Summary of Dealing with China

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9

Qualities

  • Eye Opening
  • Analytical
  • Innovative

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Henry M. Paulson Jr. has seen the problems, possibilities and power of China firsthand. As CEO of the investment banking firm Goldman Sachs, “Hank” Paulson helped multiple state-owned Chinese enterprises sell stock for the first time. These IPOs unmasked state-owned enterprises’ odd structure; these companies resembled city-states, each providing housing, hospital care, police protection and other services to employees and their families. The process of preparing state-owned enterprise IPOs made Chinese firms more efficient as they tried to blend capitalism with Chinese socialism. The slowing pace of reform of state-owned enterprises mirrors the slowing of the Chinese economy, which may threaten the Communist Party’s dominance. getAbstract recommends Paulson’s anecdotal details, ample insight and in-depth analysis.

About the Author

A former US Treasury secretary, Henry M. Paulson Jr. is a former chief executive officer of investment banking firm Goldman Sachs and past chairman of The Nature Conservancy.

 

Summary

A Front Seat to History

As a former CEO of investment banking firm Goldman Sachs and as US Treasury secretary, Henry M. Paulson Jr. dealt extensively with Chinese leaders. One of them, Zhu Rongji, organized the first stock exchange in China since the Communist Party came to power. Zhu became vice premier under Premier Li Peng in 1991, with daily responsibility for running and reforming China’s centralized command economy.

Zhu Rongji sought to reform state-owned enterprises (SOEs). He wanted to break the “iron rice bowl,” a comprehensive package of lifelong care and support services that SOEs provide to their employees. These companies supplied hospitals, restaurants, stores, schools and cemeteries for staff members and their families. The state-owned banks lending to SOEs were practically insolvent. Zhu recognized that overhauling SOEs would require banking reforms and an end to limitless credit and loan forgiveness.

Zhu was a force behind the China Telecom IPO because he believed taking the telephone giant public would force efficiency upgrades on other state-owned enterprises. However, SOE reform lost momentum in the early 2000s. Today even the best-managed...


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    M. C. 3 years ago
    Lot of recycled information we are aware of....and have been for years. Just an attempt to monetize a name and position