Mao and Markets: The Communist Roots of Chinese Enterprise

Mao and Markets: The Communist Roots of Chinese Enterprise by Christopher Marquis and Kunyuan Qiao

China is not Russia. Initially, Mao was influenced by Soviet Communism. However, he later went his own way. The Chinese background was much different than that of Russia. Chinese society also has a number of underlying, primarily Confucian beliefs that differ from those of Russia. Chinese communism had started in the rural areas, rather than factories. The Chinese also had a Japanese occupation to respond to as well as another government to deal with. 

Mao's reign was defined by a number of key episodes that continue to influence business today. Many large businesses have followed a similar path of starting in rural areas and then expanding into cities. Business leaders that lived through the Great Leap Forward tend to be very frugal. Leaders that went through the cultural revolution have less respect for the rule of law. The Third Front helped launch key business hubs in remote locations. Some of these have gone on to prosper today.

Modern China has become very capitalist, while still maintaining Communist rule. There are many communist party members. To join the party, one must go through a fairly extensive process. Party membership is not a prerequisite for business leadership. However, business that have multiple party members will set up an organization. The government itself is an extension of the party. Top down control is exerted over the country. However,  individual regions have significant autonomy. Thus individual localities may compete with others and may have different policies that work for or against businesses.

Charitable giving and relationships are also a key part of Chinese business. Business leaders typically result to relationships rather than the courts to resolve disputes. Charitable giving and support of the country is seen as part of the duties of a business leader. Many charitable organizations are also tied to the communist party.

Things are not all rosy for business leaders. Prison terms are not uncommon for those that speak out against the government. Local leaders may implement anti-business policies. Some wealthy business leaders have sought to leave the country to protect their wealth.

China has achieved great economic growth while maintaining the single party leadership. There is significant autonomy within the system to support a variety of ideas. Communism and capitalism work fine together. How will they fare in an economic downturn?

Red Star over China

Red Star over China: The Classic Account of the Birth of Chinese Communism by Edgar Snow

In the 1930s, Mao was a mystery to the west. Edgar Snow traveled up to the areas held by Red China to talk with Mao and see what was going on. At the time, Mao was far from taking full control over China. He was originally a teacher and had helped in a Communist rising in China. They were influenced by the Russian communism and hoped to set up a true peasant-based communism in China. 

The book is a journalistic story. We hear Mao's story. In this story the peasants hate the ruling "White" Chinese, but jump to the support of the Communist "Red" Chinese. The ruling Whites treat the Reds as bandits. However, the Reds realize they are fighting for a noble cause. They want democracy and rights for everyone. They advocate freedom, including religious and minority freedom. They are primarily against the Japanese imperialist and want to have a China rules by the Chinese. Generalissimo Chiang Kai-shek is often portrayed as a poor leader who is too supportive of the rich and imperialists.

It is interesting to see how Mao wanted to portray himself. He thought of himself as an idealist. He may well have been. He may well have been. However, rebelling may have been quite different from actually leading. It is hard to see how the cultural revolution and great leap forward would come about. However, some of Mao's early criticisms of his education give some hints. He felt he was right and was upset about other classes (like art) that he felt were a waste of time. He wanted to be a teacher, but ended up a leader of a billion people. 

Maoism: A Global History

Maosim is a history of the bread of socialism espoused by Mao Zedong. It is not a biography of Mao. Instead, it focuses on the rise to power of his brand of communism and implementation of similar principals in other countries. Maoism differed significantly from the Russian communism. (And both were quite different from what Marx envisioned.) Maoism supported violence. It was also very peasant-centric. It was ideologically inconsistent. What was preached was not necessarily what was practiced. It is somewhat politically pragmatic, willing to change to continue to stay in power. The cult of personality was also important. After Mao's death, the cult of Mao gradually faded in China, only to be gradually revived. Maoist China is arguably the most successful implementation of communism in the world. However, it has been very adapted to Chinese conditions, adopting many capitalistic components.
The discussion of Maoism in other areas of the world is enlightening. Overreactions to Maoism led to heavy American involvement in Vietnam. Maoist China has strategically given aid to other countries to help meet its means. Some countries (such as Cambodia) have adopted ideology. Others, like those in Africa would often just go through the motions. In the west, Maoism appeals to those outside the mainstream. The violence appeals to many developing countries.

The China Mirage: The Hidden History of American Disaster in Asia

Americans didn't make an effort to understand Asians and paid the consequences. America viewed a mirage of Asians that wanted to be westernized Christians. Political leaders were willing to do whatever it took to help fulfill that "mirage". This lead to Pacific involvement in World War II, the Korean war and Vietnam war. Only after the disaster of the Vietnam war did American leaders give up on this mirage and finally accept Asians as Asians and not proto-Americans. (And funny enough, after the US backed off, they went ahead and adopted American materialism.)

Chiang Kai Shek receives the most negative treatment in this book. He comes across as a bumbling opportunist who is controlled by the Soong family. He stumbled upon Sun Yat-sen's mantel and saw it as a great opportunity to enrich himself. (Generalisimo cash-my-check.) Americans wanted to see a westernized China, and he was more than willing to comply. He married an American-educated Chinese woman (who cares if he was already married.) He converted to Christianity. He was exactly what Americans hoped for. He would even put on a show of fighting the Japanese (even though he would much rather spend the resources to fight Mao.) FDR fell for it as did many other politicians (and the American public.)

Mao, on the other hand, is portrayed in a somewhat positive manner. He was basically "not an idiot". He built up support among the masses and would actually help fight the enemy. He had fallen out of favor with the communists (due to his peasant support). He was willing to align with the US. However, the US would have nothing to do with him.

The root of the China problem is traced back to the Chinese exclusion act. The Chinese were too successful. They were forced out of many towns where the law would turn a blind eye to the mob violence. The Chinese were not permitted to immigrate to the country. The primary contact point with the Chinese were American missionaries, who usually lived in isolated compounds in China. There was no real understanding, so the leaders and people were willing to believe what they wanted.

What would have happened were it not for the collective "bag over head"? Maybe China would be much more "Americanized". Taiwan would probably not exist as it is today. Some of the atrocities like the "Great Leap Forward" may not have happened. However, it is difficult to say that either country would be better off now. The "competition" between China and US has been good for global growth. China's rapid infrastructure growth is something the US could only dream of. The American economy also relies heavily on all the manufacturing and investment from China. Maybe the growth would have been inferior with an alliance.

Korea and Vietnam, however, would have been much different. With a Sino-American alliance, the partitioning of Korea may never have happened. The Vietnam de-colonization would have been handled in the European model without the prolonged war. The war experience in Asia would not have been needed. However, the military would have wanted some means of testing its cold war weapons. Would this mean a Russian war in Europe?

Mao: The Unknown Story

[October 2009] From the outset, it is clear that the authors' are not fond of Mao. He is cast in an extremely negative light as somebody who does just what is in his own best interest, with no respect for others, or even his own legacy. Many of his "accomplishments" are passed off as the works of others. (For example, the victory in the Chinese civil war is predominantly seen as a result of bad moves by the nationalists, often due to external factors.)
This overly negative view, however, does serve to paint a picture of Mao as a person, rather than the deity that arises in Maoist propaganda. Unlike fascists of his era, Mao was able to die in is sleep. Also, unlike other major communist countries, China's communist government still remains in place today. Thus, the balanced view of Mao still remains a great challenge. This book may swing the pendulum a little too far to the negative, but remains an important step in understanding an important historical figure.
In spite of the book's length, I did find it lacking in Mao's early history. He seemed to suddenly arrive in a key leadership position in the early communist party, seemingly without any strong qualifications. From the book, it is unclear why people would have such song support for a seemingly unqualified schemer.