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Dealing with China: An Insider Unmasks the New Economic Superpower Paperback – April 12, 2016
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Hank Paulson has dealt with China unlike any other foreigner. As head of Goldman Sachs, Paulson had a pivotal role in opening up China to private enterprise. Then, as Treasury secretary, he created the Strategic Economic Dialogue with what is now the world's second-largest economy. He negotiated with China on needed economic reforms, while safeguarding the teetering U.S. financial system. Over his career, Paulson has worked with scores of top Chinese leaders, including Xi Jinping, China's most powerful man in decades.
In Dealing with China, Paulson draws on his unprecedented access to modern China's political and business elite, including its three most recent heads of state, to answer several key questions:
How did China become an economic superpower so quickly?
How does business really get done there?
What are the best ways for Western business and political leaders to work with, compete with, and benefit from China?
How can the U.S. negotiate with and influence China given its authoritarian rule, its massive environmental concerns, and its huge population's unrelenting demands for economic growth and security?
Written in the same anecdote-rich, page-turning style as Paulson's bestselling memoir, On the Brink, Dealing with China is certain to become the classic and definitive examination of how to engage China's leaders as they build their economic superpower.
- Print length448 pages
- LanguageEnglish
- PublisherTwelve
- Publication dateApril 12, 2016
- Dimensions5.35 x 1.55 x 8.05 inches
- ISBN-101455504203
- ISBN-13978-1455504206
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Editorial Reviews
Review
-- BusinessWeek, on Paulson's ON THE BRINK
"Engaging, well-written narrative."
--Wall Street Journal, on Paulson's ON THE BRINK
"Henry Paulson was for better or worse the leader throughout the crisis. Throughout the book Paulson truly shines."
--Daily Markets, on Paulson's ON THE BRINK
About the Author
Product details
- Publisher : Twelve; Reprint edition (April 12, 2016)
- Language : English
- Paperback : 448 pages
- ISBN-10 : 1455504203
- ISBN-13 : 978-1455504206
- Item Weight : 13.6 ounces
- Dimensions : 5.35 x 1.55 x 8.05 inches
- Best Sellers Rank: #218,816 in Books (See Top 100 in Books)
- #88 in Government Management
- #129 in Economic Policy
- #173 in Economic Policy & Development (Books)
- Customer Reviews:
About the author

Henry M. Paulson, Jr. served under President George W. Bush as the 74th Secretary of the Treasury from June 2006 until January 2009. Before coming to Treasury, Paulson was Chairman and Chief Executive Officer of Goldman Sachs since the firm's initial public offering in 1999. He joined Goldman Sachs Chicago Office in 1974 and rose through the ranks holding several positions including, Managing Partner of the firm's Chicago office, Co-head of the firm's investment Banking Division, President and Chief Operating Officer, and Co-Senior partner.
Prior to joining Goldman Sachs, Paulson was a member of the White House Domestic Council, serving as Staff Assistant to the President from 1972 to 1973, and as Staff Assistant to the Assistant Secretary of Defense at the Pentagon from 1970 to 1972.
Paulson graduated from Dartmouth in 1968, where he majored in English, was a member of Phi Beta Kappa, and an All Ivy, All East football player. He received an M.B.A. from Harvard in 1970.
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Top reviews
Top reviews from the United States
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Why I did not choose to give this 4 or 5 stars is the inherent contradictions at times, or lack of broadening his arguments and examples beyond those of Goldman Sachs. The first third of the books is fascinating, learning how Paulson and his team 'built' the GS business in China. No easy task, and certainly one that provided a 'game changer' in many regards to their respective business. I personally enjoy reading these 'case studies' as they offer valuable insight on how deals did or did not happen. But was GS the only 'smart people in the room'? That is what you are left with thinking. Perhaps some greater humility and expansion on the other great generations of American entrepreneurs, and not just in the finance world, would have also been valuable for Mr. Paulson to add.
He also details key personal relationships with some of the most senior leaders in China; again, very helpful and where Mr. Paulson's book has great value. This personalization hopefully allows those not so familiar with China to better understand that not everyone in the senior leadership in China is an ideologue or evil person. They are quite often, shrewd, pragmatic, strong leaders aiming to help their country develop and reform.
However, some of these details of relationships includes officials who have found themselves on the other sides of the law. And granted, in China, this is a very complicated item to predict ---- which officials will or will not be swept up in the anti-corruption campaign given its depth and breadth. But I want to focus on Paulson's descriptions on the now-disgraced Zhou Yongkang, who is sitting awaiting a public trial on corruption charges. The passages I was waiting for Mr Paulson to include near the end of the book.............was an attempt at distancing himself from Mr. Zhou or reinforcing his strong commitment (as captured in other chapters) about how corruption really detracts from the Chinese reform agenda. This didn't happen as I hoped, when Mr. Paulson merely skims over this with regards to Zhou; I find this very strange given the corruption allegations and that this is one of the most senior officials in Chinese history to be accused of corruption and kicked out of the Party. Why Mr. Paulson did not choose to add this facts or an addendum before publication seems baffling. Perhaps he and the publishers should reconsider this; otherwise, those who strongly know and follow China, will be left with how Mr. Paulson came to know Zhou in his days as the Chairman of CNPC only, tarnishing Mr. Paulson's often, impeccable sense of judgement. This is a reason for 3 stars.
Lastly, I want to applaud Mr. Paulson's commitment to the natural environment and for linking environment with economic issues. The two are very heavily linked, and I have a new found respect about his commitment to forwarding the environmental causes that the world has, and that China needs to solve in a very critical sense. I recommend this book to all of those interested in US-China relations, as well as those interested in people who played a great role in our current history ---- Mr. Paulson is someone very credible in both regards and I look forward to seeing what his Institute can further accomplish.
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.
Top reviews from other countries
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.



