Dealing with China: An Insider Unmasks the New Economic Superpower Hardcover – April 14, 2015

I would strongly suggest reading this book in tandem with Michael Pillsbury's 100 Year Marathon. Paulson's work shows in great detail what has been achieved by continuing American engagement with China. Pillsbury's contends that the economic reforms that Paulson anticipates are unrealistic and that a good deal of the economy will remain under state ownership and control. Both positions have their strengths and weaknesses.Paulson's account does demonstrate reasons to be optimistic because it contains a great many details about businessmen, state officials, and business schools trying to foster best practices. There are also those working with Paulson and his wife on environmental issues. Most importantly Paulson notes that China refused Russian pressure to sell American investments during the 2008 financial crisis in order to undermine the American economy and give Russia and China an advantage. He's also quite candid and critical about the endless subsidies to some state owned industries that continue to run up debts.I really enjoyed the details of the personnel and deals described and analyzed in this book, but I could easily imagine that other readers might find the mini resumes provided about nearly everyone in the book to be tedious. Paulson's editors should consider producing an abridged version to provide the book to a broader readership.One comes away from Paulson's book impressed by the innovative instincts that allowed Goldman Sachs to help large state owned companies raise capital through the kind of IPOs usually reserved for publicly owned private companies. Clearly such actions have helped produce the Chinese economic miracle. However if one reads Pillsbury after reading Paulson one comes away thinking that the real reformers that could liberalize the economic and political order have been out of power since the Tiananmen Square protests in 1987 He contends that the leadership depended upon both economic growth and state control to prevent future mass movements. More importantly they've chosen to misrepresent and demonize American history to fuel nationalist competition with a supposedly anti-China America. All of this does not suggest that the reforms that Paulson thinks can be realized with engagement is realistic.The reader can decide which side to believe but Paulson's book is a "must read" for anyone who wants to be part of the discussion about what to do about China's rise.

Henry (Hank) Paulson has written another very significant and interesting book. Dealing with China:... is not nearly as exciting as On the Brink:... which treated the financial crisis. After all the United States economy was then in danger of entering another Great Depression. But Paulson has too much worthwhile experience with post 1978 China to ignore.Henry Paulson is a master salesman of financial instruments. He sold those instruments as a partner and CEO of Goldman Sachs. China was a major focus over the years. Paulson knows his customers, and the Chinese People definitely were not those customers. Instead, his sessions and many trips were directed successfully at powerful members of the Chinese Communist Party. I reluctantly awarded four rather than five stars for readability. Keeping track can be tedious. I spent about a month of spare time reading the Kindle version.There really are not many amusing moments to serve as respites. One is an incident with the US Navy that threatens to interfere with critical negotiations. The incident involves disrespecting a US aircraft carrier and DOD plans for retaliation. A mere ordinary Treasury Secretary might have trouble dealing with that situation.There are some parts of this book that I especially noted. Paulson almost talks the Chinese leadership into accepting the elements of financial capitalism. But the financial crisis, with Paulson as Treasury Secretary, creates some second thoughts. Goldman Sachs generated much of the structure for the crisis.Paulson is a conservative Republican, but he wants the Chinese to have a Government safety net as in the US. Why? Without the safety net, the Chinese save too much money and don't buy their products or foreign products. Also, unlike many of the politicians in his party, Paulson is an authentic environmentalist. He recognizes that the fantastically rapid economic growth of China creates a real pollution hazard and demand for resources. His own foundation now focuses on those problems.I understand that for family reasons Paulson was reluctant to write this book and probably will not write another. But if he does, I will read it.

Really great read and very refreshing take on China's transformation over the past 30 years. Paulson very clearly admires and respects China's leaders. With few exceptions they are portrayed as very smart human beings who care deeply about their country. In contrast to many writers, Paulson found the Chinese to be honest and forthright. It is noted that change comes slowly while consensus is built with large groups of decision makers. Frequent mention is made of the Communist Party's ongoing struggles to root out bureaucratic corruption and fradulent business practices in a country with three times the population of the United States.

Great book to read. This book will give you an understanding of how China became the number two economy in the world. Hank Paulson Jr. taught the Chinese government how the banking system works and so much more. China didn't become a powerful economy on their own. The U.S. made them powerful in so many ways. This book explains the most vital way. The Chinese government were smart to keep their mouths shut, observe and take notes.

Interessante, ma un vero mattone...

In-depth topics discussed

Paulson has demonstrated a much better logical understanding of China and how they do things. Their progress has been remarkable. They are people of hopes and great progress. Their government system is effective and improving. This book should be mandatory reading for Congress, Senatae and President. Instead of mistrust and demands, cooperation with China could serve as a model of how to get along with the different peoples of the world. The chinese approach to change serves as a good model for the rest of the world. This book will have longivity.

China: The new international economic monolith. A nation whose future is written in the stars as a world leader, or so we've been led to believe. Henry Paulson delivers here both a clear and concise history of doing business in, and with, China and also provides a blueprint on how to improve business relations with the Asian giant in the future. Paulson himself is an expert in his field and I found 'Dealing With China' to be both hugely informative and very entertaining, especially as I have minimal knowledge and understanding of business practices in general. The author presents his work in clear and understandable language and I was greatly impressed both by the change that has taken place in China over the past twenty years but also the very positive and productive co-operation that has taken place between the United States and the Chinese. Mr. Paulson's book makes for a refreshing change.Mr. Paulson has spent nearly twenty years doing business with the Chinese. Whilst working for Goldman Sachs since the late nineties, through to his time as Treasury Secretary in Bush Jnr's government and his work beyond, the author provides a fascinating account on how he and his colleagues worked with China's leaders to assist them in building up and re-organising their burgeoning economic might. The gargantuan state operated enterprises (SOE) that characterised China's economy were unproductive and noncompetitive, making losses so huge that the true amount could not be ascertained. Paulson and Goldman Sachs provided much advise and expertise on where to make the correct alterations in order to achieve success. The first half of the book documents Paulson's time at Goldman Sachs and the processes employed to assist the Chinese including the re-organising of their industries, the changing of business practices and also the training of executive managers who are skilled enough to make the decisions required to succeed.The author became Treasury Secretary in 2006 and was to play a huge role in the creation of the Strategic Economic Dialogue (SED) between the United States and China. The SED, and it's successor under the Obama administration; the S&ED, has since become a major pillar in bilateral relations between the two nations. Indeed, the author highlights and re-emphasises just how co-operation is essential to future bilateral success and this constitutes a running theme throughout the book; the many positive benefits that come from constructive dealings with China and it's leaders. This is also assisted by the author's personal relationships with China's leaders.A huge amount has been achieved over the previous two decades, however, much more needs to be accomplished. Mr. Paulson is above all a realist and gives significant attention to issues and problems that China still faces in it's battle to achieve greatness. Much reform still needs to be made by China both socially and economically. SOE are still very noncompetitive and sluggish. These same SOE provide many non-profitable services and facilities to their workers who still need to be provided for in a post SOE environment. China still relies too much on it's exports to power its economy and needs to develop an internal market for commodities and services which is still some way from being achieved. There is great inequality in wealth, crippling corruption is rife and there are huge environmental issues which need to be dealt with thanks to Chinese cities rates of industrial production, something the author takes a personal interest in. Mr. Paulson also states that, in his expert opinion, a certain amount of political reform may need to occur in order for China to develop a truly competitive free-market economy; constructive criticism from an expert in his field.I have always been of the opinion that China's 'rise' is not inevitable and much needs to be done in order for the country to become the world power its been slated to be and Mr. Paulson's work confirms this view to an extent. China has come a very long way in the past twenty years, yet more needs to be done in order for that growth to continue, and the author acknowledges exactly this. This is an excellent work and is both a history of dealing with China and also a guide to future success as well. Above all, I was impressed by how much both US and Chinese officials were willing, and indeed are willing, to work together and build a secure world order.

A very American view on relations with China, the book is important despite its unfortunate sub-title. Paulson's views are important, not only because he has a long experience of dealing with Chinese leaders, but also because he was, for a time, a major player in the US government.