China impacts everyone-an economic superpower competing in every arena of human endeavor. Here are those who run China, its current and future leaders. Here's how China's leaders think about China's growing global strength-in trade, business and finance; in diplomacy, defense and security; in science, technology and innovation; in culture, media and sports-and what this all means for the future of the world. Here also are China's leaders in economics, private business, state-owned enterprises, banking, foreign affairs, military, healthcare, religion, film, television, press, Internet, literature, ideology, and more. Robert Lawrence Kuhn speaks with over 100 Chinese leaders and has inner access to Communist Party officials and material. He focuses on President Hu Jintao's philosophies and policies, and looks to the next generation of China's leaders. Who are China's future leaders? What are they doing today? What's their way of thinking about China's place in the world? What about prospects for democracy and political reform? Is there a road map for political reform? What about the so-called "China Threat?" Or the emerging "China Model?" Kuhn confronts China's leaders with China's problems: economic imbalances (rural vs. urban), pollution, unsustainable development, migrant workers, human rights, democracy, rule of law, corruption, minorities, ethnic conflicts, censorship, social instability, ideological shakeup, shifting moral and family values, religious repression, death penalty, organs from executed prisoners, global conflicts, resource competition, and the worldwide financial crisis. The best way to know China-the best way to do business with China-is to know what motivates China's leaders and what drives their policies. This book is an intimate, candid portrayal of how China's leaders think. Readers will never get closer to China's leaders than this.
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Robert Lawrence Kuhn has a doctorate in brain science and is the author or editor of more than 25 books. Five of his books have been translated into Chinese, including two editions of Closer To Truth. Dr. Kuhn is the author of The Man Who Changed China: The Life and Legacy of Jiang Zemin. The Chinese edition was the number one bestselling book in China in 2005 with sales of over one million and substantial publicity. His book is recognized as the first time that a biography of a living Chinese leader has been published on the Chinese mainland, and stories of its success in China have run in the international press. Dr. Kuhn is also recognized as an international investment banker and expert on China. Since 1989 he has been advising the Chinese government on economic policy, mergers and acquisitions, science and technology, media and culture, and international communications. He is Senior Advisor to Citigroup and was president and co-owner of The Geneva Companies, the leading mergers and acquisitions firm for middle market businesses, which he sold to Citigroup in 2001. Dr. Kuhn regularly appears on CNBC / Bloomberg, writes commentaries in BusinessWeek, and has a featured column in Chief Executive magazine ("Uncommon Wisdom"). Dr. Kuhn is chairman of The Kuhn Foundation, which he founded and funded to disseminate new knowledge and understanding in science and philosophy, support cultural endeavors, and promote good relations between America and China. He is vice chairman of the new Beijing Institute for Frontier Science and on the editorial board of Frontier Science journal. Dr. Kuhn initiated a high-level conference between the AAAS and the Chinese Association for Science and Technology on "Scientific Ethics, Responsibility and Freedom" (2007).
Observing New China's 60th anniversary in 2009, Westerners marvel at the country's momentous changes. The obvious improvement in the standard of living of most Chinese, and the economic strength of the country, is evidenced in virtually every city and town. The diversity in dress and entertainment, the new flexibility in sexual behaviors-even the increase in divorce and legions of lawyers-all speak to the uncontestable fact that China is no longer the drab, monolithic society so ingrained in Western consciousness.
But even more fundamental is the change in outlook and spirit. One need only speak with Chinese people in the major cities to sense their newfound self-confidence and enthusiasm. They tell you plainly what they think-whether how to make money, or their dislike of government bureaucracy, or of the omnipresent air pollution. They give you their opinions bluntly-you don't have to ask twice-and they don't look over their shoulder before they speak out.
The change in the economic lives of the Chinese people has been staggering: Since 1978, China's GDP per capita has increased more than 40 fold. Arguably, the Chinese economy is now the second largest in the world, and in another 30 years it may well be the largest. Average salaries are low by Western standards, but prices are also low, so that most people, even rural farmers, are living far better than the income statistics indicate. Over a billion people have access to television; three decades ago only 10 million did. In 1978 there were 200 foreign companies doing business in China; today there are hundreds of thousands. In fact, China absorbs more foreign investment than any country in the world except the United States. Chinese corporations are selling internet routers and refrigerators competitively around the world and Chinese entrepreneurs are building strong private businesses on the Internet. The old communist ideal of the glorious masses in class struggle is dead and buried. It has been replaced by something new and dynamic, an economic engine fueled by personal dreams and national pride. Although economic improvement-higher standard of living, financial success, luxuries of life-are goals in every country, there is extra energy to achieve these goals in China. The motivation goes beyond material benefits: the Chinese want to show the world that they are in every way a modern nation and in every sense a great power. If this demonstration requires material wealth, technological prowess, military strength, a world-class aerospace program, then these are what they must and will achieve. In every sphere of human endeavor, from business to culture, Olympic athletes to space taikonauts, music and art to modern science and ancient philosophy, China seeks its fair share of world leaders. For example, in every industry of importance, China's leaders expect its corporations to become among the largest and most successful in the world. When Zhang Ruimin, CEO of household electronics giant Haier, stated in the middle 1990s that Haier's goal was to become a leading global company, foreign analysts yawned or smirked. Today, Haier is the world's second largest manufacturer of refrigerators (after Whirlpool), among the top 1000 manufacturers in the world, and its brand name has joined the prestigious list of the World's 100 Most Recognizable Brands. China is proud that the stock market capitalizations of its companies in energy, telecommunications and banking are among the largest in the world.
The roots of this pride go deep, to the visceral feelings of a people whose civilization of culture and technology led the world for centuries, only to be humiliated and oppressed by foreign invaders and then stymied and scourged by domestic tyrants.
"To understand our dedication to revitalize the country, one has to appreciate the pride that Chinese people take in our glorious ancient civilization," says China Vice President Xi Jinping. "This is the historical driving force inspiring people today to build the nation. The Chinese people made great contributions to world civilization and enjoyed long-term prosperity," he explains. "Then we suffered over a century of national weakness, oppression and humiliation. So we have a deep self-motivation to build our country. Our commitment and determination is rooted in our historic and national pride."
Xi is at pains to stress that pride in China's recent achievements should not engender complacency: "Compared with our long history, our speed of development is not so impressive, because it took thousands of years for us to reach where we are now. We need to assess ourselves objectively," he emphasizes. "But no matter what, China's development, at least in part, is driven by patriotism and pride."
Li Yuanchao, head of the Party Organization Department, which is responsible for all high-level personnel appointments in the Party, government and large state-owned enterprises, emphasizes that it's China's national spirit that has motivated people to keep looking ahead and seeking further progress.
"Although the Chinese people are not as wealthy as Westerners, and China lags behind developed countries in many areas such as technology, social systems, and environmental protection," Li says, "I am confident that the Chinese people as a whole are very positive about their country's development and have confidence in their future. We have a sense of adventure and pride and we are ambitious to build our society."
* * *
My first lesson in how deep such pride runs came in 1992. I had arrived in China for the first time three years earlier, in February of 1989, about six weeks before students began gathering in Tiananmen Square, but it would be years before I would begin to understand what was really going on here. After the tragic events of June 4, I determined not to return to China. About 15 months later, however, my mind was changed by appeals for support from reform-minded friends. When I did come back, I came to know Professor Bi Dachuan, an academic (mathematician) and defense analyst with quick wit and trenchant criticism. It was a time of repressed freedoms: the post-Tiananmen conservatism was in its ascendancy; if anyone in Beijing wanted to talk politics-when confiding to foreign friends, for example-they would insist on leaving their offices or homes and walk around in the open air or drive around in moving cars. That's what made Bi stand out. Even then, he remained cavalier in his criticism of the government, the planned economy, classical communism. His comments were slyly comical, delivered with a mischievous glint of impolitic cynicism. Bi was certainly not alone among the Chinese intelligentsia in disparaging the government, but I was nonplussed when he offered these barbed witticisms in much-too-public situations, such as when addressing a dozen of his professional colleagues. How could he get away with such an unbridled tongue, I wondered?
Although I didn't at the time know him well, I couldn't recall Bi having said anything complimentary about China's political or economic system-and so, one fine day on a remote hilltop outside Beijing, I felt secure in applauding the American action in preventing the 2000 Olympics from being held in Beijing. This was how the U.S. government intended to punish the Chinese government for its armed response in Tiananmen Square. Bi and I were alone, and I was fully expecting his hearty support of America's blackball.
His response left me speechless.
"You stupid Americans," he scolded me sharply. "You insult China and you offend me!" He continued, unsmiling. "How stupid and insulting," he said again, glaring at me as though I myself had cast the blackballing vote. "How stupid of your country and how insulting to mine!"
It was a verbal stinging I shall not forget, and a searing tutorial of what really counts in China. Don't allow the internal disputes to cloud your vision. Don't assume that derogations of the government, or of communist ideology, indicate a diminished patriotism. The pride of the Chinese people-pride in their country, heritage, history; pride in their economic power, personal freedoms, and international importance; and, yes, pride in their growing military strength-is a fundamental characteristic that one encounters over and over and over again. As I see it, Pride is the first of the guiding principles that energizes a great deal of what is happening in China today.
* * *
Chinese pride invites itself into diverse policy debates. Rarely does it determine decisions, but often it influences them. "It involves the pride of the nation," is how former Information Minister Zhao Qizheng characterizes Chinese advances in science and technology. Consider China's spaceflight programs, including the Shenzhou manned spacecraft and lunar missions, an apparent luxury in a country still grappling with widespread poverty, but enthusiastically supported by an overwhelming majority of the people. Why? Pride.
Although President Hu Jintao stresses how science and technology drives China's development, he also radiates pride in China's renewed contributions to humanity. Speaking just after the successful return of China's first manned space voyage, Shenzhou V, in 2003, Hu said, "Our science-based civilization is due to the efforts of all nations and is a sterling demonstration of human creativity ... spurred by the interaction and integration of the world's diverse wisdom and cultures." Hu asserted that, over time, each great civilization has contributed to the global advancement of science and technology, and that history shows that the active, free-flowing exchange of information among civilizations promotes such advancement. Hu attends ceremonies for each of China's manned space flights.
Zhao Qizheng also points with pride to the fact that, during World War II, China was the only country in the world that gave shelter for Jews seeking to escape the Nazi Holocaust in Europe. While even America and Britain refused entry for Jewish refugees, China, though enduring severe tribulation at the hands of the Japanese, opened its doors so that more than 20,000 Jews could come to safety in Shanghai, where they became known to history as the "Shanghai Jews."
Moreover, consider the long-standing internal debate over whether China should enter the World Trade Organization (WTO). Although the contesting views pitted the economic benefits of foreign investment against the heightened competitive pressure from foreign companies, an underlying motivation was that China belongs in the WTO because China is a great nation and must be counted as such.
This quest for pride is woven into the fabric of much of China's modern history. In the West, for example, the Korean War is remembered as a wretched, miserable conflict, which epitomized the bleak years of the Cold War. For many in China, however, the same conflict is viewed as a crucible of national resuscitation and revival. After three years of hurling wave after wave of human sacrifices, China managed to end the war in a stalemate. It was an exceptional achievement. The United States, the greatest military power in the world, which less than ten years earlier had vanquished both Germany and Japan, was battled to a draw - grit and determination, in the Chinese view, having thwarted far superior military technology.
Though "victory" came at a tremendous cost-700,000 to one million Chinese lives were lost, including that of Mao Zedong's own son-for many Chinese citizens, the war seemed a turning point. The war was all about national sovereignty and national pride. The treaty ending the Korean War was the first in over a century which was not "unequal." Chinese credited the Communists, particularly Mao, with the country's reemergence as a world power. After interminable years of subjugation and humiliation, China finally had a unified and independent government, not beholden to foreigners. Though Sino-American relations had hit an all-time low, China had stood up with pride.
Such pride was in evidence again 45 years later, as China celebrated the end of British rule in Hong Kong, and its return to Chinese sovereignty. For 925 days before July 1, 1997, a huge "countdown board" in Tiananmen Square ticked off the seconds to the historic event. As the Chinese flag reached the top of the flagpole eight seconds after midnight, the precise time determined in painstaking negotiations, joyous pandemonium broke out across China as huge crowds screamed, jumped and danced, waving Chinese and Hong Kong flags. Colonial humiliation of 155 years had come to an end.
In 2006, Hong Kong's stock market surpassed New York as the world's second most active board (after London) to float initial public offerings. The largest new stock listings were companies from China.
If the stock exchange in Hong Kong, with its legions of investment bankers wearing elegant tailored suits, seem from a different planet than the killing fields of Korea, with its legions of exhausted soldiers wearing filthy military fatigues, they draw together under the rubric of Chinese pride.
* * *
Sovereignty exemplifies Chinese pride. Even the Soviet Union, China's fraternal-socialist-communist big brother, found out the hard way that if China's pride as an independent nation was at stake, there was no compromise. In 1958, the Soviets proposed building a long-wave transceiver station in China and establishing a joint fleet. Mao rejected both.
China's fractious relationship with Moscow-in part because of a common and disputed border running for thousands of miles-exploded in the 1960s. One of the untold stories of this under-reported hot war was how Soviet tanks were unstoppable in their advance into Chinese territory until Israel, in highly secret arrangements while China still refused to recognize the fledgling Jewish state, provided the Chinese with special weaponry to destroy those Soviet tanks and defend their own tanks.
In 1963, when the United States, the Soviet Union and Britain signed the Partial Test Ban Treaty, China denounced the "act of hegemony," and took action to break the tripartite nuclear monopoly. The mushroom cloud rising into the desert sky in northwest China in October 1964 startled the world, revealing the rapid progress of China's nuclear technology and affirming the country's determination to safeguard its sovereignty and independence.
China's pride in its nuclear achievements, like the pride in its aerospace enterprises, made American accusations of Chinese nuclear spying, particularly in 1999, all the more galling. The underlying affront was not so much the spying charge itself but the implication that China was incapable of developing advanced technology on its own. To the Chinese, an independent nuclear and aerospace capability makes the unmistakable assertion that China will never again be humiliated by foreigners, that China will control its own destiny, and that if there is to be peace in the world, an independent China must help guarantee it.
* * *
China did of course eventually win the right to stage the Olympics. On July 13, 2001, when the International Olympic Committee would announce the name of the host city of the 2008 Summer Games, an estimated 400,000 expectant Beijingers gathered in Tiananmen Square, hoping to celebrate victory. As China Central Television flashed the message "We Have Won" in triumphant red characters across the screen, a roar of excitement rumbled through the square and from there across the city. People of all walks of life celebrated by throwing flowers, waving flags, and banging on drums and gongs, while cars zoomed along Beijing's main thoroughfares honking incessantly.
Six-and-a-half years later, in early 2008, Chinese pride assumed a different form, one born of nationalism and anger, as the Olympic Torch began its traditional journey from the birthplace of the games in Olympia, Greece, and, carried by 22,000 torch bearers, traveled in a worldwide relay some 137,000 kilometers (85,000 miles) on its way to Beijing. After riots erupted in Tibet in March, and the Chinese government sent in troops, highly visible protests dogged the Olympic Torch in cities along its route, changing the character of the relay from celebratory to confrontational.
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Excerpted from How China's Leaders Thinkby Robert Lawrence Kuhn Copyright © 2009 by John Wiley & Sons, Ltd. Excerpted by permission.
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