Kuhn - How Chinas Leaders Think

Contents

Chinas development, at least in part, is driven by patriotism and pride... The Chinese people have made great contributions to world civilization... Our commitment and determination is rooted in our historic and national pride... Its fair to say that we have achieved some successes, [nevertheless] we should have a cautious appraisal of our accomplishments. We should never overestimate our accomplishments or indulge ourselves in our achievements... We need to assess ourselves objectively... [and aspire to] our next higher goal... [which is] a persistent and unremitting process.

Xi Jinping

Politburo Standing Committee member

In the face of complex and ever-changing international and domestic environments, the Chinese Government promptly and decisively adjusted our macroeconomic policies and launched a comprehensive stimulus package to ensure stable and rapid economic growth. We increased government spending and public investments and implemented structural tax reductions. Balancing short-term and long-term strategic perspectives, we are promoting industrial restructuring and technological innovation, and using principles of reform to solve problems of development.

Li Keqiang

Politburo Standing Committee member

I am now serving my second term in the Politburo... President Hu Jintaos character is modest and low profile... we all have the highest respect and admiration for himfor his leadership, perspicacity and moral convictions... Under his leadership, complex problems can all get resolved... It takes vision to avoid major conflicts in society. Income disparities, unemployment, bureaucracy and corruption could cause instability... This is the Partys most severe test. In seven years under President Hu, the CPC has successfully maintained stability while pushing forward with reform and opening-up.

Liu Yunshan

Politburo member; Head, CPC Publicity Department

Chinas democratic development should cater to its own conditions... the American political system should not be used to judge the Chinese political system... We have our own models and goals for political reform... We will do what is in the best interests of our peoplewhich surely includes the development of democracy and the rule of law... Chinas political and legal system is certainly not perfect, and we are certainly not satisfied. This is why President Hu stresses advancing intra-Party democracy and democracy of society... Reformers must take risks... The people must decide.

Li Yuanchao

Politburo member; Head, CPC Organization Department

Our growth model of 30 years, which enriched us rapidly, has come to the end of its cycle.... During the economic downturn, weve reached consensus on the need to transform our developmental model... We are determined to develop Guangdongs capability for independent innovation.... Were not interested in facelifts.

Wang Yang

Politburo member; Party Secretary, Guangdong Province

How China should develop is a hard issue. China has achieved great economic success, but with many severe problems arising as a resultsuch as widening income gaps and increasingly strained human relationships. So, regarding urban development, the issues awaiting solution are how to produce a harmonious environment between human beings and nature, and among human beings themselves.

Yu Zhengsheng

Politburo member; Party Secretary, Shanghai Municipality

We must have passion for our work, enthusiasm for our career, and care for our people... We stress dedicated work, honest performance, innovation, and unity among our officials. We will go nowhere if we ignore reality or fear innovation... Im not interested in reports, only results.

Zhang Gaoli

Politburo member; Party Secretary, Tianjin Municipality

Copyright 2011 by Robert Lawrence Kuhn.

Published in 2011 by John Wiley & Sons (Asia) Pte. Ltd.

2 Clementi Loop, #02-01, Singapore 129809

All Rights Reserved

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons (Asia) Pte Ltd, 2 Clementi Loop, #02-01, Singapore 129809, tel: 65-64632400, fax: 65-64634605, e-mail:

This publication is designed to provide accurate and authoritative information with regard to the subject matter covered. It is sold with the understanding that the Publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required, the services of a competent professional person should be sought.

Neither the authors nor the publisher are liable for any actions prompted or caused by the information presented in this book. Any views expressed herein represent those of the authors and do not represent the views of the organisations they work for.

Other Wiley Editorial Offices

John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, USA

John Wiley & Sons Ltd., The Atrium, Southern Gate, Chichester PO19 BSQ, England

John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario M9B 6H8, Canada

John Wiley & Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia

Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany

Library of Congress Cataloging-in-Publication Data:

ISBN 978-0-111-808590-5 (paperback)

ISBN 978-0-111-810427-9 (e-pdf)

ISBN 978-0-111-810426-2 (e-mobi)

ISBN 978-0-111-810425-5 (e-pub)

About the Author

Dr. Robert Lawrence Kuhn is an international investment banker, corporate strategist, China expert, and public intellectual. Since 1989, he has worked with Chinas leaders and advised the Chinese government (economic policy, industrial policy, mergers and acquisitions, science and technology, media and culture, Sino-U.S. relations, international affairs, and international communications). He has visited more than 50 cities in over 20 provinces and regions in China, working with leaders in government and business.

Dr. Kuhn advises leading multinational companies, CEOs and C-Suite executives, on formulating and implementing China strategies (sectors include financial services, technology, energy/resources, industrial, media and entertainment, and consulting), and he works with major Chinese companies on structuring their capital markets financings and M&A activities. Specializing in M&A for over 30 years, Dr. Kuhn was president and co-owner of the largest M&A firm in the U.S. representing middle-market companies (which he sold to Citigroup in 2000).

Dr. Kuhn advises and works with China senior leaders on special projects. He is recognized as the author of The Man Who Changed China: The Life and Legacy of Jiang Zemin , a precedent-setting biographythe first of a living Chinese leader published in Chinawhich was Chinas best-selling book of 2005. He is the author of two event-marking books: China 30 Years: A Great Transformation Of Society (2008, in Chinese), which commemorates Chinas 30th anniversary of reform and opening up and emphasizes President Hu Jintaos political philosophy and policies; and How Chinas Leaders Think (this book, first published in October 2009), which commemorates Chinas 60th anniversary and focuses on Chinas new (Fifth) generation of leaders (conversations with ~100 leaders), including Vice President Xi Jinping. Dr. Kuhn advised then Zhejiang Party Secretary (now Vice President) Xi Jinping on his U.S. visit (2006); he wrote exclusive articles with Politburo Member Li Yuanchao on Chinas political reform ( BusinessWeek , 2008) and the Partys commitment to learning ( Forbes , 2010), and with Politburo Member Wang Yang on transforming Guangdong Province ( BusinessWeek , 2009).