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Dealing With China

2018/03/31 09:00:18瀏覽785｜回應0｜推薦1

Writer:

Paulson was born in Florida, the son of a wholesale jeweler. He was raised as a Christian Scientist on a farm in Illinois. He has Norwegian, German, and English Canadian ancestry.

Paulson was a champion wrestler and stand-out football player.Paulson received his Master of Business Administration degree from Harvard Business School in 1970. He met his wife during his senior year. The couple has two adult children.

Paulson was Staff Assistant to the Assistant Secretary of Defense at The Pentagon from 1970 to 1972. He then worked for the administration of U.S. President Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973.

He joined Goldman Sachs in 1974. He became a partner in 1982. From 1983 until 1988, Paulson led the Investment Banking group for the Midwest Region, and became managing partner of the Chicago office in 1988. From 1990 to 1994, he was co-head of Investment Banking, then Chief Operating Officer from December 1994 to 1998, succeeding Jon Corzine as chief executive.

Paulson has personally built close relations with China during his career. Paulson has intimate relations with the Chinese elite.

Paulson was nominated in 2006, by U.S. President George W. Bush to succeed John Snow as the Treasury Secretary. In 2006, he was confirmed by the United States Senate to serve in the position of Treasury Department.

Paulson identified the wide gap between the richest and poorest Americans as an issue on his list of the country's four major long-term economic issues to be addressed.

Paulson was known to have persuaded President George W. Bush to allow him to initiate U.S.-China Strategic Economic Dialogue. In 2007, Paulson warned an audience at the Shanghai Futures Exchange that China needed to free up capital markets to avoid losing potential economic growth, saying: "An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention." In 2008, in light of the economic crisis experienced by the U.S. in the interim, Chinese leaders evidenced hesitation to follow Paulson's advice.(R.4)

Story:

As a businessman, not a scholar or theorist. Paulson brings a firsthand knowledge of China and its corporate and political leaders. He has gleaned this over more than 100 visits to the country and nearly 25 years of dealing with Chinese officials on commercial matters while at Goldman Sachs, on affairs of state and macroeconomic policy while U.S. secretary of the Treasury, and, nowadays, as head of the Paulson Institute, which promotes sustainable economic growth and a clear environment through greater cooperative between the U.S.and China.(p.xii)

He has dealt with China unlike any other foreigner. As head of Goldman Sachs, Paulson had a pivotal role in opening up China to private enterprise. Then, as Treasury secretary, he created the Strategic Economic Dialogue with what is now the world's second-largest economy. He negotiated with China on needed economic reforms, while safeguarding the teetering U.S. financial system.(R.9)

Highlights vs self- reflection:

p.32:”Oriental plaza, the Beijing mega-development on the prime piece of real estate right next to Tiananmen square, would go through numerous iterations as it became increasingly complicated and controversial. The billion-dollar-plus project broke ground in September 1993 but came to a halt the next year amid protests from preservationists and resistance form MacDonald’s, which had earlier signed a 20-year lease and opened its first franchise in Beijing on that very site.”

p.34:”The financing was straightforward, but we knew arranging the deals would be tricky. Provincial governments were generally more willing to experiment than were central government agencies, but it would still require political courage and savvy maneuvering to push ahead, as the country had never sold part of a state-owned power station to foreigners before.”

p.34:”Li Peng was unhappy about the high rate of return to the foreign investors. The Shandong power deal was canceled in December 1993.”

p.49:” Fang Fenglei spoke English imperfectly and was green by our standards. But it was a big mistake to underestimate his talent-or drive. Fang was a man of action, a genius at navigating the Chinese system. I’ve known very few bankers with his ability to get things done=and no one else quite like him in China. A natural storyteller, he could take complex subject and recast them in a simple manner that Chinese bureaucrats could understand and act on.

p.64:”The China Telecom deal had given Zhu Rongji a start on that goal. The first high-profile example of state-owned enterprise reform, it was a true landmark. Its success signaled the international markets’ approval of the country’s economic direction and confirmed Zhu’s supposition that Western capital markets could begin to do for China’s industrial base what bureaucrats who lacked the resolve or skill or fresh perspective could not.”

p.96: Zhu brought Wang Qishan to the central bank as a vice governor to tamp down rampant foreign exchange speculation, which he did. It was the first of many jobs that established Wang as a Mr. Fix-it for cleaning up the messes that festered in pockets of China's booming economy…I could see right away that he was a quick study, with a nimble intelligence and a rare combination of commercial savvy and political skills. He had a gift for knowing how to separate the possible from the desirable in order to get things done.

p.103:Wang Qishan’s deft handling of the mess he inherited in Guangdong was a major milestone for reform and a key advance along the path to an increasingly market-oriented economy.

p.201: “After our formal meeting with Hu… I pressed Hu again on continued currency flexibility, warning that the next Congress would be tough on this issue. I emphazised that opening up financial services would be critical for China’s development and beneficial for its relationship with the U.S. Hu agreed about the importance of opening financial services. But he cautioned me that in this area, leaders had to proceed slowly and “eat one mouthful at a time.”

p.202: “I told the senators that the best approach was not through confrontation-which would only lead to retaliation-but through the kind of tough-minded engagement we were getting in the SED, which was already producing results.”

p.214:”Over my years of close contact with China. I’d learned that it was impossible to separate the country’s environmental challenges from its rapid growth.”

p.215:” At the first meeting in December 2006, we had agreed to cooperate on efficient and sustainable energy use, and the just-completed SED II had included an agreement on a range of environmental issues, including cleancoal technology and discussions aimed at securing an eventual bilateral pact to end illegal logging, which contributes to erosion, desertification, and the loss of vital natural habitats for wildlife.”

p.216:” President Hu had spent years in western China, running the Tibet Autonomous Region as Party secretary from 1988 to 1992. Qinghai was a poor province, where Hu had been encouraging economic development. I knew that my going there would command his attention and respect, in much the same way that working with Tsinghua University to revitalize its School of Economics and Management had strengthened my connections to its famously loyal alumni body, which include Hu himself.”

p.216:”China’s largest lake, Qinghai is also one of its most beautiful. The surrounding province is known as “China’s water tower” because seven of Asia’s biggest rivers, including the Yangtze, Mekong, and Yellow, originate in the mountains there, and the region’s glaciers contribute to downstream water flows. Equal in size to Western Europe, the Qinghai Tibetan Plateau stretches to Central Asia, embracing Tibet, Mount Everest, and part of Kashmir. It plays a key role in the Asian monsoon system, thus touching the lives of more than half of the world’s population.”

p.217:”I’d vetoed a proposed side trip for birding, though I had brought my binoculars just in case. We strolled along the lake.

p.220:” My staff told me you picked up beer cans on the shore of Qinghai Lake. It is clear that you care about China. The situation we are facing is very grim.”

p.232:” We are committed to maintaining a strong dollar, but its value is determined by free markets. We need to pursue policies to keep our economy strong. And we are doing just that.”

p.238:” china's success alone had lifted hundreds of millions out of poverty. Now the country's challenge was to maintain that progress without upsetting its domestic stability or causing a global calamity.”

p.240: “You were my teacher, but now here I am in my teacher’s domain, and look at your system, Hank. We aren’t sure we should be learning from you anymore.” ”We’ve made plenty of mistakes, but you can learn from them.”

p.253:” the interconnectedness of markets caused problems to spread rapidly from one sector to another.

the trouble with money market funds began when a few funds were hurt by their holdings in now worthless Lehman paper”

p.257: The usual G7 format was highly scripted, with ministers reciting talking points to one another and then the group releasing highly technical communique's understandable only to a small group of insiders and members of the press. This time we needed to come together in a serious, substantive way to communicate our resolve to the public and the markets.

p.259:” China's emergence on the international stage being driven by a global financial disaster centered in the U.S. and Europe-but the Chinese, too, had a stake in global economic stability, and I was glad to see them playing a leading role in working to restore confidence.”

p.261:” We didn’t want anyone thinking we were trying to sell precious U.S. assets to the Chinese-or to anyone-at fire-sale prices. Our analysis showed that foreign investment had led to 5 million U.S. Jobs; these paid, on average, 30 percent more than the going rate nationally.”

p.262:”In November 2014, building on the platform of the Ten-Year Framework, the U.S. and China reached a breakthrough agreement to limit greenhouse gas emissions, fulfilling my vision of increased collaboration to combat climate change.”

p.273:”Our of this several-month process came the Paulson Institute, a nonprofit that was to be founded initially only by me. It was officially established in June 2011 with a mission of promoting sustainable economic growth and a cleaner environment by several clear goals: to encourage energy efficiency and better environment of jobs, and to promote responsible executive leadership and best business practices on issues of international concern.”

p.276:”As China’s economy soared, so did its skylines. Six of the world’s 15 tallest buildings are in mainland China.”

p.282:”If China doesn’t integrate its migrants into the urban economy, it risks creating a permanent, and restive, urban underclass living in the kind of baleful slums that plague cities elsewhere in the developing world and that China has mercifully avoided so far. That will not only be a human tragedy and a severe drag on growth, but it will also be a ticking time bomb for the government.”

p.314:”It marked the first time China had agreed to negotiations on the principle of broad market access for the U.S. Crucially, the Chinese indicated they were willing to create a so-called negative list that would name the specific sectors where investment was banned; all other sectors would be open to investment. That was a big improvement over the prevailing policy.”

p.329:”I believe. Xi Jinping and his team are not just thinkers-or talkers-but doers, pragmatists ready to use persuasion and power politics to achieve their goals.””Xi was keen to let me know his administration was not sitting on its hands. After the Third Plenum it had undertaken more than 300 reform measures, he told me. “For each of them we have a timetable…We intend to achieve nearly all my 2017, and all of them by 2020. And 80 of them are to be completed this year alone.”

p.329:”Dating back to 1978 when Deng Xiaoping launched Reform and Opening Up, the Third Plenum of new Party congresses had become known as an occasion for China’s leaders to reveal their bold visions and plans.”…”I believe. Xi Jingping and his team are not just thinkers-or talkers-but doers.”

p.349:”I am mindful of the magnitude of the economic challenge they confront and the slow progress of reform to date. I remain cautiously optimistic, however, because I know how seriously Xi wants to change things, and I have learned over my years in dealing with the Chinese never to underestimate their capacity to get difficult things done.”

p.352:Xi told me in July 2014:”Because we have one-party rule, we need to be a good party. So we have three tasks: self-improvement, self-purification, and self-regulation.”

P.377:”In the long run, for China’s great successes to be sustainable, economic freedom and prosperity must inevitably bring with them greater personal and political liberties.”

p.379:” They would have accepted that helping China to reform its economy, open its markets, protect its environment, and improve the quality of life of its people-all things I have been working on-would bring economic and strategic benefits to the U.S.as well. But that viewpoint has been changing as China has emerged as our biggest, most formidable economic competitor since the end of World War II and has started flexing its newfound military muscle in unsettling ways. As a result, many Americans, from all walks of life, have begun to view China with growing apprehension and resentment. Some would now prefer confrontation to cooperation.”

p.380:”As a proud China grows stronger, it will become more assertive in pursuit of what it perceives to be its interests. We can’t know how these interests may change, only that they may increasingly diverge from our own. So we need to be strong, clear-eyed, and forthright in articulating our core principles to the Chinese and in sticking to them.”

p.389:”It is important that we let the Chinese know how much we welcome their playing a bigger role in international governance. At the same time, we need to convince them that with increased international stature comes a greater responsibility to act in the broadest public interest. Global leaders need to be mindful of the rights and interests of other nations-regardless of their relative power.”

p.391:”Our government must work diligently on a multilateral basis with other major countries to establish norms and enforcement mechanisms for protecting commercial enterprises from cybertheft. This is a tall order but essential for the smooth functioning of an increasingly integrated global economic system. As we gain traction with other countries on corporate cybertheft, it should be easier to get China on board.”

p.392:”There is also a growing suspicion on the part of Americans that someday China might become our enemy. There is no quick remedy to this gap in understanding, because trust must be built slowly by better communication and successful cooperation.”

p.395:”The following are a few principles the U.S. should keep in mind in managing our relationship with China.

(1)Help those who help ourselves.

(2)Shine a light: Nothing Good Happens in the Dark

(3)Speak with One Voice

(4)Find China a Better Seat at the Table

(5)Demonstrate Economic Leadership Abroad

(6)Find More Ways to Say Yes

(7)Avoid Surprises but Be Alert For Breakthroughs

(8)Act in Ways That Reflect Chinese Realities.

9.p.403:”This is a difficult, complex challenge, but we must meet it: there is no historical example of a nation that ignored its fiscal difficulties and was able to maintain its status as a global power for long.”

Golden Sentence:

1.p.95: We are not doing this to get a specific, targeted return, we are investing to signal our confidence in Guangdong.

2.p.236:There’s a Chinese saying that people sometimes have to fight before they can become friends.

3.p.263:”I would continue to push my Chinese friends to speed up their reforms, for the simple reason that doing so would be good for China, good for the U.S. and good for the world.”

4.p271:” on the brink, to record the challenges we had encountered and how we dealt with them. I believed it was important to never forget the lessons we learned during the financial crisis.”

5.p.272:”A decade before, China’s banks had been near collapse. Now they were well capitalized and thriving while many of their Western counterparts were being bailed out. Some on our shores where penning paeans to the state-directed market socialism of the Chinese economic model.”

6.p.278:”It’s like an acrobat walking with a bamboo stick for balance.”

7.p.326:”Our system is not suitable for globalization. We can’t hire and keep people from abroad. We have to create value, but at the same time, we have to deal with the people we have and Can’t just lay them off. We can’t just jump from the current situation to the future. What are our recommendations?”

8.p.327:”I couldn’t help but be impressed by the magnitude of the effort being made and expenses being incurred to invest in China’s upcoming leaders. But I was struck by the paradox the Party faces. For all its efforts, what the Party must do, if it truly wants SOEs to evolve into global leaders, is the hardest thing yet. It has to find a way to set them free.”

9.p.391:” We should also look for ways to apply behind-the-scenes pressure by using carrots or sticks to induce China to begin working toward solutions.”

Conclusion:

1. Dealing with China or bowing to China. How to hold our state fast and get a great deal with China. Paulson shows us the wisdom from his strong background with multiple experience.

2. Wang Qishan is a history major young man and wrote his own history to lead China to reform economic market. Wang facilitated cooperation with U.S. investment bank Morgan Stanley. China could trust a person by his ability, more than his education background.

3. Fang Fenglei spoke English imperfectly and was green by our standards. But Fang was a man of action. A natural storyteller, he could take complex subject and recast them in a simple manner that Chinese bureaucrats could understand and act on. They believe their unlimited ability rather than their limited knowledge.

4. Lehman’s economic turbulence drives China to play a leading role in working to restore global economic confidence.

5. To dance with lion cause danger or bilateral benefits depends on not only via political skills, further more considerate warm global human-being concern. We also need to train ourselves as strong as the lion, too.

6. To build nonprofit Paulson Institute is a great agape attitude.

7. Urban poverty is the ticking time bomb for China.

8. We are afraid that China drive all the young students from Taiwan. But more important is to set them free and to open an eye to see China. It will help us in our near future. Only if we grow stronger , we will find a way out.

9. “Fight or Flight”, Pauslon shows us a great attitude to deal with our enemy via IPO , eco-friendly behavior and Paulson Non-Profit Institute. It’s built a bridge between China and the world.

10. Lee Kuan Yew applause Deng:「I would say the greatest was Deng Xiaoping. At his age, to admit that he was wrong, that all these ideas, Marxism, Leninism, Maoism, they are just not working and have to be abandoned, you need a great man to do that…」. To admit the wrong from the parent will change a family, to admit the wrong from the prime minister could change the world.

11. 1978 Deng Xiaoping visited Singapore ,then he also paid a visit to Japan. Later started to open China up to the world. From 1997 till now. Paulson assist China open up to the world wider and broader again via SED、IPO and The Non-profit Paulson Institute to let the Chinese know how much they welcome their playing a bigger role in international governance and need to convince them that with increased international stature comes a greater responsibility to act in the broadest public interest and environment. Global leaders need to be mindful of the rights and interests of other nations-regardless of their relative power.

12. From the vertical line, Taiwan is isolated, from the horizontal line, Taiwan locates in the center of Asia, Cosco figure out that the No.1 outstanding buying power is the Cosco in Taiwan, and they decide to choose Taiwan as the most important flagship store which is the stepping stone to open his market in China. China is reincarnated to a great lion after the cultural revolution from 1966 to1976. We,as an ant, even can’t ignore it ,need to stick together and learn how to dance with the lion.

13. In China, if you didn’t choose the key person to negotiate, it my kill you and your country. Paulson is an America “Red-crown businessman who opens a door for himself and America. Paulson spends time in working on the mutual economics, also getting closer to the leaders by heart. p.216:” President Hu had spent years in western China, running the Tibet Autonomous Region as Party secretary from 1988 to 1992. Qinghai was a poor province, where Hu had been encouraging economic development. I knew that my going there would command his attention and respect, in much the same way that working with Tsinghua University to revitalize its School of Economics and Management had strengthened my connections to its famously loyal alumni body, which include Hu himself.”

14. Nowadays, to run a business in China needs to pay the employee more for the salary, pension, medical insurance, unemployment insurance, injury insurance, maternity insurance, housing fund. At the beginning, Chinese government shows a great concern to help the businessman from Taiwan for the tax avoidance. And later it’s the bait to sue you for the tax evasion. Chinese government once in place for the tax which calculated in a higher demand in full speed. If Taiwan businessman can’t cooperate, they kick you off China. If you can keep your life, it’s already the best blessing, don’t ever think about escaping with your money.

Dealing With China Summery and Questions by Clive and guided by Carol

Dear sisters,

The book Dealing With China is going to be discussed on 4/2. There are 20 chapters divided into 3 parts. In the book, Henry M. Paulson- the author surely didn’t lay all the cards on the table but clearly introduced the big guns who he had been cooperating with. It can’t be exempted from convention to praise them for possessing both ability and political integrity. On the other hand, He revealed the severe and lingering evils about China’s economy and society between lines.

Certainly he also hinted he made a very positive contribution to the success of China’s economic take-off. In the book, so many people and numbers mentioned makes me feel somewhat bothersome. Our kind consultant Clive generously helped me bring some questions ( he will be in Japan until 4/8). Many thanks for Clive’s timely help. And I’m looking forward to meeting you all- the real leaders. The following are the questions from our consultant Clive.(from Carol’s letter)

1. What insight does this book offer on "dealing" with China?

p.263:”I would continue to push my Chinese friends to speed up their reforms, for the simple reason that doing so would be good for China, good for the U.S. and good for the world.”

It’s a pep talk for the democratic country. They are dealing with a tiger. How not to be the offerings needs brainstorm.

2. Is the book really about "dealing" with China, or doing deals with Chinese officials?

p.236:There’s a Chinese saying that people sometimes have to fight before they can become friends. It’s “warm-up”fight with the officials and the “top officials”. Like Paulson mentioned that if you wanna negotiate with China, you got to find out who is in “charge”.

3. Paulson was an executive at Goldman Sachs, how much of this book is about himself and how much is about China?

1978 Deng Xiaoping visited Singapore and started to open China up to the world. From 1997 till now. Paulson assist China open up to the world wider and broader again via SED and The Paulson Institute(p.297)

4. Do you think the portrayal of China is realistic?

I believe almost so and give us an eye to the window of China with his first hand informations.

5. The way forward, suggests Paulson, is to “find China a better seat at the table.” Can China be trusted at the table?

p.391:” We should also look for ways to apply behind-the-scenes pressure by using carrots or sticks to induce China to begin working toward solutions.”

p271:” on the brink, to record the challenges we had encountered and how we dealt with them. I believed it was important to never forget the lessons we learned during the financial crisis.”

To dance with tiger cause danger or bilateral benefits depends on not only via political skills, but a more considerate warm global human-being concern. We also need to train ourselves as strong as the tiger, too.

6. The author presumes to know about the Chinese mindset based on highly controlled and scripted trips? Is that a realistic source for understand China?

p.403:”This is a difficult, complex challenge, but we must meet it: there is no historical example of a nation that ignored its fiscal difficulties and was able to maintain its status as a global power for long.”

SED is a way to start to unbutton the riddle

7. When Paulson is critical of any Chinese leaders. it is only those who have been removed from power by now. Did this stand out to you? If not why not?

Wang Qishan is a history major young man and wrote his own history to lead China to reform economic market. Wang facilitated cooperation with U.S. investment bank Morgan Stanley. China could trust a person by his ability, more than his education background. 2018,China's parliament has endorsed Xi Jinping for a second term and appointed Wang Qishan as his vice-president. I really feel impressed.

8. Is this a handbook for dealing with China or a story about a man with power and backing?

Dealing with China or bowing to China. How to hold our state fast and get a great deal with China. Paulson shows us the wisdom from his strong background with multiple experience. We are afraid that China drive all the young students from Taiwan. But more important is to set them free and help China will help us in our near future. If we can’t stop it, then, follow the drive and find our own way out. When we help others, we will help ourselves.

9. What does this book tell us about the lives of ordinary Chinese people? How likely are they to see and experience any advantages or benefits from American intervention?

Urban poverty is the ticking time bomb for China.

10. How fair do you think this book is?

To build nonprofit Paulson Institute is a great agape attitude.

p.263:”I would continue to push my Chinese friends to speed up their reforms, for the simple reason that doing so would be good for China, good for the U.S. and good for the world.”

“Fight or Flight”, Pauslon shows us a great attitude to deal with our enemy.

※Discussions of “Dealing With China” from KIWC members:

1. It is with no surprise that after closing its ties with the whole world, when China began opening its economy to the whole world, it will definitely catch the attention of the whole world. Being the highest population country in the world, its potential of becoming the world’s biggest economy sector is surely a force that cannot be ignore. For those who has caught up with this wave, they benefited from riding with this wave, and for those who did not catch up, still there are lots of unknown and instability they would have to challenge to do business with China.

After closing itself for almost a century , initial opening of the country economy’s is filled with a sense of mission and dream for China’s leaders, and being backward for so long , of course, China would have to first established close ties with certain countries which would help China greatly in building its economy,and one of the country naturally is the United States of America. And that’s where our book “Dealing with China” which we is written by Henry Paulson comes in . Its indeed a challenge to read this book, and I would say its not an easy book ladies. I have to apologise for not completing reading the book, but after joining in the discussion with our book club members, I am indeed full of admiration for all for their insights and sharing. I myself would like to look at this topic in a objective viewpoint. When businessman are doing business, I am sure, everyone would be wise enough to remember not to put all your eggs in one basket, and put many consideration into the investment that they are going into. This would involve a detailed market analysis, risk factors analysis, whether its your very own,financial ability, etc. and what makes all these interesting is you will have to take into consideration the human factor. And human factor is one consideration which you cannot use facts and figures to ananlyse because its involves the nationality that you are dealing with. And in this book we are dealing with the Chinese race . And China itself is an ancient country as old as the Egyptian pyramids with its ancient cultures having a strong influence to its people and not to mention after becoming one of the biggest communist country of the world and also underwent the cultural revolution, its not an easy task for the Chinese to trust foreigners, and the same as well to foreigners who wants to invest in China.

I would say Paulson comes into the picture not only to help China in its economy and becoming the important person to help China to deal with the world, also underlying this whole picture is the sensitive political situation which the world is facing, with America being the strongest force in the free world countries during that time period, and communism being the opposing force to the free world, and China having such close ties with Russia. In order to break this, China opening its economy is not only a issue that concerns itself, but the whole world as well, how to balance this power stability between America and Russia as well, and I feel that is why America provided such support to China when the opportunity arised, and Paulson is being able to make such close contacts with the high ranking Chinese officials of the Chinese regime communist government. One of the best thing that Paulson did is to set up a Think Tank organization which stands like a objective third party for China which the Chinese can put a cetain level of trust in it for its need for vast amount of information and data which is needed for its economy to develop in its initial stage.

So sorry that I did not complete reading the book, this is my viewpoint and my conclusion is no matter what countries that businessman is dealing with , no man is stupid enough to put all your trust in one particular country or race, it would have to be done under careful and detailed analyzation of many aspects and how you managed them after consideration of all risks factors and one of the important factor is its culture and how this affects the people which we are dealing with. And for Taiwan its more complex because of the political situation we are with China, and a lot of emotions come in as well, whether its good or bad , depending of your experience dealing with China, the chinses people, and the outcome of your experience and investment. (Theressa)

2. This book is more like an memoir of Paulson’s life during his time as an business man of Goldman Sacks and as a Secretary of the financial department of USA. He has been in and out of China for more than 70 times since 1991, he described vividly about how he met with all the VIPs like Zhu Rongji, Wang Qishan, Hu Jintao, Wu Yi. And Xi Jin Ping,so forth. He had tried to help china to Launch IPOs and latter to established SED (strategic economy dialogue) and pushed for the market determined of Renmin bi currency. I found myself like the book, and also benefit from the learning of what had happened after Deng Xiaoping’s reform policy.

In the year of 2003, Paulson stepped down from representing USA to be a ordinary people, when Bush’s term was over, but his compassion to China especially to the west of the country was still remained. However the heavily polluted air and water worried him, he said the water of Yangtze River, Mekong River and Yellow River run plural to each other originate from the Tibit plateau and the downstream contribute to the central Asian, Mt Everest, and part of Kasmir, touching the life of more than half of the world’s population. For all the concerns he has to the environment and to the human health, he and his wife Wendy funded The Paulson Institute.

China is now a much stronger country; however they still have many problems of their own. It is very kind of Paulson, trying to help. However, being a Taiwanese, I care more about Taiwan, all I want to see and to hope for is Taiwan become a better place to live, other than that I….

Thanks to Carol, she made me review the book and find words to say about my feeling.(Faye)

3. A profound book from the world famous financial elites that dealing with the major leaders & players to sketches of the back-room talks by using IPO to stimulate accountability, restructuring & capital investment that guided & helped Chinese economic move from a centrally planned system to a market based global one at the right time.(Lydia)

4. Dealing with China or bowing to China. How to hold our state fast and get a great deal with China. Paulson shows us the wisdom from his strong background with multiple experience.

Fang Fenglei spoke English imperfectly and was green by our standards. But Fang was a man of action. A natural storyteller, he could take complex subject and recast them in a simple manner that Chinese bureaucrats could understand and act on. They believe their unlimited ability rather than their limited knowledge.

Lehman’s economic turbulence drives China to play a leading role in working to restore global economic confidence.

Lee Kuan Yew applause Deng:「I would say the greatest was Deng Xiaoping. At his age, to admit that he was wrong, that all these ideas, Marxism, Leninism, Maoism, they are just not working and have to be abandoned, you need a great man to do that…」. To admit the wrong from the parent will change a family, to admit the wrong from the prime minister could change the world.

Urban poverty is the ticking time bomb for China. 1978 Deng Xiaoping visited Singapore ,then he also paid a visit to Japan. Later started to open China up to the world. From 1997 till now. Paulson assist China open up to the world wider and broader again via SED、IPO and The Non-profit Paulson Institute to let the Chinese know how much they welcome their playing a bigger role in international governance and need to convince them that with increased international stature comes a greater responsibility to act in the broadest public interest and environment. Global leaders need to be mindful of the rights and interests of other nations-regardless of their relative power.

In China, if you didn’t choose the key person to negotiate, it may kill you and your country. Paulson is an America “Red-crown businessman who opens a door for himself and America. Paulson spends time in working on the mutual economics, also getting closer to the leaders by heart. p.216:” President Hu had spent years in western China, running the Tibet Autonomous Region as Party secretary from 1988 to 1992. Qinghai was a poor province, where Hu had been encouraging economic development. I knew that my going there would command his attention and respect, in much the same way that working with Tsinghua University to revitalize its School of Economics and Management had strengthened my connections to its famously loyal alumni body, which include Hu himself.”

Nowadays, to run a business in China needs to pay the employee more for the salary, pension, medical insurance, unemployment insurance, injury insurance, maternity insurance, housing fund. At the beginning, Chinese government shows a great concern to help the businessman from Taiwan for the tax avoidance. And later it’s the bait to sue you for the tax evasion. Chinese government once in place for the tax which calculated in a higher demand in full speed. If Taiwan businessman can’t cooperate, they kick you off China. If you can keep your life, it’s already the best blessing, don’t ever think about escaping with your money.

We are afraid that China drive all the young students from Taiwan. But more important is to set them free and to open an eye to see China. It will help us in our near future. Only if we grow stronger , we will find a way out.

From the vertical line, Taiwan is isolated, from the horizontal line, Taiwan locates in the center of Asia, Cosco figure out that the No.1 outstanding buying power is in Taiwan, so they decide to choose Taiwan as the most important flagship store which is the stepping stone to open his market in China.

China is reincarnated to a great lion after the cultural revolution from 1966 to1976. We, as an ant, even can’t ignore it , need to stick together and learn how to dance with the lion.

To dance with lion cause danger or bilateral benefits depends on not only via political skills, further more considerate warm global human-being concern. We also need to train ourselves as strong as the lion, too.

“Fight or Flight”, Pauslon shows us a great attitude to deal with our enemy via IPO , eco-friendly behavior and Paulson Non-Profit Institute. It’s built a bridge between China and the world. (Emma)

5. Helen’s sharing

※Florence Peng's answers to the questions of our April's book " Dealing with China"

1. Is the book really about "dealing" with China, or doing deals with Chinese officials?

There is now a trade war between US and China. Was this war launched by US, or US officials?

With the high-profile positions Paulson held, it is understandable that he mostly dealt with Chinese officials. However he established the Paulson Institute in 2011 that dealt with issues which cover wider scope of China.

2. Do you think the portrayal of China is realistic?

Different people portray China in different ways, depending on his/her personal experiences and many other things, including ideology.

3. The way forward, suggests Paulson, is to “find China a better seat at the table.” Can China be trusted at the table?

Now US is trying to get North Korea to sit down at the table. Is North Korea trustworthy? If we look at the world’s history after WWII and list the top 3 most influential countries; are they trusted?

4. The author presumes to know about the Chinese mindset based on highly controlled and scripted trips? Is that a realistic source for understand China?

Maybe not, but again whose mindset can really represent “Chinese mindset”, Chinese officials? Or ordinary Chinese people? Or Chinese dissidents? At least he set up Paulson Institute which is still in full operation today with a staff number over 50. At least he tried to understand China through these 50 persons, many of them are Chinese.

He was also deeply involved in a rescuing a Chinese dissident, the event I don’t think is “highly controlled and scripted”. He also described an incident that his family were eavesdropped in hotel when they had a private trip to China. I don’t think this was “scripted”?

5. Is this a handbook for dealing with China or a story about a man with power and backing?

A high-respected Taiwanese/American entrepreneur Morris Chang highly recommended this book. Morris made a lot investment in China. There must be reasons he recommended this book, other than the book is “a story about a man with power and backing”.

6. What does this book tell us about the lives of ordinary Chinese people? How likely are they to see and experience any advantages or benefits from American intervention?

As far as I can recall, this book doesn’t aim to describe ordinary Chinese people’s lives. Maybe we should pick up such a book next time.

Related Reading:

1. Dealing with China or bowing to China: https://news.mingpao.com/pns/dailynews/web_tc/article/20161104/s00012/1478197233650

2. Dealing with China review: https://www.amazon.com/Dealing-China-Insider-Economic-Superpower/product-reviews/1455504211

3. A thousand kisses deep: http://blog.sina.com.cn/s/blog_4fdd800c01017yq3.html

4. Henry M. Paulson: https://en.wikipedia.org/wiki/Henry_Paulson

5. The Goldman Sachs Group: https://zh.wikipedia.org/wiki/%E9%AB%98%E7%9B%9B

6. The Goldman Sachs Group: http://wiki.mbalib.com/zh-tw/%E9%AB%98%E7%9B%9B%E9%9B%86%E5%9B%A2

7. The Bank that Rule the world: https://viewpoint.pts.org.tw/ptsdoc_video/%E9%AB%98%E7%9B%9B%E7%B5%B1%E6%B2%BB%E4%B8%96%E7%95%8C/

8. Invest Client is the best investment: http://www.chinatimes.com/newspapers/20161024000118-260207

9. Dealing with China Review: https://book.douban.com/subject/25882350/

10. Wang Qishan: https://en.wikipedia.org/wiki/Wang_Qishan