Timothy Yu
I first heard of this book through a YouTube piece on an interview of the author by a reporter from the Washington Post. I was impressed by this very articulate young London School of Economics professor opining on the Chinese model of political economy and a host of other economic issues. As most book launches go, the interview centered more on her view on related current events rather than the details of her book. It piqued my interest to find out more: about how she advanced her points; what interesting stories/examples she cites; and whether the book is easy to read. Needless to say, I was also intrigued about her background: was she from China? Taiwan? Hong Kong? ABC? At that time, around late June 2023, there were long holds on her book at local libraries, suggesting it was a popular book. So, I purchased an audiobook. Not only is it timely, but the book is also a gem, a real treat, and a pleasant read.
So first, a few words about her background. She was born in Beijing in the 1980s. Her father was a high official in the China banking system (among the first to enter university after working as a laborer during the Cultural Revolution). She came to the US in 1997 as an exchange student, attending high school in Bronz, New York. With a BS and Ph.D. from Harvard, she is currently an economics professor at the London School of Economics.
Since she arrived in the US, she has often been asked questions such as when will China become a democracy and others. She found most prevalent Western perspectives on the rise of China are often simplistic, not well-informed, or even misinformed. The majority perceive China as going down, or its growth will end in disaster unless it adopts Western values and changes its economic and political system. Others regard China’s rise as a threat. In the book, Dr. Jin presented a more nuanced, data/evidence-based picture debunking much of these Western viewpoints. She illustrated the Chinese system, which is effective, adaptable to changes, and widely accepted by its citizens. There is no turning back.
Dr. Jin argues that China’s old economic playbook is based on GDP growth while the new playbook relies on innovation and technology, aiming at an orderly, regulated, monitored growth that is environmentally friendly and provides a better quality of life for its citizens. She described what she termed political economy, a centralized political and decentralized economic system that is unique to China. She documented how this system enabled the miraculous growth of the Chinese economy. She discussed how the three principal agents - the state, the firm (including entrepreneurs), and consumers - interact under this system; how this creates or enables checks and balances within this system, along the way, she explains how the political centralization-economic decentralization system incentivized the mayor economy which fostered thriving local economies; why state-owned enterprise (SOE) is not what’s portrayed in the West media; how history/culture makes the norm of accepting/trusting government leaders/decisions; and the impact of the one-child policy on the economy and the new generation.
The book covers other economic issues such as the household saving rate, the housing bubble, the stock market, rapid development of green industries such as electrical vehicle (EV), shadow banking, the financial system, the technology race as well as China’s role in global trade and the global financial stage. She pointed out pitfalls and risks of the China model such as at times some policies may linger longer than necessary, causing adverse effects. She contended the biggest challenge or unknown is whether China can escape the middle-income trap and success in doing so will validate the China model. All in all, this is a positive, optimistic book, well-researched and documented with examples, statistics, charts, tables, footnotes, and citations. Above all, it is easy to read and follow.
I particularly appreciate her assessment of the new generation, of which, she is a member. She described how the one-child policy has inadvertently fostered a new generation that is better educated, more confident, more tolerant, and more willing to spend. While still rooted in Chinese culture and history, the new generation is also more clear-headed about Western democracy vs what China has accomplished. Unleashing the spending habits of this new generation has the potential to create a significant stimulus to the economy. Being more familiar with multi-cultures and more tolerant, they are better equipped to bridge the gap among different world viewpoints. There is high hope for a bright future for China.
A side note: No doubt this book and Dr. Jin’s other professional dealings have contributed to a better understanding of the US and China. She came to the US in 1997 and flourished to be an accomplished economist, an endeavor that’s almost impossible under the current political climate. A case for cooperation/peaceful co-existence? An “indictment” for sanction/big power hegemonism?
I first heard of this book through a YouTube piece on an interview of the author by a reporter from the Washington Post. I was impressed by this very articulate young London School of Economics professor opining on the Chinese model of political economy and a host of other economic issues. As most book launches go, the interview centered more on her view on related current events rather than the details of her book. It piqued my interest to find out more: about how she advanced her points; what interesting stories/examples she cites; and whether the book is easy to read. Needless to say, I was also intrigued about her background: was she from China? Taiwan? Hong Kong? ABC? At that time, around late June 2023, there were long holds on her book at local libraries, suggesting it was a popular book. So, I purchased an audiobook. Not only is it timely, but the book is also a gem, a real treat, and a pleasant read.
So first, a few words about her background. She was born in Beijing in the 1980s. Her father was a high official in the China banking system (among the first to enter university after working as a laborer during the Cultural Revolution). She came to the US in 1997 as an exchange student, attending high school in Bronz, New York. With a BS and Ph.D. from Harvard, she is currently an economics professor at the London School of Economics.
Since she arrived in the US, she has often been asked questions such as when will China become a democracy and others. She found most prevalent Western perspectives on the rise of China are often simplistic, not well-informed, or even misinformed. The majority perceive China as going down, or its growth will end in disaster unless it adopts Western values and changes its economic and political system. Others regard China’s rise as a threat. In the book, Dr. Jin presented a more nuanced, data/evidence-based picture debunking much of these Western viewpoints. She illustrated the Chinese system, which is effective, adaptable to changes, and widely accepted by its citizens. There is no turning back.
Dr. Jin argues that China’s old economic playbook is based on GDP growth while the new playbook relies on innovation and technology, aiming at an orderly, regulated, monitored growth that is environmentally friendly and provides a better quality of life for its citizens. She described what she termed political economy, a centralized political and decentralized economic system that is unique to China. She documented how this system enabled the miraculous growth of the Chinese economy. She discussed how the three principal agents - the state, the firm (including entrepreneurs), and consumers - interact under this system; how this creates or enables checks and balances within this system, along the way, she explains how the political centralization-economic decentralization system incentivized the mayor economy which fostered thriving local economies; why state-owned enterprise (SOE) is not what’s portrayed in the West media; how history/culture makes the norm of accepting/trusting government leaders/decisions; and the impact of the one-child policy on the economy and the new generation.
The book covers other economic issues such as the household saving rate, the housing bubble, the stock market, rapid development of green industries such as electrical vehicle (EV), shadow banking, the financial system, the technology race as well as China’s role in global trade and the global financial stage. She pointed out pitfalls and risks of the China model such as at times some policies may linger longer than necessary, causing adverse effects. She contended the biggest challenge or unknown is whether China can escape the middle-income trap and success in doing so will validate the China model. All in all, this is a positive, optimistic book, well-researched and documented with examples, statistics, charts, tables, footnotes, and citations. Above all, it is easy to read and follow.
I particularly appreciate her assessment of the new generation, of which, she is a member. She described how the one-child policy has inadvertently fostered a new generation that is better educated, more confident, more tolerant, and more willing to spend. While still rooted in Chinese culture and history, the new generation is also more clear-headed about Western democracy vs what China has accomplished. Unleashing the spending habits of this new generation has the potential to create a significant stimulus to the economy. Being more familiar with multi-cultures and more tolerant, they are better equipped to bridge the gap among different world viewpoints. There is high hope for a bright future for China.
A side note: No doubt this book and Dr. Jin’s other professional dealings have contributed to a better understanding of the US and China. She came to the US in 1997 and flourished to be an accomplished economist, an endeavor that’s almost impossible under the current political climate. A case for cooperation/peaceful co-existence? An “indictment” for sanction/big power hegemonism?
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