's model), which has become the starting point of a new economic optimization theory. Chen's theory can be applied to economic stability testing, bankruptcy prediction, product ranking and classification, economic prediction and adjustment, and economic structure optimization. Chen's theory can also provide efficient algorithms that are programmable and intelligent. Stochastics is the cornerstone of Chen's theory. There is no overlap between Chen's theory, and the existing mathematical economy theory and the economics developments that were awarded Nobel Prizes in Economics between 1969 and 2024. Chen's theory distinguishes itself from existing theories for being quantitative, calculable, predictable, optimizable, programmable, and intelligenced. This survey provides a theoretical overview of the newly published monograph [7]. Specifically, the invariant of the economic structure matrix, also known as the Chen's invariant, is first published in this survey.