Factions and Finance in China: Elite Conflict and Inflation

By Victor Shih
Cambridge University Press (2007), 264 pages

The old view of the Chinese leadership as split ideologically between liberal "reformers" and reactionary "hard-liners" is simply no longer useful, argues Northwestern University professor Shih in his new book. The reason: Everyone in government now agrees on broad issues like (gradual) reform and opening the economy - nobody is calling for a return to the 1970s. Rather, the divisions run according to constituency, between the "technocrats" of the central government and the "generalists" whose support comes from the provinces. With this framework in mind, Shih sets out to explain how economic policy is hashed out behind closed doors in Beijing. For example, "If the generalists are in the saddle, they'll push for faster loan growth," writes Rick Carew in the Far Eastern Economic Review. "Once that loan growth begins to feed inflation, party leaders sense a threat to social stability and hand control over to the technocrats."

Dragons at Your Door:

China Briefing's Small-Medium Enterprise China Business Bible
China Briefing Media (2007), 124 pages

It was only a matter of time before someone put out a book focusing exclusively on the challenges of SMEs in China, and here it now is. The SME China Business Bible has its sights set chiefly on sourcers and small manufacturers looking to dip their toes into the China market or jump straight in, covering the bases of setting up a foreign-invested enterprise and tax planning and reporting with the usual clarity and focus China Briefing is known for. The book also contains a useful section on operational risks in China, including stern (but humorous) business "commandments" such as: "Thou shalt conducteth due diligence on thy potential China partner"; "Thine engineers aren't lawyers. Taketh professional advise over contracts elst thy be smitten with great woe"; "Thou shalt continueth the good practice thou hast learnt at thy home dwelling place and shalt not fall prey to the falsehood 'China Is Different'"; and "China coveteth thine intellectual properties and thy shalt copyright protecteth them".