Saltar a navegação
Red Capitalism
Book

Red Capitalism

The Fragile Financial Foundation of China's Extraordinary Rise

Wiley, 2011 mais...

Buy book or audiobook


Editorial Rating

8

Qualities

  • Innovative

Recommendation

This insider’s report on China’s version of capitalism tells a revealing story about an economy that is poised to become the world’s largest. Asia banking experts Carl E. Walter and Fraser J.T. Howie expose the interconnections of a financial system dominated by the Communist Party; the conflicts among ruling families, corporate executives and technocrats – each vying for political and personal gain; and the challenges opaque, state-run companies present to Western investors. The authors delve into the byzantine, often clandestine machinations behind the modern and sophisticated screen China presents to the rest of the world. The book provides a detailed account of major players, agencies and policies, as well as an advanced-level financial analysis of the banking and capital market sectors. The book’s most interesting points sometimes bog down in historical details, but patient readers reap rewards. getAbstract recommends this extraordinary behind-the-scenes look to those who want to know what’s really driving China’s dazzling growth. Surprisingly, this is a story most people do not know.

Summary

“The Great China Development Myth”

The 2008 Olympics put China in the world spotlight. In preparation for the competition, the nation built highways, stadiums, apartments and hotels. Overnight, workers placed 40 million flowerpots along main streets to welcome visitors. China’s spectacular reintroduction to the West was even more remarkable considering that the nation was effectively bankrupt just 30 years earlier. In 1978, Beijing resembled a devastated city, while Shanghai, once considered the most cosmopolitan city in the East, was run-down, its residents sleeping in the streets for lack of air conditioning. The nation was so broke that when Premier Deng Xiaoping went to the United Nations in 1974, his delegation could find only $38,000 in state funds to pay for the trip.

While many in the West have lent credence to the Great China Development Myth, China’s rapid economic transformation from the 1970s to the present has not been linear nor without mistakes. The changes began when long-time leader Mao Zedong died in 1976 and Deng acceded to power in 1978. China’s journey coincided with a wave of financial deregulation that swept the world. Seeking to follow the US...

About the Authors

Carl E. Walter worked in China’s financial sector for 20 years; he held a senior position in China’s first joint venture investment bank. Fraser J.T. Howie is managing director of a brokerage firm in Singapore.


Comment on this summary