China Through Rose Colored Glasses, Darkly

ChinaLawBlog has already been accused of being too "bullish" on China and I admit I am generally optimistic about China and its potential. But, of course, I do recognize China has its major risks, some of which are nicely laid out in this new article in Foreign Policy . (Hat tip to China Digital Times) It was written by Minxin Pei of the China Program at the Carnegie Endowment for International Peace and it is generating quite a bit of buzz in the blogosphere, as you can see in posts here, here, here and here. Oh and here (ok you get the idea). You can find additional work by Dr. Pei here.

We certainly appreciate the issues Dr. Pei raises, but based on what I see first hand and hear from our clients and you, our readers, we choose to remain optimistic. For those interested in these sorts of big idea think pieces on China, we recommend you check out James Na, Dan Drezner and Tom Barnett, whose views range all over the China optimist-pessimist map. Comments are open, we would love to hear your thoughts. Are you bullish on China?

UPDATE: Tyler Cowen at Marginal Revolution has a good discussion going on this article. He also mentions an upcoming trip to Shanghai. I look forward to hearing about his trip.

Recommended Books

James McGregor: One Billion Customers : Lessons from the Front Lines of Doing Business in China (Wall Street Journal Book)
Dan's Review: I would find myself nodding along to virtually all of the stories and to nearly all of the end of the chapter suggestions on how to conduct business in China. It was not until I finished the book, however, and really started thinking about it that I realized that well over 90% of my Chinese business encounters are very different from those described in the book. This caused me to realize that this is not really a book about doing business in China so much as it is a book about doing big business in China. Among other things, the book eloquently details the difficulties of establishing a foreign wireless network, a foreign media empire, and a large scale foreign investment bank, but it never delves into the nitty gritty of the small and medium sized manufacturing and service businesses that operate so successfully in China. So while this is the best book I have read for understanding the Chinese business persona, the China picture it paints does not really apply to most foreign businesses coming in to China. Indeed, early on, the book reveals that nine out of the ten most successful brand names in China are foreign. If everything were indeed so bad there, this obviously could not be true. (*****)
John Pomfret: Chinese Lessons: Five Classmates and the Story of the New China
Dan's Review: Great book. It beautifully (and usually depressingly) describes how China's past so heavily influences its present. I felt I knew everyone in the book because they were composites of the real life Chinese with whom I deal in my work. It was a joy to read and it increased my understanding of China. (*****)
Peter Hessler: Oracle Bones: A Journey Between China's Past and Present
Dan's Review: Hessler is an excellent writer and story teller and I greatly enjoyed the book. But, unless you are a China neophyte, do not expect to glean much useful information from this book. This book is written to tell stories. It is not a how-to, it does not work as a how-to, nor is it intended as such. It is more travel story/literature about China than anything else. (****)
Ji-li Jiang: Red Scarf Girl : A Memoir of the Cultural Revolution
Dan's Review: For ages 10-15. Read this book when my daughter had it as an assignment for 8th grade history. An excellent introduction to the Cultural Revolution for children. (****)
Sun Tzu: The Art of War, Special Edition
We are not going to review this book beyond stating that this is one of the best editions.
International Corporate Procedures: Multiple Authors, including Steve Dickinson: International Corporate Procedures
Detailed and comprehensive analysis of corporate entities, corporate registration, and corporate taxation for 60+ countries. Not for non-lawyers. Our own Steve Dickinson wrote the chapter on China. For more information, click here

Comments

Pieter at Peaktalk (you linked to it) wrote:Minxin Pei’s observations by the way contain a kernel of hope for the pessimists: China is not nearly as strong or as threatening as some try to make it out to be.Perhaps. Or even more reason to fear -- as a rising power with tremendous internal tension often engages in external aggression (fed by co-opted hyper-nationalism) to redirect the tension away from the ruling elites.

Posted by: Guns & Butter/Korea Liberator | March 01, 2006 at 10:22 PM

External aggression that will surely lead to nuclear war with the United States. Nukes changed everything in 1945. There hasn't been a great power war since WW2.

Posted by: Patrick Tan | May 11, 2006 at 05:33 AM

Mr. Tan --

I do not understand your comment. To what external aggression are you referring?

Posted by: China Law Blog | May 11, 2006 at 07:25 AM

No matter where you are in the pessimism/optimism continuum, it is crucial to have accurate information to right size the response. A PRC that has no problems is alarming because it makes them seem inhuman.

Posted by: TM Lutas | July 09, 2006 at 07:00 AM

Mr. Lutas -

Who can disagree?

Posted by: China Law Blog | July 09, 2006 at 07:36 AM