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A review by theravenkingx
The Art of Business: How the Chinese Got Rich by Greg Clydesdale
informative
medium-paced
5.0
The art of business by Greg Clyde's dale is fraught with knowledge and history of China and its commercial activities. It's a great book to learn how China became one of the richest countries in the world. The Art of Business challenges the common belief that China’s commercial success is based on Sun Tzu’s <i>The Art of War</i>. Instead, the author explores the complex and long history of China’s economic development. He shows how China benefited from the Silk Road, which connected it to Asia, Europe, and Africa, and the Grand Canal, which enabled trade within China. These trade routes allowed Chinese merchants to take advantage of price differences in different regions (arbitrage). Having read <i>Babel</i> by R.F. Kuang and <i>Money by Jacob Goldstein</i>, I already knew much of what this book taught me about China. It amazed me how much insight those books gave me into the history and culture of China.
This book provides a great insight into China’s complex commercial journey, the influence of which is still evident in how China operates its business operations.
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According to this book most of China's success came from building sophisticated trade routes, specialization, backward integration, honest business practices, mass production, and cultivating business relationships. When West was fighting it's religious wars China was making discovering the art of business. West of course tried to tame China and forced it to buy opium in exchange for China's silk, porcelain, and other quality products. This led to Opium War which changed the entire trajectory of China's economic development. It placed China in a complicated situation and forced it to sign unequal treaties that granted favourable trade concessions and territorial cessions to the West. China eventually had to think beyond family-owned businesses and modernize its commercial practices.
China was ahead of its time. They were using sophisticated and modern techniques like assembly line, debt investment, wholesale, etc when such concepts were outworldly to an average businessman.
However, China’s commerce was not always supported by its culture and politics. China was influenced by the philosophy of Confucianism, which emphasized trust (xin), social harmony, wisdom (zhi), humanity (ren), and righteousness (yi). While these values were admirable, they were not conducive to business. Confucianism discouraged innovation and entrepreneurship, as it valued stability, tradition, and conformity over change, creativity, profit, and individualism.
China's commercial activities reached their peak during Tang and Song dynasties, when, for the very first time, commerce was seen as respectable and important occupation, unlike their predecessors who considered merchants greedy and lowly. It was the time when restrictions placed on commerce was lifted up, trade was being encouraged, and poll and corvée taxes were being exempted. China became the first country to introduce coins for trade during this time.
The Mongols promoted trade even further by unifying China and establishing a sophisticated communication system along the Silk Road. They achieved this by creating relay stations where couriers could rest, change horses, and deliver or receive messages. This allowed China to absorb new technologies and ideas from other civilizations, and contributed to their discoveries of gunpowder, the art of printing, and their own ocean-going capabilities inspired by Arabs and Indians.
When Mongols were overthrown by the Ming dynasty in 1368, China witnessed a regression of it's economic development. The Ming dynasty restored the old Confucianist philosophy to China and relegated merchants to a lowly status. They also banned the use of coins. However, after Great Canal was repaired China's economy experienced another boost. This time confucianism played a vital role in establishing business ethics and values. The concept of philanthropy, quality, customer service, and honest dealing with customers became part of the China's business world. However, confucianism kept China from achieving its full potential. It's evident from the fact that Chinese who migrated outside China ended up becoming more successful and wealthier. Chinese diaspora in Southeast Asia is one of the largest and oldest in the world, with over 50 million people of Chinese origin living in the region. They have played a significant role in the trade, commerce, and industry of Southeast Asia for centuries, and have adapted to the local cultures and politics of their host countries.
The final chapter discusses china's need to modernize, and limiting its military activities in south China.
This book is full of information and very accessible and readable. A must read. Highly recommended.
This book provides a great insight into China’s complex commercial journey, the influence of which is still evident in how China operates its business operations.
---------------
According to this book most of China's success came from building sophisticated trade routes, specialization, backward integration, honest business practices, mass production, and cultivating business relationships. When West was fighting it's religious wars China was making discovering the art of business. West of course tried to tame China and forced it to buy opium in exchange for China's silk, porcelain, and other quality products. This led to Opium War which changed the entire trajectory of China's economic development. It placed China in a complicated situation and forced it to sign unequal treaties that granted favourable trade concessions and territorial cessions to the West. China eventually had to think beyond family-owned businesses and modernize its commercial practices.
China was ahead of its time. They were using sophisticated and modern techniques like assembly line, debt investment, wholesale, etc when such concepts were outworldly to an average businessman.
However, China’s commerce was not always supported by its culture and politics. China was influenced by the philosophy of Confucianism, which emphasized trust (xin), social harmony, wisdom (zhi), humanity (ren), and righteousness (yi). While these values were admirable, they were not conducive to business. Confucianism discouraged innovation and entrepreneurship, as it valued stability, tradition, and conformity over change, creativity, profit, and individualism.
China's commercial activities reached their peak during Tang and Song dynasties, when, for the very first time, commerce was seen as respectable and important occupation, unlike their predecessors who considered merchants greedy and lowly. It was the time when restrictions placed on commerce was lifted up, trade was being encouraged, and poll and corvée taxes were being exempted. China became the first country to introduce coins for trade during this time.
The Mongols promoted trade even further by unifying China and establishing a sophisticated communication system along the Silk Road. They achieved this by creating relay stations where couriers could rest, change horses, and deliver or receive messages. This allowed China to absorb new technologies and ideas from other civilizations, and contributed to their discoveries of gunpowder, the art of printing, and their own ocean-going capabilities inspired by Arabs and Indians.
When Mongols were overthrown by the Ming dynasty in 1368, China witnessed a regression of it's economic development. The Ming dynasty restored the old Confucianist philosophy to China and relegated merchants to a lowly status. They also banned the use of coins. However, after Great Canal was repaired China's economy experienced another boost. This time confucianism played a vital role in establishing business ethics and values. The concept of philanthropy, quality, customer service, and honest dealing with customers became part of the China's business world. However, confucianism kept China from achieving its full potential. It's evident from the fact that Chinese who migrated outside China ended up becoming more successful and wealthier. Chinese diaspora in Southeast Asia is one of the largest and oldest in the world, with over 50 million people of Chinese origin living in the region. They have played a significant role in the trade, commerce, and industry of Southeast Asia for centuries, and have adapted to the local cultures and politics of their host countries.
The final chapter discusses china's need to modernize, and limiting its military activities in south China.
This book is full of information and very accessible and readable. A must read. Highly recommended.